Bond credit ratings are third-party assessments of an issuer's creditworthiness, risk, and ability to repay its debt. Please see the latest MWRD Fitch report and MWRD S&P report.

"Investment Grade" is the highest tier of all credit ratings; municipal bonds in this category are viewed as having a relatively low risk of default. The MWRD's bonds are rated at the top of this tier, with the rating agencies citing our sound financial management, reliable revenue streams, low operating costs, and an improving debt leverage ratio.

The MWRD has reliably provided affordable service to its customers, with fees paid for MWRD services falling significantly under the industry norm during each of the past 10 years.  Source: NACWA's Cost of Clean Water Index

Rainy Day Long-Term Reserve balances protect the MWRD’s ability to continue operations in any financial environment. Due to sound management practices, long-term reserves did not need to be accessed during the 2008-2009 financial crisis or the COVID-19 pandemic. However, we did utilize these reserves to partially fund a $43.0 million prepayment of State Revolving Fund Loans in 2022, which will provide $12.7 million of future interest savings over 15 years.

These balances will be maintained at approximately their current levels going forward.

The majority of the MWRD’s current Limited Tax Bonds have been conservatively structured to be repaid prior to 2038. We have ample borrowing capacity below the Debt Service Extension Base limit to fund future capital projects through additional debt issuances, which are estimated to increase the debt amounts in years 2038 and later.

Property taxes are the MWRD's main source of revenue. The Net Levy Amount assumes a 3.5% loss in collection rate on each year's gross levy; this anticipated amount is always collected in full and is typically exceeded during the first year of collections.

^The reduction in first-year collections of 2021 levies was caused by the delay of the second installment due date to 12/30/22. Late payments were received in January and February, and collections exceeded the 2021 Net Levy Amount on 2/22/23.

The MWRD’s Pension Funding Policy was developed in conjunction with the MWRD Retirement Fund and designed to better provide for the long-term financial health of the Fund while balancing the interests of employees, retirees, taxpayers, and the MWRD. The MWRD's goal is to contribute annually to increase the funded ratio to 100% by 2050 to ensure retirement benefits as promised to its employees. The MWRD’s Retirement Fund funded ratio has been trending upwards the last 10 years; see its financial reports for more information.

The MWRD Retiree Healthcare Trust Fund was established in 2007 to recognize the contributions made to the MWRD by its employees, through healthcare benefits for qualifying retirees and their eligible spouses and dependents. In 2014, the MWRD committed to providing an annual advance funding contribution of $5 million from 2015 through 2026, at which point the funded ratio is expected to reach 100%. The Trust's funded ratio has been trending upwards the last 10 years; see its financial reports for more information.

*Actuarial valuations were performed only on the odd years prior to 2017; therefore, valuations for 2012, 2014, and 2016 report the same percent funding as 2011, 2013, and 2015, respectively.