Neighbor News
NOVATO SANITARY DISTRICT CREDIT RATING UPGRADE
Standard & Poor's Upgrades Novato Sanitary District Credit Rating to Near Highest Level
NOVATO—As result of a periodic financial review, Standard & Poor’s Ratings Services has upgraded Novato Sanitary District to AA- (stable) from A+ (stable), meaning the District has a very strong capacity to meet its financial commitments.
“We are pleased with the rating upgrade,” said District General Manager Sandeep Karkal. “It shows that we are managing our finances prudently, and that if we do decide to borrow on the open markets, we could obtain a favorable interest rate.
However, there is currently no plan to borrow additional funds. The District is planning to invest an average of about $2-3 million per year on sewer system improvements, and plans to pay for it with existing financial resources.
Find out what's happening in Novatofor free with the latest updates from Patch.
The ratings service noted that NSD’s financial profile included enhanced unrestricted reserves, and a developing track record of managing a more substantial debt load, which was used to fund a near-total rebuild of the wastewater treatment plant several years ago.
Other factors in the rating included the District’s: predominantly residential customer base that participates in the deep and diverse Bay Area economy; affordable service rates in the context of the area’s very strong income levels; ample system capacity; predictable future capital needs; and strong liquid assets.
Find out what's happening in Novatofor free with the latest updates from Patch.
NSD has also received the Certificate of Achievement for Excellence in Financial Reporting (CAFR) from the Government Finance Officers Association of the United States and Canada for the past three years.
For more information, visit the News & Documents / Press Releases and Articles area of the District’s website.
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Novato Sanitary District has been providing garbage collection, as well as sewage collection, treatment, disposal and recycling to properties in and around the City of Novato since 1949.
District facilities include: 200 miles of public sewers, 40 pump stations, a wastewater treatment plant and an 800-acre wetlands and pastureland supplied with recycled water.
For more information about the District, its services and how it protects the environment, check out our website at www.novatosan.com.
