Page 59 - Yucaipa Valley Water District

Workshop Memorandum No. 17-015 Page 4 of 4

assessed on service-area residents, the large majority of which is allocated to the district.
Under Fitch's standard usage assumption of 7,500 gallons per month, rates are affordable
at approximately 0.8% of median household income (MHI). Although actual usage is
much higher in the region, customer bills are competitive with other regional providers.

GENERALLY STABLE ECONOMIC PROFILE

From a wealth and unemployment standpoint, the city of Yucaipa's local economic metrics
are generally on par or slightly worse than the nation's. At 5.4% in November 2016, the
city's unemployment rate ranked slightly higher than the state average (5.0%) and
national (4.5%) levels. County income levels are mostly consistent with the national
average but lower than the state average. New connections averaged 175-180 over the
last two years, which is a solid improvement over the numbers realized during the last
recession. The service area is approximately 50% built out, allowing for room to meet
projected growth.

Contact:

Primary Analyst
Major Parkhurst
Director
+1-512-215-3724
Fitch Ratings, Inc.
111 Congress Avenue
Austin, TX 78701

Secondary Analyst
Andrew Ward
Director
+1-415-732-5617

Committee Chairperson
Doug Scott
Managing Director
+1-512-215-3725

Media Relations: Alyssa Castelli, New York, Tel: +1 (212) 908 0540, Email:
alyssa.castelli@fitchratings.com.

Additional information is available at 'www.fitchratings.com'

Source: https://www.fitchratings.com/site/pr/1018105

Yucaipa Valley Water District - January 31, 2017 - Page 58 of 68