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The system's financial performance has been historically solid, with above 2.0x DSC consistently since 2009, and 3.3x Fitch -calculated DSC in fiscal 2015. The county's conservative management maintains this positive coverage level as well as substantial cash reserves in an effort to guarantee available cash for unforeseen system needs. Fitch -calculated unaudited coverage for fiscal 2016 is expected to be 4.2x, and 3.7x and above through fiscal 2021 according to a management -provided financial forecast. Based on historic performance and limited capital and expenditure needs, Fitch expects that positive financial results will continue. Liquidity is extremely strong, with the system ending fiscal 2015 with more than $37 million in unrestricted cash on hand, equivalent to over 810 days of operating expenses. Unaudited fiscal 2016 results show an uptick in cash to over $43 million, equating to about 870 days on hand. LOW DEBT, MANAGEABLE CAPITAL NEEDS The system's low debt profile is a key credit strength. Debt per customer is just $380 in fiscal 2015, well below average compared to other similarly rated systems. Debt to net plant was also low at just 14% for the same period, and debt amortization is well above average with 100% of outstanding bonds retired within 10 years. The county's four-year $37 million CIP is expected to be funded entirely with grants, impact fees, assessments and existing cash. Historic capital spending since 2010 has been variable, with capital expenditures (CapEx) relative to the rate of annual depreciation averaging only 41% during that time. While Fitch views this level of CapEx as somewhat weak and possibly as an indicator of deferred maintenance, the system underwent substantial capital investment in 2008 to ensure long- term supply and capacity availability. The system's current and future capital needs are primarily to address area growth, with several intermittent larger projects that are ably paid for with existing and growing cash. In addition, management restricts $3.5 million of cash annually solely for R&R so that resources are always available to meet capital needs as they may arise. Fitch is comfortable with the level of capital investment based on the system's abundance of available cash, ample debt -issuance capacity, and affordable rate structure that would allow for additional revenue growth if necessary. LOW CUSTOMER CHARGES The average residential customer bill of $60 for combined service assuming 7,500 gallons of use is affordable at 1.5% of median household income (MHI). Rates should stay competitive as the county has a very manageable capital program that is expected to be funded with cash and connection fees. Rates have not been raised since 1999, and though management has no plans to raise them in the financial forecast, it is entitled to do so per a rate resolution should the necessity arise. ABUNDANT WATER SUPPLY AND SOUND INFRASTRUCTURE The county's water and sewer system provides services to a mostly residential customer base of approximately 47,000 water, and 27,000 sewer accounts as of fiscal 2015. There is no customer concentration, and despite recent economic and housing market weakness, the county's mostly residential customer base has been relatively stable. Water is supplied through various wells from the Floridan Aquifer, with treatment provided by one of two county -owned treatment facilities. The water treatment plants have a combined 20.1 million gallonsper day (mgd) of treatment capacity, which is more than sufficient to meet the system's average daily demand in fiscal 2015 of 9.2 mgd. Water use is regulated by the St. Johns Water P6