Tag Archive for: Rainbow Municipal Water District

Gary Croucher-Board Chair-San Diego County Water Authority-Primary

Water Authority Credit Remains Strong as Risks Emerge

All three major rating agencies affirmed the San Diego County Water Authority’s strong credit ratings, which will help us minimize the cost of financing important water reliability projects.

It is particularly gratifying that the reports cited the Water Authority’s strategic management, our conservative approach to water sales projections, and the benefits of rate case litigation that recently resulted in $44.4 million being refunded to local retail water agencies, among many other factors. In affirming their credit ratings, the services also noted the Water Authority’s strong financial leadership (including prudent strategies to manage issues related to COVID-19), decades of success diversifying water supply sources, our commitment to infrastructure maintenance, and our financial reserves for managing contingencies.

Significant investments in supply diversification

Just one example: Fitch Ratings said that the Water Authority’s “operating costs are low” and that the Water Authority’s “significant investments in supply diversification (that) have allowed SDCWA to continue to meet water demands in its service area.” Fitch also accounted for the Water Authority’s current hiring freeze, spending cuts and deferral of $30 million in planned capital spending to proactively manage finances during the pandemic.

At the same time, rating agencies also noted significant challenges ahead, including efforts by Fallbrook Public Utility District and the Rainbow Municipal Water District to “detach” from the Water Authority – a move that could negatively impact ratepayers countywide. If the two North County agencies leave per their plans, Water Authority analysis shows that the other 22 member agencies – who serve about 3.2 million residents – will have to pay $16 million to $46 million more per year to cover the cost of the departing agencies.

Detachment and credit ratings

Moody’s said detachment could lead to a credit downgrade, which would increase borrowing costs for critical water reliability projects. S&P Global affirmed its AAA rating for the Water Authority. However, it issued a negative outlook for the agency and called detachment uncertainty “an additional credit stressor” – “especially if an approved detachment sets a precedent if members can easily detach from the authority.” S&P added that, “this would be further exacerbated if the two members are not required to pay for their portion of the associated debt and infrastructure costs that the authority has undertaken to provide reliable water sources.”

In May 2020, the Water Authority’s Board of Directors voted to oppose detachment unless four conditions can be met related to protecting Fallbrook and Rainbow ratepayers, avoiding negative impacts for other member agencies, protecting the Sacramento-San Joaquin Bay-Delta, and maintaining the Water Authority’s voting rights at MWD. The issue is under review by the San Diego Local Agency Formation Commission, known as LAFCO. The LAFCO process, which is designed to provide for an impartial analysis of these issues, will allow the Water Authority and all other affected parties to determine if these conditions are satisfied. If not, the Water Authority will oppose detachment.

Credit Agencies Affirm Water Authority’s Strong Ratings Despite Headwinds

All three major rating agencies – S&P, Moody’s, and Fitch – have affirmed the San Diego County Water Authority’s strong credit ratings, which will help the Water Authority optimize its debt portfolio and minimize the cost of financing important water reliability projects.

Credit Agencies Affirm Water Authority’s Strong Ratings Despite Headwinds

March 17, 2021 – All three major rating agencies – S&P, Moody’s, and Fitch – have affirmed the San Diego County Water Authority’s strong credit ratings, which will help the Water Authority optimize its debt portfolio and minimize the cost of financing important water reliability projects. The reports cited the Water Authority’s strategic management, its conservative approach to water sales projections, and the benefits of the Water Authority’s rate case litigation that recently resulted in $44.4 million being refunded to local retail water agencies – among many other factors.

Successful Sustainable Landscaping is a Click Away for Fallbrook, Rainbow Customers

No matter whether their landscaping is just a few square feet alongside a front porch or estate acreage, thousands of San Diego County residents have learned to embrace sustainability as a central principle for creating and renovating their landscapes. The San Diego County Water Authority offers financial incentives and educational resources to customers in Fallbrook and Rainbow to improve their landscaping.

Detachment Committee Consultant to Receive Supply Reliability Data This Month, Review in March

The Advisory Committee on the Fallbrook/Rainbow Detachment convened by San Diego’s Local Agency Formation Commission met Feb. 1, and by the next advisory committee meeting scheduled for April 5, consultant Michael Hanemann will have a recommendation on the supply reliability issue associated with the Fallbrook Public Utility District and the Rainbow Municipal Water District plans to detach from the San Diego County Water Authority and annex into the Eastern Municipal Water District.

Hoch to Design Rainbow’s Hutton and Turner Pump Stations

Hoch Consulting has been given the Rainbow Municipal Water District contract to design the Hutton and Turner pump stations.

Rainbow MWD Approves Lift Station Replacement MND

The work which includes the replacement of the Rainbow Municipal Water District’s Lift Station No. 1 will have an environmental Mitigated Negative Declaration along with a Mitigation Monitoring and Reporting Program.

Hamilton Chosen as Rainbow MWD Board President

The Rainbow Municipal Water District board selected Hayden Hamilton to be the board president for 2021 and 2022 meetings.

Vanderlaan Named LAFCO Chair, Reappointed to New Term

Bonsall resident Andy Vanderlaan will chair the 2021 meetings of San Diego County’s Local Agency Formation Commission, and he was also reappointed for another four-year term on the LAFCO board.

One 8-0 LAFCO vote Dec. 7 reappointed Vanderlaan as LAFCO’s public member. A separate 8-0 vote elected Vanderlaan as the LAFCO board chair for 2021 while electing County Supervisor Jim Desmond as the vice-chair for the 2021 meetings.

Vanderlaan Named LAFCO Chair, Reappointed to New Term

Bonsall resident Andy Vanderlaan will chair the 2021 meetings of San Diego County’s Local Agency Formation Commission, and he was also reappointed for another four-year term on the LAFCO board.

One 8-0 LAFCO vote Dec. 7 reappointed Vanderlaan as LAFCO’s public member. A separate 8-0 vote elected Vanderlaan as the LAFCO board chair for 2021 while electing County Supervisor Jim Desmond as the vice-chair for the 2021 meetings.

The public member’s term actually expires in April 2021. LAFCO had the option of reappointing Vanderlaan or seeking additional applicants. The reappointment of Vanderlaan was contingent upon his willingness to serve a seventh term. “I’m inclined to do that,” he said.