The Monte Vista Water District retains “AA” credit rating from Standard & Poor’s (S&P), a rating agency, on the District’s outstanding debt and earns “AA” credit rating on two new bonds for capital projects. The distinguished rating affirms the very strong financial condition of the District.
“We are proud of our strong operational and financial management practices,” said Board of Directors President Sandra Rose. “Fiscal responsibility is a core value of the district.The Board and staff carry out all district operations with accountability and transparency at the forefront.”
The rating agency analyzes several aspects of the district’s profile and financial practices, including the agency’s responsibility in balancing revenue and expenditures while serving its customers. S&P acknowledged the district serves a stable, primarily residential customer base with a median household effective buying income (MHHEBI) in Montclair as average, at 92% of the national median in 2019. Financial analysts considered MVWD’s water rates affordable with the average residential bill representing 1.2% of MHHEBI. S&P also recognized the district’s diverse water supply portfolio that includes groundwater, imported surface water, and recycled water, illustrating MVWD’s commitment to providing safe, reliable drinking water for its customers.
The S&P rating suggests financial stability is demonstrated by the district’s very strong debt and liabilities profile with a modest debt-to-capitalization ratio. The district’s pay-as-you-go funding for capital improvement projects is a prime example of sound fiscal practices that keep district debt manageable due to long-term planning efforts.
Retaining the AA credit rating allows the District to borrow money at lower interest rates to complete capital projects. The District recently issued bonds to fund treatment improvements needed to meet stricter regulations on drinking water as well as address inadequacies with the District’s headquarters campus.
“This is attributed to our Board’s leadership in establishing the policies and strategic direction for the District,” said General Manager Justin Scott-Coe. “It also demonstrates our staff’s stewardship in implementing these policies and strategies through daily service to customers.”
