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HomeMy WebLinkAboutItem No. 01 - EVMWD Presentation Page 1 of 1 REPORT TO CITY COUNCIL To: Honorable Mayor and Members of the City Council From: Jason Simpson, City Manager Prepared by: Jason Simpson, City Manager Date: October 24, 2023 Subject: Elsinore Valley Municipal Water District Proposed Sewer and Water Shortage Surcharges Recommendation Receive a presentation by EVMWD. PROPOSED SEWER RATE ADJUSTMENT & WATER SHORTAGE SURCHARGES October 2023 AGENDA •EVMWD Introduction •Proposed sewer rate adjustments review •Proposed water shortage surcharges review •What’s next? EVMWD AT A GLANCE 159,000 customers 47,000 water connections 38,000 sewer connections 75% of water supplies imported from the Colorado River & Northern CA 25% from local wells and reservoirs PROPOSED SEWER RATE ADJUSTMENTS PROPOSED RATE ADJUSTMENT HEARING November 9, 2023, at 4pm. Consider new sewer rates and water shortage surcharges EVMWD Boardroom WHAT IS DRIVING SEWER RATES? Electricity rates have increased 37% over the last 2 years. EVMWD must expand the Regional Treatment Plant which is at 75% capacity The cost of chemicals needed for wastewater treatment has risen. Additional staff is required to operate expanded facilities. SAMPLE BILL Sewer is the only rate increasing. Water rates remain the same. Current Charges Proposed Charges WHERE YOUR SEWER DOLLAR GOES All District costs are driven by state and federal regulations. RARE Program •Rate Assistance for Residents of Elsinore Valley •Qualifying customers are eligible for low-income rate assistance LIHWAP •Low-Income Household Water and Wastewater Program (LIHWAP) •Community Action Partnership of Riverside County (CAP Riverside) •Payment assistance towards water and wastewater bills UTILITY ASSISTANCE SUMMARY Rate adjustments proposed due to increased costs of energy, chemicals, regulatory compliance, and staffing Minimize rate impact on customers Reduced contract services Grants & low interest loans Utility Assistance Hearing to be held on November 9 at 4pm If approved, rates would go into effect January 1, 2024. PROPOSED WATER SHORTAGE SURCHARGES WHY IS THIS NEEDED? Water Shortage Contingency Plan •Adopted in 2021 •Used to respond to foreseeable and unforeseeable water shortages •Examples include drought, extended power outage, or a catastrophic event. Revenue Shortfalls With lower water sales, water agencies see major drop in revenues needed to operate and maintain infrastructure. Surcharges Allow us to recover lost revenue. A Proven Tool Surcharges have been implemented by water agencies across California. Maintaining Service Helps ensure we can continue providing reliable water service during droughts or other disasters. HOW TO PARTICIPATE Learn more at www.evmwd.com. Submit comment letters. Attend the public hearing on November 9. More information on the proposed adjustments, including the rate study, is available for review at the EVMWD office or on our website CONTACT US