Report 2015-102 Recommendation 7 Responses

Report 2015-102: Central Basin Municipal Water District: Its Board of Directors Has Failed to Provide the Leadership Necessary for It to Effectively Fulfill Its Responsibilities (Release Date: December 2015)

Recommendation #7 To: Central Basin Municipal Water District

To ensure that it continues to take steps to improve its financial condition and avoids additional costs due to downgrades of its debt credit ratings, the district should immediately create a formal debt management policy. This policy should clearly define its credit objectives and provide guidelines for suitable debt agreements. This policy should also require the district to periodically monitor its specific financial ratios, such as its debt coverage ratio, that are relevant to its credit rating.

60-Day Agency Response

Staff presented to the Board of Directors a debt management policy on December 21, 2015 and it was formally adopted. The policy has been fully implemented as of January 2016.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

All Recommendations in 2015-102

Agency responses received are posted verbatim.