Sound financial management

The Orange County Water District has a proven history of sound financial management, fiscal responsibility and efficiency. This is made possible through the board’s support of robust financial policies that encourage conservative fiscal management and long-term planning. Maintaining a strong financial portfolio helps the District better weather economic downturns, variations in water demand, major equipment failures and catastrophic events.

OCWD’s revenues are derived primarily from annual assessments on its 19 water retailers, who pump groundwater from the basin, and property taxes, both of which have proven to be stable over time. These stable revenues have helped OCWD earn high credit ratings.

Maintaining financial reserves and excellent credit ratings allows the District to access low-cost financing for water infrastructure projects and enhance the District’s ability to adequately manage and maintain its complex operations. Fitch Ratings recognizes OCWD’s commitment and the District has consistently earned a “AAA” rating. In addition to Fitch, OCWD has ratings of AAA from Standard & Poor’s, an Aa1 from Moody’s, and has received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association.

OCWD will continue to maintain strong financial policies that support its mission of providing an adequate, reliable and high-quality water supply to local water retailers at the lowest reasonable cost and in an environmentally responsible manner.

The OCWD annual budget report is drafted and approved by the District’s 10-member board of directors at a public meeting. The budget provides the financial plan to implement the District’s necessary programs, projects and work plan for the fiscal year. Please review the reports, organized by fiscal year, to learn more and view detailed budget information.

The Annual Comprehensive Financial Report is prepared following guidelines set forth by the Governmental Accounting Standards Board. State law requires that all special-purpose local governments publish these basic financial statements within six months of the close of the agency’s fiscal year.

Since 2008, the Government Finance Officers Association (GFOA) has recognized OCWD with the Certificate of Achievement for Excellence in Financial Reporting Program for superb financial accountability and reporting. The Program is GFOA’s highest form of recognition in the area of governmental accounting and financial reporting. Please review the Annual Comprehensive Financial Reports, organized by fiscal year, to learn more.