Cedar Rapids, Iowa News, Sports, and Weather
Financially Troubled Water District Resisting Takeover
BOUTON, Iowa (AP) The financially troubled Xenia Rural Water District is resisting takeover efforts by the firm that insures the district's bonds.
The Des Moines Register reports that Assured Guaranty has gone to court, seeking to fire the district's directors and to install new management.
The district has debts of about $135 million. It owes about $2.5 million to Assured Guaranty, which made bond payments after the district defaulted.
Xenia board Chairman Dan Lovett says the district is doing everything it can to avert a takeover.
Plans to pay off the debt include a rate increase that the board will consider on Nov. 29.
Xenia's financial troubles were mostly caused by expansion plans that never materialized. Xenia serves about 9,400 customers in parts of 12 counties north and west of Des Moines.