The agency that delivers water to much of Southern California forked over tens of millions of dollars to get out of a series of bad deals it’d hoped would save taxpayers money.
Our Ashly McGlone found the Metropolitan Water District of Southern California sunk nearly $88 million into its effort to exit so-called interest-rate swap deals. They initially projected those deals would stabilize debt interest rates for a good price. That didn’t happen.
And Los Angeles-based Metropolitan used borrowed money to pay the swap termination fees, meaning past swap terminations will likely cost even more.
Oh, and there’s still another a $71.5 million swap liability on the books.
McGlone discovered Metropolitan was far from the only local agency to invest in swaps – it just invested and lost far more.
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