Water Works gets improved bond rating

By Mary Hood (Contact) | The Natchez Democrat

Published Saturday, May 23, 2009

NATCHEZ — Natchez Water Works was one of 18 entities nationwide to have its bond rating raised in the May audit by Standard & Poor’s.

It was the only entity in Mississippi to have its rating raised.

Natchez Water Works Superintendent David Gardner said every year any municipality or county that has a bond has to be audited.

This year, the Natchez Water Works’ $10.8 million bond from 1994 that built the Morgantown water plant received an upgrade.

Last year, the bond rating was an “A,” but now the rating has been bumped up to an “AA-.”

Gardner said the better rating was based upon several things — the ability to pay debt service, the ability to handle expansion and good solid management.

“Our debt service coverage is very good,” Gardner said, which is paid through water works revenue. “They think that we have pretty good cash to handle our debt service.”

Also, Gardner said The S&P commented on Natchez’s fair water rates.

“Our rate is very competitive, not too high, not too low. It’s where it needs to be,” Gardner said.

The city charges roughly $49 per 8,000 gallons consumed monthly.

And Natchez Water Works’ plans to add an additional elevated storage tank, which to the S&P proved to be a means to prepare for the future, Gardner said.

“That shows that we’re not waiting for someone to tell us you have to have it. We’re being progressive and taking care of our system,” he said.

Finally, the S&P viewed Natchez as having a firm grasp on management, Gardner said.

“It stems from good management at the water plant, good management at the sewer plant,” Gardner said.

He also said the maintenance staff and the office staff also run the operation smoothly and efficiently.

“We’re very proud of our organization. It’s definitely a team effort,” he said.

Not only is this a positive note for the water works, it also looks good citywide, Gardner said.

“When the city gets ready to borrow money, they’re going to look at the water works bond rating,” he said.

“Natchez should be proud that our water system is looked upon nationally as a good, well-run agency.”