SANTA MARIA — Fitch Ratings has affirmed its AA rating for the city of Santa Maria’s Water and Wastewater Revenue Refinancing Bonds.
This rating reflects the agency’s opinion of the system’s stable revenues to cover expenses and a robust water supply, according to a news release from the city.
Fitch Ratings observed that Santa Maria has monthly combined water and sewer rates — about $117 — that are affordable for the vast majority of the population. The company’s findings included that the additional debt isn’t expected to be issued for capital needs and that the city will fund capital improvement projects on a pay-as-you-go basis.
Fitch Ratings also said the city has a robust water supply through groundwater wells and imported supplies from the State Water Project.
The city of Santa Maria issued $50.1 million in taxable revenue refunding bonds in June 2012 to secure a lower interest rate of 4.36% and achieve in-cash flow savings of approximately $2 million per year.
To see Santa Maria’s budget and financial statements, go to www.cityofsantamaria.org.
— Gerry Fall