The long-term rating on Montecito Water District California’s series 2020A water revenue refunding bonds has increased to AA- from A+, S&P Global Ratings recently announced.

“The report references a stable outlook and access to water from the city of Santa Barbara Charles E. Meyer desalination plant (through the Water Supply Agreement beginning in 2022) as materially improving water resiliency through severe drought conditions and alleviating exposure to unpredictable water allocations from the State Water Project,” the water district said.

The rating also expresses confidence that the district will continue to produce solid and consistent financial results.

“For nearly a decade we’ve put tremendous effort into securing local, reliable water supplies and cementing regional collaboration,” said Ken Coates, board president.

“The improved bond rating is strong validation that the district is on the right path with both stewardship of water resources and its fiscal responsibility,” Coates said.

Numerous actions to increase local, reliable supplies in recent years have helped strengthen and diversify the district’s water portfolio and reduce dependence on the increasingly variable State Water Project deliveries.

In addition to participation in desalination, which secures monthly water deliveries from the city of Santa Barbara, the Water District has accumulated more than a year’s worth of water since it began a groundwater banking program in 2017.

During rainy years surplus State Water Project deliveries are conveyed to a groundwater bank and may remain stored until needed, for example under future drought conditions.