Vallecitos Water District is an independent, special district dedicated to providing water, wastewater and reclamation services to approximately 94,000 people in a 45-square-mile area that includes San Marcos; the community of Lake San Marcos; portions of Carlsbad, Escondido and Vista; and other surrounding unincorporated areas.
Fitch Ratings, a global rating agency that provides the world’s markets with independent and prospective credit opinions, research and data, matched District financials against its established criteria, generating a ‘Stable’ rating outlook. The end result is a cost savings should the District need to borrow money for future projects to benefit its customers.
“We took a look at all areas of operation with fresh eyes to see where we could reduce costs,” said Tom Scaglione, Vallecitos Water District Finance Manager.
To achieve this rating, the District was proactive in saving money where possible by reorganizing and reducing staff, deferring capital projects, and reducing the cost of employee benefits. After all those savings efforts were expended, water and sewer rates were raised incrementally to prevent future financial shortfalls and restore reserves.
According to Fitch Ratings, some of the drivers to the positive rating outlook include a strong financial performance despite a period of economic and environmental stress, increased debt coverage and diverse financial revenue streams from providing sewer and water service, property tax and capacity fees.
For more information on Fitch’s ‘AA+’ rating of the Vallecitos Water District, visit www.fitchratings.com.