Page 63 - Yucaipa Valley Water District
P. 63
Director Memorandum 19-005
Date: January 15, 2019
Prepared By: Allison M. Edmisten, Chief Financial Officer
Subject: Presentation of the Continuing Disclosure Annual Report (CDAR)
Recommendation: That the Board receives and files the Continuing Disclosure Annual
Report (CDAR).
On December 17, 2014, the Board approved a policy for Disclosure Procedures Related to the
Issuance of Municipal Debt Obligations [Director Memorandum 14-103]. This policy outlines the
annual obligations related to outstanding debt. The District currently has outstanding Water
System Revenue Bonds, Series 2015A. Each year after the Audited Financial Statements are
completed, District staff files the Continuing Disclosure Annual Report for these outstanding
bonds.
As part of the debt covenant for these revenue bonds, the District shall maintain a debt coverage
ratio of 1.10 or higher. This ratio is calculated by comparing the annual net revenue to the annual
debt service payment. The ratio calculated using the 2017-18 Audited Financial Statements has
dropped from 1.43 in the prior year to 0.76. This ratio does not result in the District being in
default, however, District staff is required to recommend solutions in the current fiscal year to
bring the debt coverage ratio back to a minimum of 1.10.
Attached is the CDAR report that was filed December 20, 2018.
Yucaipa Valley Water District - January 15, 2019 - Page 61 of 184
