Moody's Assigns Hicksville Water District High Marks

HICKSVILLE, NY — Moody's Investor Service assigned Hicksville Water District's Bonds high marks this year, indicating that the district is in a strong financial position despite the current economic climate, HWD announced Tuesday.

Moody's granted the district an Aa1 bond rating in a July 8 report. The agency wrote that the high rating reflects the district's "well-sized and very affluent tax base that will remain consistent with the rating despite the current economic pressures." The rating also incorporates the district’s "very strong" financial position indicated by "exceptionally strong cash and reserve balances as a percentage of revenues," according to the report.

For years, the district has been managing its budgets in order to limit the impact of more than $70 million in infrastructure needed to treat for emerging contaminants, according to district officials. The position will allow the district’s residents to save hundreds of thousands of dollars on the $7 million bond, authorized in 2018, which goes toward fighting emerging contaminants.

“We are thrilled to have had Moody’s provide us with this high rating as it is reflective of this district’s responsible financial management,” HWD Chairman William Schuckmann said. “Our district’s high bond rating will keep leading to more improvements for infrastructure against emerging contaminants and ultimately help to minimize the financial impact to our residents for these required treatment projects.”

New proposed state regulations for the emerging contaminant 1,4-dioxane are expected to grow the district's annual budge by approximately 50 percent, according to HWD officials. While the district "wholeheartedly agrees" with the proposed regulation "as it will provide higher-quality water for residents for generations to come, it has created an unfunded mandate," the district wrote. The HWD will need to continue borrowing additional funding over the next several years to continue meeting and surpassing all updated State regulations.

“The safety of our residents is and will always be our foremost concern. Money or lack thereof was never going to stop us from starting these vitally important treatment projects,” Schuckmann said. “This pollution is not the fault of the water district or its residents, but we are unfortunately being saddled with picking up the tab. That does not sit well with this board and we are using every tool available and power at our disposal to ensure our residents are not held financially liable for this treatment.”

For more information on the Hicksville Water District, visit www.hicksvillewater.com or find the district on Facebook at facebook.com/HicksvilleWaterDistrict.