Improved Water Availability Raises Bond Rating To ‘AA-‘ for Montecito Water District
Earlier this month S&P Global Ratings announced the long-term rating on Montecito Water District California's series 2020A water revenue refunding bonds increased to ‘AA-‘ from 'A+'. The report references a stable outlook and access to water from the City of Santa Barbara Charles E. Meyer desalination plant (through the Water Supply Agreement beginning in 2022) as materially improving water resiliency through severe drought conditions and alleviating exposure to unpredictable water allocations from the State Water Project. The rating also expresses confidence that the District will continue to produce solid and consistent financial results.
“For nearly a decade we’ve put tremendous effort into securing local, reliable water supplies and cementing regional collaboration,” said Board President Ken Coates. “The improved bond rating is strong validation that the District is on the right path with both stewardship of water resources and its fiscal responsibility.”
Numerous actions to increase local, reliable supplies in recent years have helped strengthen and diversify the District’s water portfolio and reduce dependence on the increasingly variable State Water Project deliveries. In addition to participation in desalination which secures monthly water deliveries from the City of Santa Barbara, the District has accumulated more than a year’s worth of water since it began a groundwater banking program in 2017. During rainy years surplus State Water Project deliveries are conveyed to a groundwater bank and may remain stored until needed, for example under future drought conditions.
Another important achievement is the completed Water Efficiency Plan which identifies customer-facing initiatives to promote and support efficient water use behaviors. Plan projects implemented to date include Water Budgets, a rebate program, and WaterSmart - a customer portal that provides access to the numerous benefits of smart meters such as real-time usage data and customizable leak notifications. The greatest opportunity for a robust long-term water supply outlook is through the District’s pro-active management of supply and demand—annual customer use has remained consistently reduced by about 45% since 2015.
Montecito Water District’s mission is to provide an adequate and reliable supply of high quality water to the residents of Montecito and Summerland, at the most reasonable cost. In carrying out this mission, the District places particular emphasis on providing outstanding customer service, conducting its operations in an environmentally sensitive manner, and working cooperatively with other agencies. For additional information visit www.montecitowater.com, like Montecito Water District on Facebook, and follow on X @MontecitoWater.
