Cucamonga Valley Water District Approves Budget for the New Year
The Cucamonga Valley Water District (CVWD/District) Board of Directors approved its Fiscal Year 2018 Operating Budget of $72.2 million and Capital Improvement Budget of $10 million, which includes water, wastewater, and recycled water capital projects. The budget provides a financial roadmap for the District to achieve its operational, water resource, and administrative goals for the new fiscal year, which began July 1, 2017.
CVWD is committed to providing Service Beyond Expectation while effectively managing its financial and natural resources. Prudent fiscal management and accountability are essential to ensure adequate levels of funding for the District’s major capital projects. Included in the 2018 budget are capital projects that focus on local water supply enhancements such as a Nitrate Wellhead Treatment Plant and reservoir for storage, and the completion of a new well. Another important project in the 2018 budget that supports the efficient use of water is the completion of the Fixed Network/Meter Exchange Project. These projects meet the objectives of the District’s Water Supply Plan by increasing water supply reliability, storage, and transmission, while meeting strict water quality standards.
“Having a well-planned and detailed budget is a critical factor in ensuring water for our community now and into the future,” stated AGM/Chief Financial Officer Carrie Corder. “Each year staff develops a budget that balances essential projects with increasing costs, while enhancing our water resource portfolio to ensure a reliable water supply for all customers.”
While drought restrictions were lifted over a year ago, the impacts of the statewide drought still drive water consumption projections. Overall consumption of potable (drinking) water has rebounded slightly; however it is anticipated that a certain amount of conservation may continue into the future due to changes customers have made in their watering habits. The 2018 Budget reflects an overall 13% increase in Water, Sewer, and Recycled Water Operating Fund revenues compared to last year’s budget.
CVWD is committed to financial stewardship, as demonstrated through its prudent debt management. CVWD works diligently to improve its credit rating which will lower the cost of future borrowings. Two credit agencies’ reports were recently issued, validating the District’s financial health. In May 2017, Moody’s rating services raised its rating of the District’s senior lien revenue bonds from Aa3 to Aa2; in June 2017, Fitch rating services affirmed CVWD’s AA rating for its subordinate lien debt, noting the District’s strong financial performance, disciplined rate setting by the Board of Directors, and a diverse and adequate water supply even under prolonged drought conditions.
CVWD prepares and adopts an annual budget as a means of projecting and estimating revenues, and identifying and planning expenses for the upcoming year. CVWD’s Operating and Capital Improvement Budget represents the District’s openness to government transparency by providing the public with pertinent financial information in a clear and easy-to-read format. The CVWD budget can be viewed online at CVWDwater.com.