Post Date:11/17/2022 11:56 AM

Highlands Ranch Water & Sanitation District’s solid financial management is on display this month, with a strong rating outlook from Fitch Ratings and an upcoming public hearing to review the district’s 2023 proposed budget. Fitch Ratings affirmed the AA+ rating on Highlands Ranch Water’s $64.3 million water and wastewater revenue bonds, which were issued in 2019. In addition, Fitch has affirmed Highlands Ranch Water’s Issuer Default Rating (IDR) of 'AA+.'

Fitch's 'AA+' rating largely reflects Highlands Ranch Water’s extremely reliable revenue and very strong purchaser credit quality. While the district anticipates significant capital investment to address regulatory requirements and aging infrastructure in the coming years, it has maintained a positive financial outlook through responsible rate adjustments. Rate increases are expected to continue at a similar pace for several years to meet anticipated requirements. Despite the increases, water and wastewater rates for Highlands Ranch Water customers remain among the lowest in the Denver Metro area.

“Since Highlands Ranch Water’s formation more than 40 years ago, the district has always prided itself on having strong financial management,” said Stephanie Stanley, director of finance for Highlands Ranch Water. “Fiscal responsibility and strategic planning go hand in hand when investing in the system that provides reliable water and wastewater services to the community. The proposed 2023 budget and rates are structured to support Highlands Ranch Water in 2023 and into the future.”

A public hearing on the proposed budget and rates for 2023 will be held at the regularly scheduled Board of Directors meeting Nov. 28 at 6:30 p.m. The public is invited to attend the meeting either virtually or in person at the Hendrick Office Building, 62 Plaza Drive. A meeting agenda, including a Zoom link, will be posted on Highlands Ranch Water’s website the week prior to the meeting at centennialwater.org.

The proposed 2023 rates are scheduled to go into effect January 1, 2023. The impact of the new rates on a typical single-family customer’s annual bill is estimated to be $64, or a 6% increase from 2022. Rates recover the cost of operations and maintenance, including staff, treatment chemicals, utilities, and ongoing repair and maintenance of facilities, plus capital reinvestment, water acquisition and debt service.