HCWA Recognized by GFOA for Excellence in Financial Reporting
The Henry County Water Authority (HCWA) has received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for this past fiscal year, which marks the 14th consecutive year the utility has been recognized with this industry honor.
The news of this Certificate Achievement for Excellence in Financial Reporting follows similar good news earlier this year when the HCWA received an upgrade in its bond rating from Aa2 to Aa1 from Moody’s Ratings.
The GFOA Certificate of Achievement was presented to the HCWA for its Annual Comprehensive Financial Report for the fiscal year ending June 30, 2023. As noted by GFOA officials, the Certificate of Achievement is the highest form of recognition in governmental accounting and financial reporting, and this honor represents a significant accomplishment by a local government, authority, or agency and its management.
To receive the Certificate of Achievement, the HCWA Annual Comprehensive Financial Report was judged by an impartial panel, who determined that it met the highest standards of the program, which include demonstrating a constructive “spirit of full disclosure” to clearly communicate its financial story and motivate potential users and user groups to read the report.
The GFOA is an industry association that advances excellence in government finance by providing best practices, professional development, resources, and practical research for more than 21,000 members, who include local governments, authorities, agencies, and others.
This spring, the HCWA received an upgrade in its bond rating, as determined by Moody’s Rating. The Authority’s upgrade to Aa1 was the result of a significant and sustained improvement in the utility’s overall debt service coverage, which was 3.6x in fiscal year 2023.
This most recent upgrade in the HCWA’s bond rating also reflects the Authority’s large and diverse customer base with average wealth levels, management’s willingness to implement proper rate setting plans, and perhaps most importantly, growth in the tax base of Henry County in conjunction with a growing HCWA customer base. According to Moody’s Ratings, financial operations at the HCWA are expected to remain healthy due to consistently small but steady increases to water and sewer consumption charges.
“The recent bond rating upgrade is an acknowledgement of the superb job the Authority has done in managing the significant growth in Henry County over several decades, by continually updating its long-term capital improvement plan to not only identify needed infrastructure but to also identify funding sources for those projects,” says Tom Owens, Managing Director of Georgia Public Finance for Raymond James. “They do an excellent job of maintaining the overall health of the system, while balancing affordability for their customers. The Authority’s consistent business-like approach is reflected in this upgrade.”
Moody’s also notes that the HCWA could see its bond rating upgrade even further with the successful completion of its current capital improvement program, if the utility maintains its current exceptionally strong coverage and liquidity metrics.
“The Certificate of Achievement, as well as the upgrade in our bond rating, are significant honors for the Authority,” says Dave Peterson, HCWA Division Manager of Finance and Chief Financial Officer, who recently spoke on a panel about rate planning and pricing at the 10th annual Water Finance Conference. “The former reflects the hard work and dedication of our staff, especially our finance department, while the latter is a manifestation of the long-term planning and vision of our board, as well as their commitment to strong financial stewardship on behalf of our ratepayers.”
Caption for photo:
Dave Peterson, HCWA Division Manager of Finance and CFO, speaks to a panel of water industry professionals and chief executives during the recent 10th annual Water Finance Conference at The Water Tower in Duluth.
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Media Contact: Chris Wood, Ph.D.
P: 770-757-1681
E: chris@jwapr.com or john.wood@gcsu.edu