DISTRICT FINANCES

As a governmental entity, EAWSD follows financial procedures established by the New Mexico Department of Finance & Administration, Local Government Division  (DFA-LGD).

 

The District is required to prepare a balanced budget for DFA approval prior to the beginning of each fiscal year, and it may not exceed that budget during the fiscal year without prior DFA approval. A budget that proposes deficit spending is a violation of NM statute and will not be approved by DFA.  

 

As the District is a governmental unit, it does not operate for profit. Any revenue unexpended at the end of each fiscal year is retained for the benefit of the District and used to improve its delivery infrastructure and assure water quality.  

Oversight and compliance

EAWSD's Current & Projected Debt Service Requirements - Borrowings through 2022

The District’s initial indebtedness for purchase of the utility was $13.695 million. Interest on the Bonds issued to finance the purchase is paid at 6%.

 

Approximately $986 thousand of the amount borrowed was spent on bond issuance costs, $508.5 thousand was set aside in a mandatory escrow account, which is the amount of the final revenue bond principal payment, and the balance of $1.304 million placed into an account whose funds were restricted for District capital projects (utility remediation and repair).  

The District has an annual debt service requirement of approximately $1.25 million, consuming between 36% and 40% of total District revenues.  

  • Revenue debt proforma shows planned revenue loan borrowings of $1.5MM annually over a
    5-year period (2018-2022) structured as level debt service.

     

  • The left axis shows debt service and the right axis shows coverage of proforma debt service from FY2016 net revenue (grown at 3% through 2019 reflecting planned rate increases and held constant thereafter).
     

  • Debt service coverage ratios exclude GO debt service repaid from ad valorem taxes.