Bond Investors
In October 2023, Zone 7 issued bonds to finance the Chain of
Lakes Ion Exchange PFAS Treatment Facility which will remove
per- and polyfluoroalkyl substances from local groundwater.
In 2018, Zone 7 issued bonds to help fund upgrades at the Del
Valle Water Treatment Plant, including the addition of ozone
treatment now in operation to improve the efficiency, safety,
taste and odor of our water treatment services.
Our sound financial practices and commitment to fiscal
responsibility make Zone 7 a smart investment for our bond
holders. We provide annual financial statements and continuing
disclosures in this section, in compliance with all bond issuance
regulations, and as part of our commitment to transparency.
The reports below, combined with the information provided in our
bi-annual budget, financial documents and water rates sections,
give our bond investors a complete financial picture of the
agency and the confidence they need to rest assured their
investment is secure.
Financial and Ratings Reports
The following reports were submitted during the current or
previous fiscal year. Please note that information included in
any reports is current only as of the date it was published.
Also, the availability of a report on this website does not mean
that changes have not been made. For example, portions of the
obligations may have been refunded and are no longer outstanding,
or information may be out of date. Updates may be published under
various circumstances, particularly for variable rate debt.
Additional information may be found on the Municipal Securities
Rulemaking Board’s Electronic Municipal Market
Access (EMMA) website. Searching by CUSIP number is the
easiest way to find information on the EMMA website. The base
CUSIP number(s) for the Agency’s debt are:
- Livermore Valley Water Financing Authority Water Revenue
Bonds, 2023 Series A – Base CUSIP 53833P
- Livermore Valley Water Financing Authority Water Revenue
Bonds, 2018 Series A – Base CUSIP 53833P
Official Statements
Ratings Reports
Our credit ratings reports are issued by third party credit
rating agencies and reflect Zone 7’s credit worthiness as a debt
issuer. On October 11, 2023, S&P Global Ratings
(S&P) announced it has raised its long-term rating on the
Agency’s outstanding 2018 Series A Water Revenue Bonds to ‘AAA’
from ‘AA+’. ‘S&P also assigned a ‘AAA’ to the Agency’s
2023 Series A Water Revenue Bonds, with a stable outlook. AAA’ is
the highest rating assigned by S&P. Fitch Ratings affirmed
its ‘AA+” rating of the Agency and revised the rating outlook to
‘Positive’ from ‘Stable’.
These ratings reflect the Agency’s strong credit quality based on
the following factors:
- exceptionally strong water supply position, storing a
significant amount of water in wet years for usage in dry years
- very strong revenue source characteristics including
fixed-charge rate structure, drought surcharge and regular Board
review and implementation of rate adjustments
- robust cash position and formal reserve policy
- very low leverage despite potential future debt
financing of water supply reliability projects
On October 1, 2024, Fitch Ratings reaffirmed Zone 7’s bond rating
at ‘AA+’ with a positive outlook. In the report, Fitch
notes Zone 7’s exceptionally low leverage within the framework of
very strong revenue defensibility and strong operating risk
profiles. The positive outlook reflects Fitch’s expectation
that additional debt will be issued over the five-year period,
but leverage will likely remain exceptionally low.
You can read our full ratings reports here:
Other Important Financial Information
