Financial Reports

Although not specifically required by the Administrative Code, the general powers of the General Manager and the mandates of best practices obligate the District to conduct an annual audit of District financial activities each fiscal year. 

An independent auditor performs an annual audit. The District’s current auditor is Nigro & Nigro.  

Comprehensive Annual Financial Report 

The Government Finance Officers Association of America (GFOA) has awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its Comprehensive Annual Financial report (CAFR) for ten consecutive years.  In this manner, the District has produced a CAFR that captures all accepted accounting procedures and all applicable legal requirements.  

FY 2015-2016    Comprehensive Annual Financial Report 
FY 2014-2015    Comprehensive Annual Financial Report 
FY 2013-2014    Comprehensive Annual Financial Report 
FY 2012-2013    Comprehensive Annual Financial Report 
FY 2011-2012    Comprehensive Annual Financial Report 
FY 2010-2011    Comprehensive Annual Financial Report 
FY 2009-2010    Comprehensive Annual Financial Report 
FY 2008-2009    Comprehensive Annual Financial Report 
FY 2007-2008    Comprehensive Annual Financial Report 
FY 2006-2007    Comprehensive Annual Financial Report 
FY 2005-2006    Comprehensive Annual Financial Report 
FY 2004-2005    Comprehensive Annual Financial Report 

Other Financial Documents 

Central Basin Investment Policy
Monthly Investment Report 
 

Debt Coverage

What is the Debt Coverage Ratio (DCR)?

The DCR is a contractually-obligated standard of financial measurement applied to the District following the District’s issuance of Certificates of Participation (COPs) debt in 2010. The District is required to achieve each fiscal year a minimum 115% DCR.  This means that the District must manage its operating budget each year to achieve net revenue in amounts at least 115% greater than all of its debt service costs. The DCR is similar to the “pre-qualification” methodology used by real estate professionals.  In these cases, the intent is to determine the excess of monthly income over the monthly mortgage payment.

Expressed mathematically, the DCR is:

                                                      DCR = Net Revenue

                                                                  Debt Service

What is Central Basin’s Responsibility?

When the District issued $37,935,000 in COPs to refinance prior debt and finance capital improvements relating to the recycled water system in May 2010, the Official Statement and Installment Purchase Agreement agreed to by the District obligated it to achieve a DCR of at least 115%.  In this manner, the Installment Purchase Agreement, in the "Amount of Rates and Charges" subsection, declares that:

"...to the fullest extent permitted by law, the District will fix, prescribe and collect rates and charges for the Water Service which will be at least sufficient to yield during each Fiscal Year Net Revenues equal to one hundred fifteen percent (115%) of Debt Service for such Fiscal Year. "

The District’s promise to achieve a DCR is a form of security for the borrowing.  

Rating Agency Reports 

Moody’s Credit Rating Agency:  Moody’s current rating of the District’s credit is A1.  The rating was downgraded on October 15, 2015 by one level.  The former rating was Aa3.  The downgrade was primarily driven by Moody’s opinion that future debt coverage ratios will be lower due to water conservation efforts (in response to the California drought) that may create decline in operating revenues, thereby reducing the debt coverage ratio.   

To view the latest copy of Moody's Credit Rating, please click here. 

Standard & Poor’s (S&P):   S&P current rating of the District's credit is A-.  The rating was downgraded on June 30, 2017. To view the copy, click here

Debt Management

Click here to view Central Basin’s Debt Management Policy.

Click here to view the latest Debt Management Report. 

The Government Finance Officers of America (GFOA), in a Best Practice adopted in 2012, recommends that state and local governments adopt comprehensive debt management policies.  These policies should reflect local, state and federal laws and practices, and should be reviewed periodically (and updated if necessary) by elected officials. 

On December 21, 2015, the Central Basin Board of Directors adopted the District’s Debt Management Policy.  The Policy provides guidance on the full range of debt management, including evaluating debt issuance options; maintaining appropriate assets for present and future needs; promoting sound financial management through staff reporting requirements; protection of the District’s credit rating; and adherence to the legal use of District financing authority through internal controls.  In addition, the Policy’s practical, user friendly elements require the continual use of long-range financial projections and obligates District staff to publish a variety of interim reports.