The Elsinore Valley Municipal Water District (EVMWD) Board of Directors approved a revised capacity fee schedule on April 10, aimed at ensuring future development is funded to support infrastructure buildout in step with community growth.
The vote passed narrowly, 3-2, with Vice President Harvey R. Ryan making the motion and Director Andy Morris seconding it. Directors Matthew Dobler and Darcy Burke voted against the change.
The updated fees will take effect in three phases over 18 months, with one-third taking effect on July 1, 2025, one-third on January 1, 2026, and the final one-third on July 1, 2026
Contractors will have six months from payment to install meters before the next scheduled rate increase takes effect, except for the last one in 2026, which is a three-month grace period.
“Unlike most neighboring cities that are nearly built out, EVMWD is only 35 percent developed,” President Chance Edmonson said. “As a contractor myself, I understand both sides of this decision. But we have to do what’s best to grow this area responsibly. The cost of materials, labor, and infrastructure has increased significantly over the last five years. We can’t afford to wait while inflation drives those costs even higher. This vote is about being prepared and paying for the projects that support this growth; growth pays for growth.”
To soften the impact of the transition, the district will use property tax revenue to temporarily offset the phased implementation. However, delaying the rollout date from July 1, 2024, to July 1, 2025, is projected to result in a $7.5 million loss in capacity fee revenue, according to EVMWD.
The new fee schedule is based on a full cost-of-service study and financial analysis conducted by the district’s independent rate consultant. The rates comply with state requirements and reflect the cost of growth-related infrastructure, ensuring existing customers are not subsidizing new development, EVMWD said.
“This approach ensures new development pays its fair share,” Vice President Harvey R. Ryan said. “The added demand on water, sewer, and infrastructure shouldn’t burden the customers already connected to our system. This protects existing residents who’ve already contributed and supports the financial stability of our district.”
For more information on the approved rates and infrastructure planning, visit www.evmwd.com.
