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LA Sells $400M in Bonds After Sunset Pipe Burst

Bloomberg Markets •
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The Los Angeles Department of Water and Power plans to sell $400 million of water revenue bonds Tuesday to help finance a sweeping infrastructure overhaul that has drawn fresh scrutiny since a ruptured pipe shut part of Sunset Boulevard for several days.

The bond sale comes as city officials face increased pressure to modernize aging water systems across Los Angeles, following the high-profile failure of a major pipe on Sunset Boulevard that caused significant traffic disruptions and raised concerns about infrastructure readiness.

City leaders emphasized that the funds will support critical upgrades to the water distribution network, including pipe replacements, system reliability improvements, and enhanced safety measures. The infrastructure push aims to prevent future outages and ensure reliable service for residents.

The bond issuance reflects broader efforts by the Los Angeles Department of Water and Power to address long-standing infrastructure needs, with the recent Sunset Boulevard incident serving as a catalyst for accelerated investment and public attention on the city's water system vulnerabilities.