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Posted on: July 6, 2018

Cucamonga Valley Water District Approves Two-Year Budget

Having a well-planned, detailed budget is a critical component in ensuring water for the 50,000 customers served by the Cucamonga Valley Water District. Each year staff proposes a budget that balances essential projects with increasing costs while enhancing our water resource portfolio to ensure a reliable water supply for all customers. The Cucamonga Valley Water District (CVWD) Board of Directors approved its two-year operating budget for fiscal years 2019 and 2020 of $77.7 million and $81.3 million respectively. The District’s Capital Improvement Budget for the next two years is $28 million, and includes water, wastewater and recycled water projects. The 2019 Budget reflects a 6% increase in Water, Sewer and Recycled Water Operating Fund revenue compared to last year’s budget.

CVWD is committed to providing Service Beyond Expectation while effectively managing its financial and natural resources. Prudent fiscal management and accountability are essential to ensuring adequate levels of funding for the District’s major capital projects. Included in the Capital Projects budget over the next two years are 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. 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.

“One of the most significant priorities reflected in our two-year budget is maximizing the use of all of our water supplies,” stated Assistant General Manager Carrie Corder. “During the drought, the District strategized to decrease our imported water supply to 25% of total production. Now that the drought emergency has ended, imported water is more available and affordable, and we are able to balance this source with local supplies to strengthen CVWD’s overall financial health and water resource portfolio.”

CVWD is committed to financial stewardship, as demonstrated through its prudent debt management. CVWD works diligently to maintain and/or improve its credit rating which will lower the cost of future borrowings. Two credit agencies’ reports were issued in April, validating the District’s financial health. Fitch rating services affirmed CVWD’s AA rating for its subordinate lien debt, and also issued an AA rating for new bonds issued in 2018. S & P rating services affirmed CVWD’s AA+ rating for its senior bonds, and AA for both its subordinate and newly issued bonds.

Also noteworthy, CVWD recently received the Certificate of Achievement for Excellence in Financial Reporting for its fiscal year 2017 Comprehensive Annual Financial Report (CAFR) for the 16th consecutive year. This Certificate of Achievement, awarded by the Government Finance Officers Association, is the highest form of recognition in the area of governmental accounting and financial reporting, and represents CVWD’s good governance and transparency. The CAFR is an important tool the District uses to communicate to customers about its finances and expenditures. CVWD’s Operating and Capital Improvement Budget, as well as the CAFR, represent the District’s openness to government transparency by providing the public with pertinent financial information in clear and easy-to-read formats. The latest Budget and CAFR can be viewed online at CVWDwater.com.

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