Budget Message / Highlights - Metropolitan Water Reclamation ...

METROPOLITAN WATER RECLAMATION DISTRICT OF GREATER CHICAGO
Bonded Debt Objectives
2009 BUDGET
Financial Policies,
Objectives
and
Accomplishments
To maintain or improve the District's Aaa, AAA, and AAA bond ratings from Moody’s Investor Services, Fitch IBCA, and
Standard & Poor’s Corporation, respectively.
To provide timely and cost-effective bonded debt financing.
To structure future debt service so as to provide a stable trend in future debt service tax levies.
Bonded Debt Accomplishments
Bond Rating History
In April 2001, Fitch IBCA upgraded the
District's outstanding General Obligation
Bonds to AAA from AA+ and Standard &
Poors Investors Services upgraded the
District's Bonds to AA+ from AA. In April
of 2002, Moody's Investor's Service
upgraded the District's Bonds to AAA from
AA1. For the July 2006 bond issue,
Standard & Poor’s also increased the
District’s rating to AAA.
The Illinois Legislature amended the
Metropolitan Water Reclamation District
Act to provide that the District must levy a direct annual tax to pay the principal and interest on indebtedness within 30 years
after contracting the debt, enabling the District to now issue debt for a maximum of 30 years after contracting the debt.
Previously, the District was allowed to issue debt for a maximum of 20 years. In addition, the District’s Act was amended to
extend non-referendum bonding authority from December 31, 2006 to December 31, 2016.
Financial and Accounting Policies
Accounting policies of the District conform to Generally Accepted Accounting Principles (GAAP) as applicable to
governments.
The basic accounting and reporting entity of the District is a "fund". The District's governmental funds are maintained on the
modified accrual basis of accounting. All governmental funds are accounted for on a spending or "financial flow" measurement
focus.
The only fiduciary fund of the District is the Pension Trust Fund. Pension Trust Fund assets and liabilities are accounted for on
the full accrual basis. Investments of the Pension Trust Fund are recorded at market value.
Property taxes, user charge revenue, and the personal property replacement tax are accrued to the extent that they are measurable
and available to satisfy liabilities of the reporting period.
An Internal Auditing function is maintained as an independent appraisal activity for the review of accounting, financial, and
other operations. It aids managerial control by measuring and evaluating the effectiveness of, and compliance with, District
policies, procedures, and other internal controls, as directed by the Executive Director. A two-year audit program is developed
and updated annually to perform this function.
Financial and Accounting Objectives
Moody’s Investor
Services
Fitch IBCA Standard & Poor’s
Corporation
1938-1944 Baa
1944-1968 A
1944-1968 A1
1968-1974 Aa
1974-1997 Aa2
1997-1999 Aa1 1995-1999 AA 1969-2001 AA
1999-2002 Aa1 1999-2001 AA+ 2001-2006 AA+
2002-present Aaa 2001-present AAA 2006-present AAA
District financial information is available through the Comprehensive Annual Financial Report, Budget Report, Grantor Agency
Reports, and supplementary information.
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