Santa Margarita Water District (SMWD) has once again earned high marks for financial strength and responsible fiscal management. On May 18, 2026, Fitch Ratings affirmed the District’s “AA” credit rating on its outstanding General Obligation and Revenue Bonds — an important independent assessment that reflects the District’s strong financial position, prudent planning, and long-standing commitment to serving customers responsibly.

Fitch cited SMWD’s “very strong” financial profile and revenue defensibility for Revenue Bonds, as well as a “very strong repayment source” for General Obligation Bonds, which are supported by dedicated property taxes and a history of nearly 0% unpaid taxes.

This approach allows SMWD to responsibly spread the cost of critical infrastructure projects across many years, rather than placing the financial burden entirely on current customers. These investments support the reliability and resilience of the water, recycled water, and wastewater systems that serve the community every day.

The “AA” rating also provides independent, third-party validation that SMWD is managing public resources responsibly and maintaining the financial stability needed to adapt to future challenges, economic shifts, and infrastructure needs.

At SMWD, fiscal responsibility is about more than balancing budgets — it is about protecting long-term community interests, maintaining transparency and accountability, and making thoughtful decisions that support reliable service for generations to come.

Photo: Santa Margarita Water District Finance and Accounting Teams.

Learn more about Santa Margarita Water District at SMWD.com/News.