News from EMWD

New year to begin with rate adjustments from EMWD

Perris, CA (December 9, 2005)--After discussing alternatives, the board of directors of Eastern Municipal Water District Nov. 16 agreed to adjust a number of rates beginning Jan. 1, 2006.

For most communities served by EMWD, water rates will reflect a $25 per acre-foot increase for imported water by Metropolitan Water District, as well as a 5.8 percent adjustment based on last year’s Consumer Price Index (CPI). EMWD’s expense to deliver fully treated MWD water for most areas will increase from $688.50 to $727.25 an acre-foot.

One acre-foot is 326,000 gallons, or enough water to serve two households for one year. Customers in portions of the San Jacinto Valley, which do not usually receive imported water, will see only the CPI adjustment.

In addition, the daily service charge for all water customers, an amount that pays for ongoing expenses related to the water system that do not vary with changes in customer demand, will reflect the same CPI percentage increase--$.253 to $.268 a day.

Typical homeowners will see their water bills rise by about $2.00 a month.

Sewer rates also will increase, reflecting costs associated with individual reclamation facilities in different communities. The increases will vary from $.030 a day in the San Jacinto Valley to $.041 a day in Temecula and Murrieta. On average, the monthly increase is about $1.00. Like water customers, sewer customers will also see their new rates reflected on bills mailed to them after Feb. 1, 2006

The other major adjustment will be for financial participation charges, the one-time fees paid by the developer upon completion of a new home and used by EMWD to build new facilities to support that new development. Since 2001, connection fee rates have been adjusted based on the Engineering News Record Construction Cost Index (ENR-CCI). This past year an updated study to reflect the current cost to buy into the water and sewer system facilities was conducted. This resulted in a water fee adjustment from $2,272 to $2,918, and from $3,843 to $4,185 for wastewater.

Recycled water rates were increased by 5.8 percent for agricultural users, while municipal recycled water users were adjusted by 10.5 percent. Future agricultural water rates will continue to be tied to the September CPI consistent with EMWD’s other annual rate increases for water and sewer rates.

A variety of other fee-for-service rates were reviewed and adjusted where appropriate due to changes in labor rates, overhead, materials and the time necessary to perform the activities. Types of fees reviewed include customer service, engineering, field services, maps and records, new business development, source control and other occasional fees.

See the following tables for water and sewer rates by community, and financial participation charges.

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EMWD is the freshwater, wastewater service and recycled water provider to a 555-square mile area from Moreno Valley southward along the I-215 corridor to Temecula and eastward to Hemet and San Jacinto. Approximately 550,000 people live and work in this area. In addition to its own water customers, EMWD supplements water to eight local water agencies and municipalities that have their own water departments. EMWD operates four water reclamation facilities and treats some 40 million gallons of wastewater daily. More information can be found at EMWD’s web site www.emwd.org.