...The 'AAA' bond rating reflects Rancho California Water District (the district) strong financial profile and low net leverage, measured as net adjusted debt to funds available for debt service (FADS), within the framework of very strong revenue defensibility and low operating risks. The district has very low rates, resulting from healthy property tax revenues and a very favorable customer base. Operating costs are very low despite the trend of rising imported water costs along with flat water production and sewer flows. The district's lifecycle ratio is moderate but increasing. Net leverage stood at just 1.8x in fiscal 2019 and is expected to remain well under Fitch Ratings' 'aaa' financial profile threshold of 5.0x over the five-year horizon....
