LAFCO
Western County Region
Read the report at Local Agency Formation Commissions ↗
LAFCO COMMISSION
ADOPTED 5-23-2019
Countywide
Water and
Wastewater
Municipal
Service Review
Riverside Local Agency
Formation Commission
LAFCO 2019-01-1,2,3,4,5
Volume 1
Western County Region
Water and Wastewater
Agencies
City of Corona, City of Hemet, City of Norco, City of Perris, City of Riverside, City of San Jacinto,
Eastern Municipal Water District, Edgemont Community Services District, Elsinore Valley Municipal
Water District, Home Gardens County Water District, Home Gardens Sanitary District, Jurupa
Community Services District, Lake Hemet Municipal Water District, Rancho California Water
District, Rubidoux Community Services District, San Bernardino Valley Municipal Water District,
Temescal Valley Water District, West Valley Water District and Western Municipal Water District
Prepared For:
Riverside Local Agency Formation Commission
___________________________________________________________
COMMISSIONERS
Phil Williams, Special District Member
Stephen Tomanelli, Vice Chair, Public Member
Kevin Jeffries, County Member
Jeff Hewitt, County Member
Michael Vargas, City Member
Steve Sanchez, Chair, City Member
Nancy Wright, Special District Member
ALTERNATE MEMBERS
Randon Lane, City Member
V. Manuel Perez, County Member
Jim Love, Public Member
LAFCO STAFF
Crystal Craig, Interim Executive Officer
PREPARED BY PROJECT RESOURCE SPECIALISTS TEAM
Harry Ehrlich, SDA, Principal
Bob Aldrich
Brian Brady, P.E.
Elliot Mulberg
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Countywide Water and Wastewater Municipal Services Review Volume 1
Riverside Local Agency Formation Commission Western County Region Water and Wastewater Agencies
Contents
Acronyms and Abbreviations ........................................................................................................................... vii
1. Executive Summary ................................................................................................................................... 1
2. Introduction ............................................................................................................................................. 17
Table 1 – Riverside County Agencies and Services Reviewed ................................................................. 19
Exhibit 1 – MET Service Area Map .......................................................................................................... 20
Table 2 – Mutual Water Companies - Western County Subregion ......................................................... 22
3. Riverside County Overview ...................................................................................................................... 23
Table 3 – Population by County .............................................................................................................. 23
Table 4 – Employment by County ........................................................................................................... 24
4. Western County – Water and Wastewater Agencies .............................................................................. 26
City of Corona ................................................................................................................................................ 27
Exhibit 2 – City of Corona........................................................................................................................ 28
Table 5 – City of Corona Population Projections, 2015-2040 ................................................................. 30
Table 6 – City of Corona Normal Year Water Supply and Demand Projections, 2020-2040 .................. 31
Table 7 – City of Corona Single Dry Year Water Supply and Demand Projections, 2020-2040 .............. 32
Table 8 – City of Corona Financial Information ...................................................................................... 34
Table 9 – City of Corona Residential Water Rates (per HCF) .................................................................. 36
Table 10 – City of Corona City Council Members ................................................................................... 37
City of Hemet ................................................................................................................................................. 39
Exhibit 3 – City of Hemet ........................................................................................................................ 40
Table 11 – City of Hemet Normal Year Water Supply and Demand Projections, 2020-2040 ................. 43
Table 12 – City of Hemet Single-Dry Year Water Supply and Demand Projections, 2020-2040 ............ 43
Table 13 – City of Hemet Financial Information ..................................................................................... 47
Table 14 – City of Hemet City Council Members .................................................................................... 50
City of Norco .................................................................................................................................................. 51
Exhibit 4 – City of Norco ......................................................................................................................... 53
Table 15 – City of Norco Population Projections, 2015-2040 ................................................................. 55
Table 16 – City of Norco Normal Year Water Supply and Demand Projections, 2020-2040 .................. 56
Table 17 – City of Norco Single-Dry Year Water Supply and Demand Projections, 2020-2040.............. 57
Table 18 – City of Norco Budget Information ......................................................................................... 59
Table 19 – Adopted Water Rates* – City of Norco, 2017-2021 .............................................................. 61
Table 20 – Adopted Sewer Rates* – City of Norco, 2017-2021 .............................................................. 61
Table 21 – Five-Year CIP Source of Funds – Sewer Fund 147 ................................................................. 62
Table 22 – Sewer CIP Projects - FYs 2018-2022 ...................................................................................... 62
Table 23 – Five-Year CIP Source of Funds – Water Fund 144 ................................................................. 62
Table 24 – Water CIP Projects - FYs 2018-2022 ...................................................................................... 63
Table 25 – City of Norco City Council Members ..................................................................................... 64
City of Perris .................................................................................................................................................. 65
Exhibit 5 – City of Perris .......................................................................................................................... 66
Table 26 – City of Perris Financial Information ....................................................................................... 71
Table 27 – City of Perris Council Members ............................................................................................. 75
City of Riverside ............................................................................................................................................. 76
Exhibit 6 – City of Riverside .................................................................................................................... 77
Table 28 – City of Riverside (RPU) Water Service Area Population Projections, 2015-2040 .................. 80
Table 29 – City of Riverside Normal Year Water Supply and Demand Projections, 2020-2040 ............. 81
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Table 30 – City of Riverside Single-Dry Year Water Supply and Demand Projections, 2020-2040 ......... 81
Table 31 – City of Riverside Financial Information ................................................................................. 84
Table 32 – Adopted Water Rates* – City of Riverside, 2019-2023 ......................................................... 86
Table 33 – Adopted Sewer Rates* – City of Riverside, 2015-2019 ......................................................... 86
Table 34 – City of Riverside City Council Members ................................................................................ 88
City of San Jacinto .......................................................................................................................................... 89
Exhibit 7 – City of San Jacinto ................................................................................................................. 90
Table 35 – City of San Jacinto Budget Information ................................................................................. 95
Table 36 – City of San Jacinto City Council Members ............................................................................. 98
Eastern Municipal Water District .................................................................................................................. 99
Exhibit 8 – Eastern Municipal Water District ........................................................................................ 102
Table 37 – EMWD Wholesale Population Projections, 2015-2040 ....................................................... 104
Table 38 – EMWD Retail Population Projections, 2015-2040 .............................................................. 104
Table 39 – EMWD Groundwater Production, 2011-2015 ..................................................................... 108
Table 40 – EMWD - Minimum Supplies: Wholesale and Retail Total, 2016-2018 ................................ 112
Table 41 – EMWD Wholesale Normal Year Supply and Demand Projections, 2020-2040 ................... 112
Table 42 – EMWD Retail Normal Year Supply and Demand Projections, 2020-2040 ........................... 113
Table 43 – EMWD Wholesale: Single Dry Year Supply and Demand Projections, 2020-2040 .............. 113
Table 44 – EMWD Financial Statements, FY 2015-FY 2017 .................................................................. 116
Table 45 – Eastern Municipal Water District Board of Directors .......................................................... 121
Edgemont Community Services District ...................................................................................................... 122
Exhibit 9 – Edgemont Community Services District .............................................................................. 123
Table 46 – ECSD Financial Statements, FY 2015-FY 2017 ..................................................................... 126
Table 47 – Edgemont Community Services District Board of Directors ............................................... 129
Elsinore Valley Municipal Water District ..................................................................................................... 131
Exhibit 10 – Elsinore Valley Municipal Water District ........................................................................... 133
Table 48 – EVMWD Population Projections, 2015-2040 ...................................................................... 135
Table 49 – EVMWD Groundwater Production, 2014-2018................................................................... 136
Table 50 – EVMWD - Minimum Supplies, 2016-2018 ........................................................................... 137
Table 51 – EVMWD Normal Year Supply and Demand Projections, 2020-2040 .................................. 137
Table 52 – EVMWD Single Dry Year Supply and Demand Projections, 2020-2040 .............................. 138
Table 53 – EVMWD Financial Statements, FY 2015-FY 2017 ................................................................ 141
Table 54 – Elsinore Valley Municipal Water District Board of Directors .............................................. 145
Home Gardens County Water District ......................................................................................................... 147
Exhibit 11 – Home Gardens County Water District .............................................................................. 148
Table 55 – HGCWD Population Projections, 2015-2040 ....................................................................... 150
Table 56 – HGCWD Minimum Supplies, 2016-2018 ............................................................................. 151
Table 57 – EVMWD Financial Statements, FY 2015-FY 2017 ................................................................ 152
Table 58 – Home Gardens County Water District Board of Directors .................................................. 155
Home Gardens Sanitary District .................................................................................................................. 156
Exhibit 12 – Home Gardens Sanitary District ........................................................................................ 157
Table 59 – HGSD Population Projections, 2015-2040 ........................................................................... 159
Table 60 – HGSD Financial Statements, FY 2015-FY 2017 .................................................................... 160
Table 61 – Home Gardens Sanitary District Board of Directors ............................................................ 163
Jurupa Community Services District ............................................................................................................ 164
Exhibit 13 – Jurupa Community Services District ................................................................................. 166
Table 62 – JCSD Population Projections, 2015-2040 ............................................................................ 168
Table 63 – JCSD Groundwater Production, 2011-2015 ........................................................................ 169
Table 64 – JCSD - Minimum Supplies, 2016-2018 ................................................................................. 170
Table 65 – JCSD Normal Year Supply and Demand Projections, 2020-2040 ........................................ 171
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Table 66 – JCSD Single Dry Year Supply and Demand Projections, 2020-2040 .................................... 171
Table 67 – JCSD Financial Statements – Enterprise Funds, FY 2015-FY 2017 ....................................... 173
Table 68 – JCSD Water Rates*, 2015-2019 ........................................................................................... 175
Table 69 – JCSD Sewer Rates*, 2015-2019 ........................................................................................... 176
Table 70 – Jurupa Community Services District Board of Directors ..................................................... 177
Lake Hemet Municipal Water District ......................................................................................................... 179
Exhibit 14 – Lake Hemet Municipal Water District ............................................................................... 180
Table 71 – LHMWD Population Projections 2015-2040 ....................................................................... 182
Table 72 – LHMWD Groundwater Production, 2011-2015 ................................................................... 183
Table 73 – LHMWD - Minimum Supplies, 2016-2018 ........................................................................... 184
Table 74 – LHMWD Normal Year Supply and Demand Projections, 2020-2035................................... 184
Table 75 – LHMWD Single Dry Year Supply and Demand Projections, 2020-2035 .............................. 184
Table 76 – LHMWD Financial Statements, FY 2015-FY 2017 ................................................................ 186
Table 77 – Lake Hemet Municipal Water District Board of Directors ................................................... 189
Rancho California Water District ................................................................................................................. 191
Table 78 – Normal Year Supply and Demand Comparison, 2020-2040 ................................................ 191
Exhibit 15 – Rancho California Water District ....................................................................................... 192
Table 79 – RCWD Population Projections, 2015-2040 .......................................................................... 194
Table 80 – RCWD Groundwater Production, FYs 2014-2018 ................................................................ 196
Table 81 – RCWD - Minimum Supplies, 2016-2018 .............................................................................. 198
Table 82 – RCWD Normal Year Supply and Demand Projections, 2020-2040 ...................................... 198
Table 83 – RCWD Single-Dry Year Supply and Demand Projections, 2020-2040 ................................. 198
Table 84 – RCWD Financial Statements, FY 2016-FY 2018 ................................................................... 201
Table 85 – RCWD Major Capital Projects, FY 2018-2019 – FY 2022-2023 ............................................ 204
Table 86 – Rancho California Water District Board of Directors .......................................................... 206
Rubidoux Community Services District ....................................................................................................... 208
Exhibit 16 – Rubidoux Community Services District ............................................................................. 209
Table 87 – RCSD Population Projections, 2015-2040 ........................................................................... 211
Table 88 – RCSD Groundwater Production, 2011-2015 ........................................................................ 211
Table 89 – RCSD - Minimum Supplies, 2016-2018 ................................................................................ 212
Table 90 – RCSD Normal Year Supply and Demand Projections, 2020-2040 ....................................... 212
Table 91 – RCSD Single Dry Year Supply and Demand Projections, 2020-2040 ................................... 212
Table 92 – RCSD Financial Statements, FY 2015-FY 2017 ..................................................................... 214
Table 93 – Rubidoux Community Services District Board of Directors ................................................. 217
San Bernardino Valley Municipal Water District ......................................................................................... 219
Exhibit 17 – San Bernardino Valley Municipal Water District ............................................................... 220
Table 94 – San Bernardino Valley Municipal Water District Population Projections, 2015-2040 ........ 222
Table 95 – Valley District Normal Year Water Supply and Demand Projections, 2020-2040 ............... 223
Table 96 – Valley District Single-Dry Year Water Supply and Demand Projections, 2020-2040 .......... 224
Table 97 – SBVMWD Financial Statements, FY 2015-FY 2017 .............................................................. 225
Table 98 – SBVMWD Board Members .................................................................................................. 229
Temescal Valley Water District .................................................................................................................... 230
Exhibit 18 – Temescal Valley Water District ......................................................................................... 231
Table 99 – TVWD Population Projections, 2015-2040 .......................................................................... 233
Table 100 – TVWD Projected Groundwater Production, 2015-2040 ................................................... 234
Table 101 – TVWD –- Minimum Supplies, 2016-2018 .......................................................................... 234
Table 102 – TVWD Normal Year Supply and Demand Projections, 2020-2040 .................................... 235
Table 103 – TVWD Single Dry Year Supply and Demand Projections, 2020-2040 ................................ 235
Table 104 – TVWD Financial Statements, FY 2015-FY 2017 ................................................................. 236
Table 105 – Temescal Valley Water District Board of Directors ........................................................... 240
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West Valley Water District .......................................................................................................................... 241
Exhibit 19 – West Valley Water District ................................................................................................ 242
Table 106 – West Valley Water District Population Projections, 2015-2040 ....................................... 244
Table 107 – West Valley Water District Groundwater Production, 2011-2015 ................................... 245
Table 108 – West Valley Water District - Minimum Supplies, 2016-2018 ............................................ 246
Table 109 – WVWD Normal Year Supply and Demand Projections, 2020-2040 .................................. 246
Table 110 – WVWD Single Dry Year Supply and Demand Projections, 2020-2040 .............................. 246
Table 111 – WVWD Financial Statements, FY 2016-FY 2018 ................................................................ 248
Table 112 – West Valley Water District Board of Directors .................................................................. 253
Western Municipal Water District ............................................................................................................... 254
Exhibit 20 – Western Municipal Water District .................................................................................... 255
Table 113 – WMWD Retail Population Projections, 2015-2040 ........................................................... 257
Table 114 – WMWD Wholesale Population Projections, 2015-2040 ................................................... 257
Table 115 – WMWD Total Groundwater Production, 2011-2015 ........................................................ 258
Table 116 – WMWD Wholesale Normal Year Supply and Demand Projections, 2020-2040 ............... 259
Table 117 – WMWD Single Dry Year Supply and Demand Projections, 2020-2040 –
Wholesale Supply ............................................................................................................... 259
Table 118 – WMWD Financial Statements, FY 2015-FY 2017 ............................................................... 263
Table 119 – WMWD Adopted Water Rates (2018) - Single Family Residential* .................................. 266
Table 120 – WMWD Adopted Sewer Rates (2018) - Single Family Residential .................................... 266
Table 121 – WMWD “Top Ten” Current CIP Projects ........................................................................... 267
Table 122 – Western Municipal Water District Board of Directors ...................................................... 268
5. Municipal Service Review Determinations - Western County ............................................................... 270
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Acronyms and Abbreviations
AFY Acre Feet per Year
BNSF Burlington Northern - Santa Fe
CAFR Comprehensive Annual Financial Report
CalPERS California Public Employees Retirement System
CDA Chino Desalter Authority
CIP Capital Improvement Program/Plan
CIWQS California Integrated Water Quality System
CKH Act Cortese-Knox-Hertzberg Reorganization Act of 2000
DUC Disadvantaged Unincorporated Community
EDU Equivalent Dwelling Unit
EIR Environment Impact Report
EMWD Eastern Municipal Water District
ERP Emergency Response Plan
ERRP Enhanced Recharge and Recovery Program
EVMWD Elsinore Valley Municipal Water District
GASB Governmental Accounting Standards Board
IRRP Integrated Recharge and Recovery Program
JCSD Jurupa Community Services District
JPA Joint Powers Authority
LAFCO Local Agency Formation Commission
LHMWD Lake Hemet Municipal Water District
LHMWD Lake Hemet Municipal Water District
MET Metropolitan Water District of Southern California
MG Million Gallons
MGD Million Gallons per Day
MHI Median Household Income
MOA Memo of Authorization
MSR Municipal Services Review
NPDES National Pollutant Discharge Elimination System
OPEB Other Post-Employee Benefits
PEPRA Public Employees’ Pension Reform Act
PVRWRF Perris Valley Regional Water Reclamation Facility
RCSD Rubidoux Community Services District
RCWD Rancho California Water District
RPU Riverside Public Utilities Department
RTP Regional Transportation Plan
RWQCP Regional Water Quality Control Plant
RWRF Regional Water Reclamation Facility
SARCCUP Santa Ana River Conservation and Conjunctive Use Program
SBVMWD San Bernardino Valley Municipal Water District
SCADA Supervisory Control and Data Acquisition
SCAG Southern California Associations of Governments
SR State Route
SRRRA Santa Rosa Regional Resources Authority
SRWRF Santa Rosa Water Reclamation Facility
SSMP Sewer System Master Plan
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SWRCB State Water Resources Control Board
TVRWRF Temecula Valley Regional Water Reclamation Facility
UCR University of California, Riverside
UP Union Pacific
UWMP Urban Water Management Plan
WMWD Western Municipal Water District
WRCRWA Western Riverside County Regional Wastewater Authority
WVWD West Valley Water District
WWTP Wastewater Treatment Plant
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1. Executive Summary
The Countywide Water and Wastewater MSR Study focuses on 12 cities and 32 special
districts (29 independent districts and 3 County Service Areas) for a total of 44 public agencies
which currently provide water and/or sewer services to residents within Riverside County. For
ease of presentation, the agencies are divided into three separate reports by sub-region:
1) Western County (Volume 1), 2) Pass/Mountain Area (Volume 2), and 3) Coachella/Eastern
County (Volume 3).
This report (Volume 1) is focused on the Western County sub-region only. The 6 cities and
13 special districts considered in Volume 1 include:
• City of Corona
• City of Hemet
• City of Norco
• City of Perris
• City of Riverside
• City of San Jacinto
• Eastern Municipal Water District
• Edgemont Community Services District
• Elsinore Valley Municipal Water District
• Home Gardens County Water District
• Home Gardens Sanitary District
• Jurupa Community Services District
• Lake Hemet Municipal Water District
• Rancho California Water District
• Rubidoux Community Services District
• San Bernardino Valley Municipal Water District
• Temescal Valley Water District
• West Valley Water District
• Western Municipal Water District
Municipal Service Review Determinations
The Riverside Local Agency Formation Commission (LAFCO) is required to conduct periodic
reviews of each service provider, and to adopt determinations addressing current service
levels and the ability of each agency to continue to provide adequate services into the future.
Specifically, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000
requires that LAFCO review municipal services before updating spheres of influence (SOIs),
and to prepare a written determination addressing each of the following:
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1. Growth and population projections for the affected area.
2. The location and characteristics of any disadvantaged unincorporated communities
within or contiguous to the sphere of influence.
3. Present and planned capacity of public facilities, adequacy of public services, and
infrastructure needs or deficiencies including needs or deficiencies related to sewers,
municipal and industrial water, and structural fire protection in any disadvantaged,
unincorporated communities within or contiguous to the sphere of influence.
4. Financial ability of agencies to provide services.
5. Status of, and opportunities for, shared facilities.
6. Accountability for community service needs, including governmental structure and
operational efficiencies.
7. Any other matter related to effective or efficient service delivery, as required by
commission policy.
Sphere of Influence Determinations
This report does not include analyses of agency spheres of influence or make
recommendations regarding potential sphere amendments. This report could, however, be
used as background and support information should Riverside LAFCO decide to pursue
specific agency sphere changes in the future.
MSR Approach and Review Opportunities
A collaborative approach has been used throughout the preparation of this MSR. Multiple
opportunities were provided for input from the 44 public agencies. Initially, draft statistical
profiles of each agency were developed and provided to each agency and LAFCO staff for
review and comment. Throughout September through November 2018, individual Draft agency
reports were completed and distributed to each agency and LAFCO for additional review and
comment.
Distribution of this Public Review Draft of the MSR Study, which incorporates all agency and
LAFCO comments received to date, provides another opportunity for public agencies, LAFCO,
and the general public to review and comment on the MSR Draft report. A Final Draft MSR
Study is anticipated to be completed by May 2019 which will allow a third opportunity for
affected agencies to review and provide comments. In addition, a public hearing will be
conducted by LAFCO to consider the Draft and Final versions of the MSR Study, allowing
additional opportunities for comment before the Commission.
City and Special District Summaries
The following provides an overview of the recommended MSR determinations on an agency-
by-agency basis:
City of Corona: The City provides both water and sewer services both within and outside its
corporate limits. (Home Gardens County Water District and Home Gardens Sanitary District
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are located within the City’s SOI, and portions of both districts are with the City’s boundary.)
The City of Corona has approximately 168,574 residents and is nearing buildout. The City of
Corona appears to have adequate water and sewer system capacity to meet the needs of
existing and future residents. The ratios of unrestricted reserves for both the City’s water fund
and sewer fund reflect a negative balance and are not typical for enterprise fund services; it
appears that the City utility has been operating utilizing restricted funds to offset the impact
that negative economic factors might have had over the past ten years. However, with the
rates revised in 2014, both the water and sewer funds are projected to generate sufficient
revenues to cover operating costs, build working capital reserve, fund a rate stabilization
reserve and provide for capital investment in water and sewer infrastructure. No alternative
government structure options were identified for further consideration at this time.
City of Hemet: The City supplies potable water within a 5.25-square-mile service area located
mostly within the central part of the incorporated City. (Lake Hemet Municipal Water District is
located within a portion of the City’s SOI.) The City is estimated to be home to approximately
81,868 residents. Hemet is projected to grow to a population of 169,636 by 2030. The source
water supply (groundwater) is larger than demand in all years, and the City is not expected to
have any supply shortfalls during normal water years or during single-dry water years.
However, replacement of deteriorating or inadequate water lines may be needed to ensure the
efficient provision of water supplies over time. The City owns and operates a wastewater
collection system and has an agreement with Eastern Municipal Water District for treatment of
all wastewater generated within the City of Hemet. No capacity issues were identified. The City
has been in difficult financial times for several years. Cost containment actions have been
taken over the past two to four years to reduce deficit spending that drew down unrestricted
funds to a negative balance. The City audit notes a $1,000,000 reserve for emergency
contingency but no unrestricted funds are available to meet this identified need at this time. All
other funds of the City are in restricted or committed categories at this time other than the
Water Fund and Housing Fund, which are operated as proprietary funds. No alternative
government structure options were identified for further consideration at this time.
City of Norco: The City is the sole water purveyor for the residents and businesses of Norco.
The City also provides sewer collection service, but treatment is performed through the
Western Riverside County Regional Wastewater Authority and the City of Corona. The City’s
current population is projected at 26,882 and is expected to increase by 12 percent (or 3,410
residents) by 2040. Both the City’s water and sewer infrastructure systems are aging.
Currently, it is estimated that the City has annual funding gap of $4.5 million in governmental
infrastructure and facilities (not just water and sewer). Recent water and sewer rate
adjustments will help fund increases in operating costs, capital replacement projects, lower
water sales and the need for emergency rate stabilization funds. No immediate or long-term
capacity issues were identified for either water or sewer, and no alternative government
structures were identified at this time.
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City of Perris: The Eastern Municipal Water District (EMWD) provides and distributes potable
water throughout all but a small portion of the City and its sphere of influence. The City’s Water
Department owns and maintains water lines in two water systems. The City of Perris
population is currently 77,837 and is expected to reach 84,881 by 2030. In November 2017,
Perris voters approved a ballot measure (Measure H) authorizing the sale of the City’s two
water systems to Liberty Utilities for $11.5 million. The water systems are currently in debt and
have experienced annual operating deficits. The $11.5 million received by the City will be used
to retire debt related to the water systems and upgrade the City’s park system. The sale
process is still underway with PUC review expected in early 2019. Until the sale is finalized,
operation and ownership of the water systems remain with the City. EMWD owns and
maintains the sanitary sewer system serving most of the City of Perris and its sphere of
influence. No capacity issues for water or sewer were identified. No alternative government
structure options were identified for further consideration at this time.
City of Riverside: The Riverside Public Utilities Department (RPU) is a municipally-owned
utility that provides water to majority of City residents, and the Riverside Public Works
Department operates a wastewater collection, treatment and disposal system that serves most
of the City. A portion is served by Eastern Municipal Water District. Riverside ranks as the 12th
most populous city in California. The City’s population is currently 325,860 and is expected to
reach 383,077 at buildout. No capacity issues were identified for either water or sewer
services. The ratios of unrestricted reserves for both the water and sewer funds reflect an
appropriate balance. Sewer and water rates were raised in 2014 and 2018, respectively, and
are projected to generate sufficient revenues to cover operating costs, build working capital
reserve, fund a rate stabilization reserve and provide for capital investment in water and sewer
infrastructure. When looking at the overall City’s maintenance and replacement needs for
aging governmental infrastructure and other capital facilities (not just water and sewer), the
City estimates an annual funding gap of $1 billion for five years. No alternative government
structure options were identified for further consideration at this time.
City of San Jacinto: The City’s 2018 population to be estimated to be 48,146. The City
provides water service to the urbanized area surrounding the downtown area only which
currently comprises a population of approximately 18,000. The remainder of the City’s
population receives water service from either the Eastern Municipal Water District or the Lake
Hemet Municipal Water District. The City provides wastewater collection service to a much
larger service area than its water service area. All sewage generated within the City
wastewater system is provided to the Hemet/San Jacinto Regional Water Reclamation Facility
(RWRF), which is operated by EMWD, for treatment. No capacity issues have been identified.
The City has experienced significant impacts from the recent economic downturn since 2005.
In the most recent budget presentation for the City Council in June 2018, the City Manager
reports several new initiatives to promote civic and economic growth. Careful fiscal controls
have reduced deficit spending but have not restored a balanced budget. No alternative
government structure options were identified for further consideration at this time.
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Eastern Municipal Water District: Eastern Municipal Water District (EMWD) serves water
through 148,473 connections to approximately 546,000 customers and sewer service through
245,013 connections to approximately 816,000 customers. In 1951, it was annexed into the
Metropolitan Water District of Southern California (MET) and gained access to a supply of
imported water from the Colorado River Aqueduct (CRA). Today, EMWD remains one of
MET’s 26 member agencies, one of two in Riverside County, and also receives water from
Northern California through the State Water Project (SWP) in addition to deliveries through the
CRA. EMWD is located in western Riverside County, east southeast of the cities of Riverside
and east of the I-15 freeway corridor. The 542 square mile service area includes seven cities
(or portions of cities) including: Moreno Valley, portions of Riverside, Perris, portions of
Menifee, portions of Beaumont, San Jacinto, Hemet, and portions of Temecula) in addition to
unincorporated areas in the County of Riverside. Between 2015 and 2040, the District’s retail
service population is expected to increase in service population by approximately 106,000
connections or 392,900 residents. No supply or capacity issues for sewer or water service
have been identified. The District is participating in the development of a comprehensive
Regional Groundwater Management Plan to plan for future groundwater supplies. Overall, the
District water, sewer and CIP funds are considered stable and self-sustaining for operational,
capital and debt service activities. Rate increases had been implemented over the last several
years to accommodate increased expenditures for maintenance and capital improvements.
Based upon water rights and infrastructure resources, there does not appear to be interest by
the agencies in considering alternative government service structures at this time, although
District staff are participating with the City of Murrieta and several local water agencies in a
LAFCO-coordinated special study of water service to the Murrieta retail area that could provide
recommendations for some service area adjustments.
Edgemont Community Services District: ECSD currently provides sewage collection
services for approximately 8,670 residents and serves portions of City of Riverside and
Moreno Valley. The District’s service area is generally built-out, and no significant increase in
population is anticipated in the foreseeable future. All wastewater produced within the District’s
service area is treated at the Riverside Regional Water Quality Control Plant (RRWQCP) via
existing connections. RRWQCP is projected to have sufficient treatment capacity to treat
Edgemont flows for the foreseeable future. Overall, the District sewer and illumination funds
are considered stable and self-sustaining for operational, capital and debt service activities,
although some cyclical spending has occurred periodically due to fluctuations in costs of the
City of Riverside treatment contract. According to the District, a sewer rate increase was
implemented on July 1, 2018 due primarily to increased cost of treatment. LAFCO’s 2005 MSR
stated that there may be cost savings associated with a reorganization of ECSD with the City
of Riverside, although because ECSD boundaries are evenly split between the City of
Riverside and the City of Wildomar, such a reorganization would present challenges. No
alternative government structure options are considered in this report at this time. EMWD and
WMWD overlap portions of ECSD.
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Elsinore Valley Municipal Water District: EVMWD provides water and sewer services to a
service area comprised of the Cities of Lake Elsinore, portions of Canyon Lake, Wildomar,
portions of the City of Murrieta and unincorporated Riverside County and Orange County.
EVMWD’s 2015 service population is estimated to be 149,300. By 2040, the service population
is projected to increase to 238,300. EVMWD utilizes water supplies from three primary sources
for drinking water supply: Imported water via WMWD, groundwater wells and surface or lake
water from Canyon Lake Reservoir when it is available. The WMWD and EVMWD boundaries
overlap. Currently almost all (90 percent) wastewater flow within the EVMWD service area is
treated by District facilities (10 percent goes to SRRRA facility). All wastewater flows are used
as a recycled water source, whether it is delivered to customers as a non-potable supply or
used as replenishment water for Lake Elsinore. No supply or capacity issues for sewer or
water service have been identified. Overall, the District’s water, sewer and CIP funds are
considered stable and self-sustaining for operational, capital and debt service activities. Rate
increases had been implemented over the last several years to accommodate increased
expenditures for maintenance and capital improvements. Based upon water rights and
infrastructure resources, there does not appear to be increased interest in considering
alternative government service structures at this time.
Home Gardens County Water District: The District provides water to a 232.5-acre portion of
the unincorporated area of Home Gardens, adjacent to the City of Corona within portions of
the City’s SOI. In 2015, the HGCWD service population was estimated at 3,100. By 2040, the
service population is expected to increase by 40 connections or 200 residents. HGCWD
utilizes water supplies from one primary source for drinking water supply: imported water via
the City of Corona. Since the HGCWD area is essentially built out, no measurable increase in
supply or demand is expected in the coming years unless infill or changes in area zoning are
made. Overall, the District water funds are considered stable and self-sustaining for
operational, capital and debt service activities. The District does not have a website. To
promote transparency and accountability as well as allowing public oversight of District
activities, a basic website should be a high priority for the District. Because the District
overlaps the Home Gardens Sanitation District boundary, it could be of benefit to consider
discussions between the two agencies for functional and possibly governance consolidation.
Home Gardens Sanitary District: The primary mission of the HGSD is for providing sewer
collection and disposal for businesses and approximately 8,000 residents within District
boundaries served through 2,390 connections. The District provides service within portions of
the City of Corona’s SOI. The HGSD does not expect to have substantial growth in its service
area in the next few years. The District does not own its own treatment facilities but is a
member of the Western Riverside County Regional Wastewater Authority (WRCRWA) and has
recently contracted to expand its capacity in the plant to 1 MGD. Overall, the District sewer
fund is considered stable and self-sustaining for operational, capital and debt service activities.
The cost of sewage treatment has increased as a result of the District purchasing additional
capacity in the regional treatment plant in Corona. Rate increases had not been implemented
over the previous several years up until 2015 to accommodate expenditures for maintenance
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and setting aside reserves for capital improvements. The District does not have a website. To
promote transparency and accountability as well as allowing public oversight of District
activities, a basic website should be a high priority for the District. Based upon the location of
the District overlapping the HGCWD, it could be of benefit to consider discussions between the
two agencies for functional and possibly governance consolidation.
Jurupa Community Services District: The Jurupa Community Services District (JCSD)
provides water, sewer and other services to a population of approximately 134,520 residents
and commercial/industrial facilities located within the City of Eastvale and a portion of the City
of Jurupa Valley. Between 2015 and 2035, the District’s service population is expected to
increase by 31,880 residents. The District’s primary water sources are local groundwater
basins. To ensure a reliable water supply for both existing and future residents, the District
participates in a joint power authority (JPA) with neighboring agencies called the Chino Basin
Desalter Authority (CDA). Local groundwater supplies include treated and untreated water
pumped from the Chino Basin for potable and nonpotable uses and groundwater pumped from
the Riverside Basin for non-potable use. The District's sewer system is split between three
separate service areas that each discharge to different Regional Treatment Plants. No supply
or capacity issues for sewer or water service have been identified. Overall, the District water
and CIP funds are considered stable and self-sustaining for operational, capital and debt
service activities, although some minor deficit spending has occurred periodically due to
planned capital improvement projects and conservation directed by the state. Rate increases
had been implemented over the last several years up until 2018 to accommodate expenditures
for maintenance and capital improvements. Based upon water supply and infrastructure
resources, there does not appear to be interest by the District in considering alternative
government service structures at this time.
Lake Hemet Municipal Water District: Lake Hemet Municipal Water District (LHMWD)
provides potable water, irrigation water and sewer collection services to residents in parts of
the cities of Hemet, San Jacinto and Lake Hemet campground, and potable water to the
community of Garner Valley and surrounding unincorporated areas. Currently the District
serves water to a population of approximately 58,000 and provides sewer service to a
population of approximately 52,000. No supply or capacity issues for sewer or water service
have been identified. Overall, the District water and CIP funds are considered stable and self-
sustaining for operational, capital and debt service activities, although some minor deficit
spending has occurred periodically due to planned capital improvement projects and
conservation directed by the state. Rate increases had been implemented over the last several
years up until 2015 and are currently under consideration for the Garner Valley community, to
accommodate expenditures for maintenance and capital improvements. Due primarily to the
rural diversity of much of the District and infrastructure in place, no alternative government
structure options were identified for further consideration at this time.
Rancho California Water District: Rancho California Water District (RCWD) provides potable
water, irrigation water, recycled water, sewer collection, and treatment services to residents of
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the cities of Temecula and portions of Murrieta and potable and irrigation water to some
surrounding unincorporated area for the Western Municipal Water District (WMWD) in the
Rainbow and Rock Mountain areas. Between 2015 and 2040, the District’s service population
is expected to increase by approximately 5,700 connections, or 22,096 residents. The majority
of this growth is expected to be in the two cities (Murrieta and Temecula) within the District’s
service area. Wastewater collected by the District is conveyed to a collection system owned
and operated by the Santa Rosa Regional Resources Authority (SRRRA) for ultimate
treatment at the Santa Rosa Water Reclamation Facility (SRWRF). No supply or capacity
issues for sewer or water service have been identified. Overall, the District water, sewer, and
Capital Improvement Project (CIP) funds are considered stable and self-sustaining for
operational, capital, and debt service activities, although some minor deficit spending has
occurred periodically due to planned capital improvement projects and conservation directed
by the state. Rate increases have been implemented over the last several years to
accommodate expenditures for maintenance and capital improvements. Based upon water
rights and infrastructure resources, there does not appear to be increased interest in
considering alternative government service structures at this time. Additionally, District staff is
aware of and provided information on a number of properties in the area with interest in
annexing to the District at this time. The District has agreed to participate in a study of service
alternatives with the City of Murrieta and other local water agencies for a LAFCO-coordinated
special study of water service to the Murrieta Retail Area.
Rubidoux Community Services District: The Rubidoux Community Services District (RCSD)
was organized in 1952 and serves residents within a portion of Jurupa Valley for the purpose
of providing various public services including the construction, operation, repair and
maintenance of water and wastewater system facilities. The District's current boundaries
encompass an area of approximately 7.7 square miles, with approximately 7.5 square miles in
Riverside County and 0.2 square miles (128 acres) in San Bernardino County. Between 2015
and 2035, the District’s service population is expected to increase in service population by
approximately 1,900 connections or 9,194 residents. RCSD utilizes water supplies from only
one source, groundwater. The District’s sewer treatment is provided by the City of Riverside.
No supply or capacity issues for sewer or water service have been identified. Overall, the
District water, sewer and CIP funds are considered stable and self-sustaining for operational,
capital and debt service activities, although some minor deficit spending has occurred
periodically due to planned capital improvement projects and conservation directed by the
state. Rate increases had been implemented over the last several years and again in 2017 to
accommodate expenditures for maintenance and capital improvements. The District reports
that the cost of wastewater treatment has increased to the point that the District is studying the
alternative of placing its own treatment plant back in service. Based upon water supply rights
and infrastructure resources, there does not appear to be interest by the District in considering
alternative government service structures at this time. The proximity and overlap of
municipalities of the Jurupa Community Services District and the District might lend to a future
consideration of reorganization alternatives in the future as SOI and any annexation reviews
are conducted.
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San Bernardino Valley Municipal Water District: The San Bernardino Valley Municipal
Water District (Valley District or SBVMWD) was formed in 1954 as a regional agency to plan a
long-range water supply for the San Bernardino Valley. The San Bernardino Valley Municipal
Water District (SBVMWD) was formed in 1954 as a regional agency to plan a long-range water
supply for the San Bernardino Valley. The District serves a total population of about 700,000,
almost all located in San Bernardino County. Within Riverside County, the District includes
service to approximately 700 residents in the Reche Canyon community and a small portion in
the general Aqua Mansa area. Between 2015 and 2040, overall District growth is expected to
increase by approximately 26.7 percent, or 184,649 residents. SBVMWD’s primary sources of
water are from local water supplies (surface and groundwater), imported water, and recycled
water. The District anticipates adequate supplies available to meet projected demands for
years 2020 to 2040 under normal year and single dry year conditions. Overall, the District’s
water and CIP funds are considered stable and self-sustaining for operational, capital and debt
service activities, although some deficit spending has occurred periodically due to planned
capital improvement projects and conservation directed at retail agencies by the state. No
alternative government structure options were identified for further consideration at this time.
Temescal Valley Water District: The Temescal Valley Water District was incorporated on
December 27, 1965 as the Lee Lake Water District to provide water and wastewater services
to the area known as Temescal Valley north of Lake Elsinore and south of the City of Corona.
Between 2015 and 2030, the District’s service population is expected to increase modestly in-
service population by approximately 1,400 connections or 4,900 residents. The District’s
primary water source for potable water customers is imported from the Metropolitan Water
District via the Western Municipal Water District (WMWD). Wastewater treatment is provided
by the District-owned Temescal Valley Water Reclamation Facility’s tertiary plant. No supply or
capacity issues for sewer or water service have been identified. Overall, the District water and
CIP funds are considered stable and self-sustaining for operational, capital and debt service
activities, although some minor deficit spending has occurred periodically due to planned
capital improvement projects and conservation directed by the state. Rate increases had been
implemented over the last several years and again in 2017 to accommodate expenditures for
maintenance and capital improvements. While the District lies within the SOI of the City of
Corona relative to future development considerations, based upon water supply and
infrastructure resources for wastewater treatment, there does not appear to be interest by the
District in considering alternative government service structures at this time.
West Valley Water District: West Valley Water District (WVWD) is a County Water District
that provides retail water service only. WVWD’s service area is divided into northern and
southern sections by the central portion of the City of Rialto. The District’s service area
overlaps five political jurisdictions: the cities of Jurupa Valley, Rialto, Fontana and Colton and
the unincorporated areas of San Bernardino County (including the community of Bloomington).
Only a small area (358.36 acres) served by WVWD is located within Riverside County.
Between 2015 and 2040, the District’s overall service population is expected to increase in
service population by approximately 11,000 connections or 35,407 residents. No supply or
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capacity issues have been identified. Overall, the District’s water and CIP funds are
considered stable and self-sustaining for operational, capital and debt service activities,
although some deficit spending has occurred periodically due to planned capital improvement
projects and conservation directed by the state. Rate increases had been implemented over
the last several years up until 2015 to accommodate expenditures for maintenance and capital
improvements. Based upon water rights and infrastructure resources, and the majority of the
District being in San Bernardino County, there does not appear to be interest in considering
alternative government service structures at this time.
Western Municipal Water District: Western Municipal Water District (WMWD) is a wholesale
and retail water agency and also provides sewer service in a limited area. WMWD remains
one of MWD’s 26 member agencies. Western’s total service area covers 527 square miles, of
which 118 square miles are included in its retail service area which includes portions of the
City of Corona, portions of the City of Riverside, the unincorporated areas around Lake
Mathews, portions of the City of Murrieta, and unincorporated Riverside County south of the
City of Temecula in the Rainbow and Rock Mountain areas. Between 2015 and 2035, the
District’s service population is expected to increase in service population by approximately
9,700 connections (using 3.94 persons per connection) or 38,234 residents. Overall, the
District water, sewer and CIP funds are considered stable and self-sustaining for operational,
capital and debt service activities, although some minor deficit spending has occurred
periodically due to planned capital improvement projects and conservation directed by the
state. Rate increases had been implemented over the last several years to accommodate
expenditures for maintenance and capital improvements. Based upon established water rights
adjudications and infrastructure resources, there does not appear to be interest in considering
alternative government service structures at this time unless financial or service efficiencies
could be identified. The District has agreed to participate in a study of service alternatives with
the City of Murrieta and other local water agencies for a LAFCO-coordinated special study of
water service to the Murrieta Retail Area.
Municipal Service Review Determinations - Western County
1. Growth and population projections for the affected area
Projections of growth provided by the agencies, Census data, Urban Water Management
Plans, Sewer Master Plans and other resources indicate that growth will generally occur
throughout Riverside County’s Western County Region over the next 20 years. High
growth areas include the Cities of Hemet and Riverside, the Eastern Municipal Water
District, Elsinore Valley Municipal Water District and San Bernardino Valley Municipal
Water District. Only two agencies, Edgemont Community Services District and Home
Gardens County Water District, are projected to experience no or very limited population
growth.
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2. Location and characteristics of any disadvantaged unincorporated communities
within or contiguous to the sphere of influence
Within the Western County Region, Riverside LAFCO has identified a number of
disadvantaged unincorporated communities (DUCs) within or contiguous to agency
spheres of influence. All identified DUCs are listed within the agency summaries (Section
4) for future reference. Currently, identified DUCs are provided water and sewer service
by existing agencies through contract or have the opportunity to connect to such service
in the future should homeowners elect to do so. The following agencies have DUCs in or
adjacent to their SOI.
Eastern MWD/Hemet area:
• Donald Street/California Avenue, west of the City of Hemet
• Roseland Mobile Home Park
• E. Stetson Avenue/S. San Jacinto Street
• E. Acacia Avenue
• Columbia Street/Mayberry Avenue
• So. Dartmouth Street/Mayberry Avenue
• Ridge area
• New Chicago Avenue/E. Acacia Avenue
• Mountain View Mobile Home Park
• Valle Vista area
• Georgia Avenue/HWY 74 area
Perris area:
• Una Street/Alexander Street- Mead Valley
• Mead Valley North
• Luckens Lane/ West San Jacinto Avenue
• Mead Valley – South
Additionally, in the Temecula area, there is one DUC adjacent to the SOI in the
Pechanga area but outside the service area of water facilities.
Elsinore Valley Municipal Water District/Lake Elsinore area:
• Warm Springs
• Lakeland Village
• El Cariso area
• Meadowbrook area
Home Gardens County Water District area:
DUCs identified, but none within the District’s SOI (which is coterminous).
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Home Gardens Sanitary District area:
DUCs identified, but none within the District’s SOI (which is coterminous).
Lake Hemet Municipal Water District/City of Hemet:
• E. Stetson Avenue/S. San Jacinto Street
• E. Acacia Avenue
• Columbia Street/Mayberry Avenue
• So. Dartmouth Street/Mayberry Avenue
• Ridge area
• New Chicago Avenue/E. Acacia Avenue
• Mountain View MHP
• Valle Vista area
• Georgia Avenue/HWY 74 area
Western MWD:
• Home Gardens community adjacent to City of Riverside and Corona
• El Cerrito – East
• Highgrove – West
• Highgrove – East
There are no DUCs identified within or adjacent to the Western MWD SOI.
3. Present and planned capacity of public facilities, adequacy of public services, and
infrastructure needs or deficiencies, including needs or deficiencies related to
sewers, municipal and industrial water, and structural fire protection in any
disadvantaged, unincorporated communities within or contiguous to the sphere of
influence
Based on expected supplies from Metropolitan and the San Bernardino Valley Municipal
Water District, and through data and reports supplied by the agencies for local water
supplies, the water service providers within the Western County Region have
demonstrated in plans to have adequate water to meet future needs. Wastewater
providers, through upgrading existing facilities and constructing new facilities, can also
meet future wastewater needs within the region. The agencies adequately generally
address infrastructure needs and deficiencies through master plans, Capital Improvement
Plans and other long-range planning documents. As stated above, identified DUCs in the
Western County Region are currently provided water and sewer service or have the
opportunity to connect to such services in the future. Several of the agencies utilize
regional or shared facilities for water and wastewater services and coordinate planning
for future facilities.
The City of Hemet has stated that replacement of deteriorating or inadequate water lines
may be needed to ensure the efficient provision of water supplies over time.
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The City of Norco plans to address both the City’s water and sewer infrastructure
systems that are significantly aging.
4. Financial ability of agencies to provide services
The agencies prepare comprehensive annual budgets. The agencies maintain annual
Capital Improvement Plans, and maintain adequate and appropriate reserves. For most
of the agencies within the Western County Region, the amount of reserves held is
matched to CIP and other infrastructure improvements. All agencies reviewed reported
unqualified audits prepared in accordance with generally accepted accounting standards.
5. Status of, and opportunities for, shared facilities
There is extensive agency collaboration within the Western County Region. Excess
capacity, facilities and staff are made available through cooperative agreements
whenever possible. The agencies increase opportunities for shared facilities through joint
powers agreements, inter-ties, service agreements and industry groups. Examples of
cooperative programs are listed below by agency:
City of Corona: Formal agreements for sharing park and recreational facilities have been
entered into by the City of Corona and the Corona Norco Unified School District to more
efficiently use facilities; the Corona Police Department has contracted with the Riverside
Police Department to provide helicopter patrols to the City of Corona.
City of Hemet: The City has an agreement with Eastern Municipal Water District for
treatment of all wastewater generated within the City of Hemet; the City’s animal control
services are provided through a contract with the Ramona Humane Society.
City of Norco: The City of Norco police service is provided through contract with the
Riverside County Sheriff’s Department; the City uses contract services for its City
Engineer and Water/Sewer Manager. The City is also a member of two JPAs: the Chino
Basin Desalter Authority (water treatment) and the Western Riverside County Regional
Wastewater Authority (sewer treatment). In both cases, multiple regional partners work
together to fund regional services and solutions to meet local area needs.
City of Perris: Eastern Municipal Water District provides water and sewer service to the
majority of City of Perris residents; the City contracts with Riverside County for police and
fire services and all animal control services.
City of Riverside: The City’s RPU collaborates with other local water retailers through the
Santa Ana Watershed Planning Authority (SAWPA), and the Basin Technical Advisory
Committee (BTAC); RPU participates in the Emergency Response Network of the Inland
Empire (ERNIE), a water/wastewater mutual aid network within San Bernardino and
Riverside counties; the City also provides wastewater treatment services for the
Community Services Districts of Edgemont, Jurupa, and Rubidoux.
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City of San Jacinto: All sewage generated within the City wastewater system is provided
to the Hemet/San Jacinto Regional Water Reclamation Facility; the City has three
emergency water interconnections with Eastern Municipal Water District; police and fire
services are provided through contract with the Riverside County Sheriff’s Department
and the Riverside County Fire Department, respectively.
Eastern Municipal Water District: EMWD cooperates with the primary water provider,
MET as well as Western MWD, Elsinore Valley WD, and Rancho California WD with
supply and intertie connections to share water in emergency situations; EMWD
participates in a Joint Powers Authority (JPA) with four other agencies as the Santa Ana
Watershed Project Authority (SAWPA); EMWD is a member of the Lake Elsinore San
Jacinto Water Authority (LESJWA) that manages water flows and use in the Lake
Elsinore watershed.
Edgemont Community Services District: All legal needs of the District, except litigation
services, and all engineering and construction management services, are contracted on
an hourly basis; the District utilizes a contract plumber; the District owns capacity rights in
the Riverside Water Quality Control Plant.
Elsinore Valley Municipal Water District: EVMWD cooperates with the primary water
provider, Western MWD as well as Eastern MWD, Temescal Valley WD, Rancho
California WD and the City of Corona with supply and intertie connections; EVMWD
participates in a Joint Powers Authority (JPA) with RCWD and Western MWD for sewer
treatment services at the SRWRF; the District participates in a Joint Powers Authority
with Temescal Valley WD and the City of Corona for management of two water basins in
the Temescal Valley area; EVMWD is a member of the Lake Elsinore San Jacinto Water
Authority that manages water flows and use in the Lake Elsinore watershed; the District
owns Canyon Lake and contracts with the Canyon Lake Association to provide
recreational opportunities in the reservoir.
Home Gardens County Water District: HGCWD cooperates with the primary water
provider, City of Corona and Western MWD with a supply and intertie connection; the
District has an agreement with the City of Corona for emergency operations support if
needed.
Home Gardens Sanitary District: HGSD cooperates with the regional Authority for
sewage treatment services and is a member of the Authority.
Jurupa Community Services District: JCSD cooperates with the primary area water
provider, WMWD, with planning for emergency supply and intertie connection to share
water in emergency situations; JCSD contracts with WRCRWA and other agencies for
sewer treatment services; JCSD operates the Chino Basin Desalter facility which serves
potable water to six different agencies through a JPA.
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Lake Hemet Municipal Water District: LHMWD cooperates with Eastern MWD as a
supplier of supplemental water if needed. Eastern MWD and LHMWD have an intertie
connection to share water in emergency situations. LHMWD contracts with Eastern MWD
for sewer treatment services in the cities of Hemet and San Jacinto. LHMWD is a
member of the Hemet San Jacinto Water Master Agreement that provides for
management and recharge of the groundwater basin.
Rancho California Water District: RCWD cooperates with the primary water provider,
WMWD, as well as EMWD, with supply and intertie connections to share water in
emergency situations; RCWD provides maintenance and meter reading services to
WMWD in the Rainbow and Rock Mountain areas under a cooperative agreement since
2005; RCWD participates in a Joint Powers Authority (JPA), SRRRA, with EVMWD and
WMWD, for sewer treatment services at the SRWRF.
Rubidoux Community Services District: RCSD cooperates with the primary area water
provider, Western MWD, with supply and intertie connections to share water in
emergency situations; RCSD contracts with the City of Riverside for sewer treatment
services.
San Bernardino Valley Municipal Water District: SBVMWD is active in the following JPAs:
Santa Ana Watershed Project Authority, State Water Project Contractors Authority,
Institutional Controls Groundwater Management Program and Operation and
Maintenance of East Branch Extension; in November 2015, SBVMWD, along with many
agencies and cities, approved a Memorandum of Understanding agreeing to develop a
San Bernardino Basin Sustainability Council (GC).
Temescal Valley Water District: TVWD cooperates with the primary water provider,
Western MWD, with supply and intertie connection to share water in emergency
situations and need for equipment; TVWD has coordinated service in the northern area
by previously selling City of Corona excess water. This service is no longer in effect but
an emergency connection and pump station remain in case of need.
West Valley Water District: WVWD cooperates with several area water providers with
intertie connections to share water in emergency situations; WVWD, through and
agreement with the City of Rialto, received grant funding to jointly construct the
Groundwater Wellhead Treatment System Project to protect local groundwater supplies;
WVWD, in cooperation with 19 other water agencies, developed the website
iEfficient.com to promote water conservation and other education programs; in
partnership with five cities, three special districts and one private water agency, WVWD
participated in the joint development of a 2015 regional Urban Water Management Plan
2015 Update. This approach provides for regional and coordinated planning and
information sharing.
Western Municipal Water District: Western cooperates with the primary water provider,
MET, with supply and intertie connections to share water in groundwater recharge and in
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emergency situations; the District contracts with Eastern MWD for sewer treatment
services in the East Temecula area; Western is a member/administrator of four
groundwater agreements that provide for management oversight and recharge of the
groundwater basins; the District is a member of the SRRRA wastewater facility that
serves a portion of the sewer area in Murrieta and west Temecula; Western contracts
with RCWD which provides retail maintenance and meter reading services in the
Rainbow Area (545 acres) and Rock Mountain Area (1,355 acres) south of Temecula
totaling 48 connections and averaging 34 acre-feet per year.
6. Accountability for community service needs, including governmental structure and
operational efficiencies
The governing bodies of the agencies are locally accountable through adherence to
applicable government code sections, open and accessible meetings, and dissemination
of information. With the exception of Home Gardens County Water District and Home
Gardens Sanitary District, all agencies have websites which help to promote
transparency and accountability as well as allowing public oversight of agency activities.
These two agencies are aware of a new law requiring districts to have a website in 2019
unless specific conditions are met. As noted in agency narratives (Section 4), there may
be opportunities for further consideration of reorganization of service areas and
governance in several areas including, but not limited to:
• The Murrieta retail area including Eastern Municipal Water District, Rancho
California Water District, Western Municipal Water District and the City of
Murrieta;
• The region of Home Gardens including the Home Gardens County Water District
and the Home Gardens Sanitary District and the Cities of Corona and Riverside
that provide some services to each other;
• Potential future revisions of service areas and SOIs of Jurupa Community
Services District and Rubidoux Community Services District should development
occur; and
• The Temescal Valley area within the Temescal Valley Water District, Elsinore
Valley Municipal Water District, and City of Corona.
Some agencies lack mapping capabilities. All agencies are encouraged to develop
standardized mapping systems and submit updated maps to LAFCO on a regular basis.
7. Any other matter related to effective or efficient service delivery, as required by
commission policy
No other matters related to effective or efficient service delivery were identified by
Commission policy.
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2. Introduction
In 1997, the State Legislature convened a special commission to study and make
recommendations to address California’s rapidly accelerating growth. The Commission on
Local Governance for the 21st Century focused their energies on ways to empower the already
existing Local Agency Formation Commissions (LAFCOs), originally established in 1963. The
Commission’s final report, Growth Within Bounds, recommended various changes to local land
use laws and LAFCO statutes. Assembly Speaker Bob Hertzberg incorporated many of the
recommendations of the Commission into the Cortese-Knox-Herzberg Local Government
Reorganization Act of 2000 (AB 2838). The law provided LAFCOs with additional
responsibilities and powers.
Municipal Service Reviews
Beginning in 2001, LAFCOs in each county in California were required to review and, as
necessary, update the sphere of influence (SOI) of each city and special district. SOIs are
boundaries, determined by LAFCO, which define the logical, ultimate service area for cities
and special districts. No SOI can be updated, however, unless the LAFCO first conducts a
Municipal Service Review (MSR). MSRs evaluate how agencies currently provide municipal
services within their agency service area and evaluate the impacts on those services from
future growth and other changes that may occur over the next 10 to 20 years. The MSR report
is also required to identify potential opportunities to address any shortfalls, gaps, and/or
impacts on services and governmental structure that may currently exist or are anticipated in
the future.
The MSR process does not require LAFCO to initiate changes of organization based on
service review determinations. California Government Code §56430 do require, however, that
LAFCOs, upon receipt and consideration of an MSR, adopt written findings addressing each of
the following areas:
1. Growth and population projections for t/he affected area.
2. The location and characteristics of any disadvantaged unincorporated communities
within or contiguous to the sphere of influence.
3. Present and planned capacity of public facilities, adequacy of public services, and
infrastructure needs or deficiencies, including needs or deficiencies related to sewers,
municipal and industrial water, and structural fire protection in any disadvantaged,
unincorporated communities within or contiguous to the sphere of influence.
4. Financial ability of agencies to provide services.
5. Status of, and opportunities, for shared facilities.
6. Accountability for community service needs, including governmental structure and
operational efficiencies.
7. Any other matter related to effective or efficient service delivery, as required by
commission policy.
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Riverside Local Agency Formation Commission Western County Region Water and Wastewater Agencies
Spheres of Influence
In 1972, LAFCOs were given the power to establish spheres of influence (SOIs) for all local
agencies under their jurisdiction. As defined by the Cortese-Knox-Hertzberg Reorganization
Act of 2000 (CKH Act), LAFCO’s governing law, “sphere of influence” means a plan for the
probable physical boundaries and service area of a local agency, as determined by the
commission (Government Code §56076). SOIs are designed to both proactively guide and
respond to the need for the extension of infrastructure and delivery of municipal services to
areas of emerging growth and development. The requirement for LAFCOs to conduct MSRs
was established by AB 2838 as an acknowledgment of the importance of SOIs and recognition
that periodic reviews and potential updates of SOIs should be conducted. (Government Code
§56425(g)) with the benefit of better information and data through MSRs (Government Code
§56430(a)).
LAFCO is required to make five written determinations when establishing, amending, or
updating an SOI for any local agency that address the following:
1. The present and planned land uses in the area, including agricultural and open-space
lands.
2. The present and probable need for public facilities and services in the area.
3. The present capacity of public facilities and adequacy of public services that the agency
provides or is authorized to provide.
4. The existence of any social or economic communities of interest in the area if the
commission determines that they are relevant to the agency.
5. For an update of an SOI of a city or special district that provides public facilities or
services related to sewers, municipal and industrial water, or structural fire protection,
the present and probable need for those public facilities and services of any
disadvantaged unincorporated communities with the existing sphere of influence.
This report does not include analyses of agency spheres of influence or make
recommendations regarding potential sphere amendments. This report could, however, be
used as background and support information should Riverside LAFCO decide to pursue
specific agency sphere changes in the future.
Disadvantaged Unincorporated Communities (DUCs)
Senate Bill 244 was a significant piece of LAFCO-related legislation passed in 2011. This bill
required LAFCO to make determinations regarding disadvantaged unincorporated
communities or (DUCs). DUCs are defined as inhabited, unincorporated territory that
constitutes all or a portion of a community with an annual median household income that is
less than 80 percent of the statewide annual household income (MHI). According to the 2012 -
2016 five-year American Community Survey data, 80 percent of the statewide median
household income is $51,026.
Government Code §56375 specifically prohibits LAFCOs from approving an annexation to a
city of any territory greater than 10 acres where there exists a disadvantaged unincorporated
community that is contiguous to the area of proposed annexation unless an application to
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annex the disadvantaged unincorporated community has also been filed. Within this MSR,
each agency description includes a review of applicable DUCs (if any) for that agency and how
water and wastewater services are currently provided to that area.
Countywide Water and Wastewater MSR Study
The Countywide Water and Wastewater MSR Study focuses on 12 cities and 32 special
districts (29 independent districts and 3 County Service Areas) for a total of 44 public agencies
which currently provide water and/or sewer services to residents within Riverside County. For
ease of presentation, the agencies are divided into three separate reports by sub-region:
1) Western County (Volume 1), 2) Pass/Mountain Area (Volume 2), and 3) Coachella/Eastern
County (Volume 3).
This report (Volume 1) is focused on the Western County sub region only. Table 1 below,
identifies the agencies studied by subregion and the service(s) provided.
Table 1 – Riverside County Agencies and Services Reviewed
Services Provided
Water Wastewater
Western Agencies
1. City of Corona
2. City of Hemet
3. City of Norco
4. City of Perris
5. City of Riverside
6. City of San Jacinto
7. Eastern Municipal Water District
8. Edgemont Community Services District
9. Elsinore Valley Municipal Water District
10. Home Gardens County Water District
11. Home Gardens Sanitary District
12. Jurupa Community Services District
13. Lake Hemet Municipal Water District
14. Rancho California Water District
15. Rubidoux Community Services District
16. San Bernardino Valley Municipal Water District
17. Temescal Valley Water District
18. West Valley Water District
19. Western Municipal Water District
Pass/Mountain Area Agencies
20. City of Banning
21. City of Beaumont
22. Beaumont-Cherry Valley Water District
23. Cabazon County Water District
24. Fern Valley Water District
25. High Valley Water District
26. Idyllwild County Water District
27. Pine Cove County Water District
28. Pinyon Pines County Water District
29. San Gorgonio Pass Water Agency
30. Yucaipa Valley Water District
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Services Provided
Water Wastewater
Coachella/Eastern County Agencies
31. City of Blythe
32. City of Coachella
33. City of Indio
34. City of Palm Springs
35. Chiriaco Summit County Water District
36. Coachella Valley Water District
37. Desert Water Agency
38. Imperial Irrigation District*
39. Mission Springs Water District
40. Palo Verde Irrigation District
41. Valley Sanitary District
42. County Service Area 51 (Desert Center/Lake Tamarisk)
43. County Service Area 62 (Ripley)
44. County Service Area 122 (Mesa Verde)
* provides only electricity in Riverside County
Metropolitan Water District of Southern California
The Metropolitan Water District of Southern California’s (MET) mission is to provide its service
area with adequate and reliable supplies of high quality water to meet present and future
needs in an environmentally and economically responsible way. Today, MET serves Riverside
‑
County as part of a 5,200-square-mile service area that also includes Los Angeles, Orange,
San Bernardino, San Diego and Ventura counties.
Exhibit 1 – MET Service Area Map
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MET was established in 1928 under a special act of the California Legislature to build and
operate the 242-mile Colorado River Aqueduct that would bring water to southern coastal
areas. Southland residents voted for a major bond in the depths of the Great Depression to
fund the herculean construction effort through the desert to deliver essential water supplies
and generate badly needed jobs.
In 1960, MET, along with 30 other public agencies, signed a long-term contract that made
possible the construction of the State Water Project, including reservoirs, pumping plants and
the 444-mile California Aqueduct, which currently serves urban and agricultural agencies from
the San Francisco Bay to Southern California, including Riverside County. As the largest of the
now 29 agencies, MET contracts with the State Department of Water Resources, which owns
and operates the State Water Project, for slightly less than half of all supplies delivered to
Metropolitan.
More than 1,800 employees and many contractors perform a wide range of water
management, planning, conservation and other activities to serve Metropolitan’s 26 public
member agencies, including both cities and special districts. Eastern Municipal Water District
(EMWD) and Western Municipal Water District (WMWD) are Met’s only two member agencies
within Riverside County. MET provides more than 50 percent of the region’s water through
imported supplies and investments in new local projects including recycled water and
conservation. Each member agency is entitled to at least one director; additional directors are
based on each member agency’s assessed valuation.
MET ratepayers have also invested over two billion dollars to build the Diamond Valley Lake
and reserve, the largest local reservoir in California, located within Riverside County, which
stores water that can be used to supply the region in dry years or during emergencies.
Diamond Valley Lake has a surface area of 4,500 acres and capacity of 810,000 acre-feet of
water. Adjacent to Diamond Valley is Lake Skinner and the Robert A. Skinner Water
Treatment Plant that has capacity to treat up to 630 million gallons per day for the Eastern and
Western MWD’s and for the San Diego Water Authority service areas. Without this essential
water source, Southern California would have faced water rationing three years ago during the
recent drought cycle.
The two MET member agencies in Riverside County, EMWD and WMWD, are wholesale
water suppliers to many of the other water purveyors within Riverside County. Each of these
agencies are described in more detail as to their service areas and supply capabilities under
their sections of the report.
Mutual Water Companies
Assembly Bill 54 (Solorio) was enacted in 2011 and added several requirements and
responsibilities to managers of Mutual Water Companies (MWCs) effective January 1, 2012.
Corporations Code §14301.1 requires that each mutual water company submit to the LAFCO
for its county a map showing its service area by December 31, 2012. In addition, a MWC must
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respond to a request for non-confidential information from a LAFCO in conjunction with that
agency’s preparation of a municipal service review or sphere of influence. Government Code §
56430(c) and (d) also allow a LAFCO conducting a municipal service review to investigate
whether a MWC that operates a public water system is in compliance with the federal and
state Safe Drinking Water Acts.
The following MWCs responded to Riverside LAFCO request for information or have been
identified as providing service within cities or water agencies in Riverside County. Several
MWCs in the County have not responded to LAFCO’s 2013 request for a map of their service
area.
Table 2 – Mutual Water Companies - Western County Subregion
Company Name Address # of Connections Contact
Block 77 Cooperative Water 5010 Bluff Street, Norco 18 connections George Phillips
Company 80 customers (951) 734-8647
Box Springs Mutual Water 21740 Dracaea Avenue 600 connections Joe Mendoza
Company Moreno Valley 3,300 customers (951) 653-6419
Eagle Valley Mutual Water East of Temescal Creek 3,070 agriculture connections N/A
Company No address available (water supplied by Western MWD) Corporation file inactive
Farm Mutual Water Company 33383 Millpond Drive Unknown Donna Schardein
Wildomar (water supplied by Elsinore Valley WD) (951) 928-1922
Nuevo Water Company 30427 11th Street 1,788 connections Edward Peister
Nuevo 8,000 residents (951) 928-1922
Riverside Highland Water 12374 Michigan Street 3,900 connections Don Hough
Company Grand Terrace (Riverside and San Bernardino Counties) (909) 825-4128
Santa Ana River Company 10530 54th Street 2,042 connections J. Arnold Rodriguez
Mira Loma 8,080 residents (951) 685-6503
(water supplied by Western MWD)
South Mesa Water Company 391 W. Avenue L 2,996 connections David A. Armstrong
Calimesa 13,000 residents (909) 795-2401
(40 percent in Riverside Co.)
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3. Riverside County Overview
Riverside County is the fourth largest county in California by population, stretching nearly 200
miles across and comprising over 7,200 square miles of fertile river valleys, low deserts,
mountains, foothills and rolling plains. Riverside County shares borders with Imperial, Orange,
San Diego, and San Bernardino Counties, extending from within 14 miles of the Pacific Ocean
to the Colorado River. Geographically, the County is mostly desert in the central and eastern
portions but has a Mediterranean climate in the western portion. Most of Joshua Tree National
Park is located in the County.
Taking its name from the City of Riverside, the County was formed in 1893 from a small
portion of San Bernardino County and a larger part of San Diego County. In May 1893, voters
living within an area carved from San Bernardino County and San Diego County approved
formation of Riverside County. On May 9, 1893, the County officially formed and began
charting a course under its newly elected Board of Supervisors. The County's early years were
linked to agriculture, most significantly as the birthplace of the citrus industry in California, but
commerce, construction, manufacturing, transportation and tourism soon took hold,
contributing substantially to the region's rapid growth.
Recent years have brought dramatic population growth. Between 1980 and 1990, the number
of residents grew by over 76 percent, making Riverside the fastest-growing county in
California. By 1992, the County was "home" to over 1.3 million residents, more than the entire
population of 13 states, among them Maine, Nevada, Hawaii and New Hampshire. Since 1992,
the population has nearly doubled. As depicted in Tables 3 and 4, below, population and
employment growth within Riverside County between 2015 and 2040 is projected to outpace
every other county within the Southern California Association of Governments (SCAG) region
with exception of Los Angeles.
Table 3 – Population by County
Difference
County 2000 2010 2015 2040 2015-2040
Imperial 143,151 175,594 182,390 282,024 99,634
Los Angeles 9,543,983 9,827,070 10,158,776 11,513,435 1,354,659
Orange 2,853,893 3,017,089 3,157,074 3,464,487 307,413
Riverside 1,557,271 2,191,800 2,316,438 3,167,584 851,146
San Bernardino 1,719,190 2,038,771 2,111,256 2,731,321 620,065
Ventura 756,902 853,188 853,188 965,210 112,022
Source: 2015-2040 SCAG RTP/SCS
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Table 4 – Employment by County
Difference
County 2000 2010 2015 2040 2015-2040
Imperial 54,080 56,480 76,000 124,609 48,609
Los Angeles 4,444,600 4,140,040 4,463,010 5,225,707 762,697
Orange 1,516,770 1,492,940 1,633,000 1,898,685 265,685
Riverside 513,740 591,850 742,000 1,174,500 432,500
San Bernardino 587,340 652,830 729,000 1,028,132 299,132
Ventura 323,200 322,560 363,000 419,808 56,808
Source: 2015-2040 SCAG RTP/SCS
Water Supply Reliability and Policy Issues - Riverside County and California
The State of California and the region of Riverside County have been substantially impacted
over the past five years of drought now being recognized as the one of the worst droughts in
the State history. Since a majority of the water supply is imported, the continuing drought has
an impact upon the current and future livelihood and economic viability of the region. Governor
Brown and the State Water Resources Control Board (SWRCB), as the overseer of policy
issues of water in the State of California, have taken actions to respond to the ongoing drought
conditions in the state.
A summary of the actions taken to date include:
• On January 17, 2014, the Governor issued a proclamation of a State of Emergency
under the California Emergency Services Act based on drought conditions;
• On April 25, 2014, the Governor issued a proclamation of a continued State of
Emergency under the California Emergency Services Act based on continued drought
conditions; and
• On April 1, 2015, the Governor issued an Executive Order that, in part, (1) directs the
State Water Resources Control Board (SWRCB) to impose restrictions on water
suppliers to achieve a statewide 25 percent reduction in potable urban usage through
February 28, 2016; and, (2) requires commercial, industrial, and institutional users to
implement water efficiency measures.
• On April 17, 2015, the SWRCB issued conservation standards (targets) for each of the
hundreds of water agencies in the state. Implementation began June 1, 2015. Each
agency was designated a target reduction of eight percent, an amount in the lower
range of the tiers of between six to 36 percent. Under the approved regulations, each
agency is required to report water usage each month and will face the potential of
penalties or fines for not achieving the established targets
Although the Governor declared an end to California’s historic five-year drought last year in
June 2018, he signed two new laws that will require cities and water districts across the state
to set permanent water conservation rules, even in non-drought years. The two bills, SB
606 by Sen. Robert Hertzberg (D-Van Nuys) and AB 1668 by Assemblywoman Laura
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Friedman (D-Glendale), require cities, water districts and large agricultural water districts to set
strict annual water budgets, potentially facing fines of $1,000 per day if they are not met, and
$10,000 per day during drought emergencies. Under the bills, each urban water provider will
be required to come up with a target for water use by 2022. Fines for agencies failing to meet
their goals can begin in 2027. The targets must be approved by the State Water Resources
Control Board between now and then and will vary by city and county.
Standards will be based on a formula that is made up of three main factors: an allowance of 55
gallons per person per day for indoor water use, dropping to 50 gallons by 2030; a yet-to-be
determined amount for residential outdoor use that will vary depending on regional climates;
and a standard for water loss due to leak rates in water system pipes. The new laws make it
likely that water agencies will need to offer more rebates for home owners and business
owners who replace lawns with drought-tolerant plants and who purchase water efficient
appliances. The agencies could also limit the hours and days of landscape watering, even
when droughts are not occurring.
Governor Brown and the Legislature are discussing further actions proposed to deal with the
drought and to provide incentives for developing new or alternative water supplies. Funding
from prior voter approved water bonds have been appropriated and additional assistance in
coordinating efforts with Federal agencies is being considered. At this point, it is expected that
water supply and demand management will continue to be very high priority topics within the
State and among local government agencies, including LAFCOs.
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4. Western County – Water and Wastewater Agencies
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City of Corona
Overview/History
The City of Corona was founded at the height of the Southern California citrus boom in 1886.
Once known as the “Lemon Capital of the World,” Corona was established as a town by the
South Riverside Land and Water Company. Originally located in San Bernardino County, the
town was named “South Riverside.” In 1893, South Riverside became part of the new
Riverside County. On July 13, 1896, the City incorporated and was renamed “Corona” for its
circular Grand Boulevard.
Located at the junction of two major freeways, the east/west Riverside Freeway (SR-91) and
the north/south Interstate 15 (I-15) Freeway, the City is situated at the upper end of the Santa
Ana River Canyon. Neighboring cities include Riverside to the northeast and Norco to the
north. The southern and western portions of the City are bordered by the Cleveland National
Forest and other County lands. Currently, the City encompasses 24,667 acres. The City
provides a full array of municipal services to its residents including, but not limited to, police,
fire, planning, library, parks and recreation, animal care, water and sewer.
The City provides both water and sewer services outside its corporate boundaries. Wastewater
service is provided by the City to Corona residents as well as a small portion within the City of
Norco. The City’s water service area includes the City’s boundaries and extends approximately
six square miles into the adjacent unincorporated communities of El Cerrito and Coronita and
parts of Temescal Canyon. Home Gardens County Water District and Home Gardens Sanitary
District are located with the City’s sphere of influence, and portions of both districts are within
the City limits.
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City of Corona
Exhibit 2 – City of Corona
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City of Corona
City of Corona – Agency Profile
General Information
Agency Type General Law City
Date Formed Incorporated July 13, 1896
Services Full service - administration, police, fire, streets, flood control, municipal airport, library,
water, sewer, parks and recreation
Service Area
Location The City of Corona is located in northwest Riverside County, northeast of the Cities of
Norco and Riverside, northwest of the Cities of Chino Hills and Yorba Linda, and southwest
of Cleveland National Forest and the Santa Ana Mountains
Square Miles/Acres Water: 45 square miles Sewer: 38.9 square miles
Total Water/Sewer Connections Water Connections: 42,989 Sewer Connections: 39,279
Population Served Water Service Area: 167,764 (2015) Sewer Service Area: 166,785 (2018)
Water Infrastructure
Facilities 2 water treatment plants, 1 desalter, 1 ion-exchange, 22 wells, 18 pump stations and 17
storage reservoirs
Storage Capacity 26.5 million gallons
Primary Source of Supply 50% local groundwater; 50% imported water
Water Rates (single-family home) Fixed rate for ⅝” connection: $19.23/month; ¾”: $25.25/month plus residential usage fees
based on tiered rate structure
Sewer Infrastructure
Facilities 14 sewer lift stations, 3 wastewater treatment plants, 1 JPA Treatment Plant, 13 miles of
force main, 423 miles of gravity sewer, 115 miles of laterals
Current and Projected Treatment 16.87 MGD
Capacity
Primary Disposal Method Tertiary treatment at three wastewater treatment plants
Sewer Rates (single-family home) $45.60/month (flat rate per single-family home)
Budget Information - FY 2017-2018 (Water & Sewer Funds)
Revenues Expenditures Net Surplus/(Deficit)
Water/Recycled Fund * $73,056,924 $68,197,306 $4,859,618
Sewer Fund * $68,377,427 $29,940,840 $38,436,587
Combined General Funds $141,602,007 $144,920,139 ($3,318,132)
Capital Expenditures (W&S only) $25,865,259 Long Term Planned Expenditures (2018-22)
Water - $81,189,252
Sewer - $21,835,700
Water Fund Balance/Reserves $1,740,021 Projected year end 2017-18
Sewer Fund Balance/Reserves $30,558,859 Projected year end 2017-18
Agency Net Position $94.8 million Restricted and unrestricted
Governance
Governing Body 5-member City Council, elected by district; City Council meets 1st and 3rd Wednesdays,
6:30 p.m., at City Hall located at 400 S. Vicentia Avenue, Corona 92882
Agency Contact Tom Moody, 951-736-2477, tom.moody@CoronaCA.gov
(General Manager)
*Includes carry forward funds as revenues for working capital
Sources: City of Corona Sewer System Management Plan (2015); City of Corona Urban Water Management Plan (2015); City’s General Plan;
City’s website; CA Integrated Water Quality System (CIWQS); City of Corona staff
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Growth and Population Projections
The California State Department of Finance estimates the City’s 2018 population to be
168,574. As expected in an area reaching build out conditions, the City’s projected population
over the next 25 years is expected to slow significantly when compared to growth experienced
in previous decades. Between 2015 and 2040, growth is expected to increase by
approximately by 8.2 percent, or 15,036 residents.
Table 5 – City of Corona Population Projections, 2015-2040
2015 2020 2025 2030 2035 2040
167,764 170,100 172,900 176,100 179,600 182,800
Source: City of Corona Urban Water Management Plan (2015)
According to the City’s General Plan, 30 percent of the City is developed with housing, four
percent with commercial and office uses, 12 percent with industrial uses, 37 percent for public,
parks and open spaces, and 17 percent remains undeveloped. Less than one percent of the
lands continue to be used for agricultural purposes.
Disadvantaged Unincorporated Communities (DUCs)
Riverside LAFCO has determined that there are two DUCs within the sphere of influence of
the City of Corona. The first DUC is located in the unincorporated Home Gardens area,
generally located south of Sampson Avenue, west of McKinley Street, east of Temescal
Street, and north of the City’s boundary. This area is currently provided water and sewer
services by the Home Gardens County Water District and the Home Gardens Sanitary District,
respectively. No capacity issues for water or sewer are anticipated in the foreseeable future.
A second DUC has been identified by Riverside LAFCO in the unincorporated El Cerrito East
area, generally located east of Rising Sun Road, north of E. Ontario Avenue, west of Santa
Anita Street, and south of the City of Corona boundary. El Cerrito East residents are currently
served water by the City of Corona through an out of agency service agreement. Sewer
service is largely by septic tank, although the City adopted a specific plan for the area (in
anticipation of future annexation), last amended in 2011, that provides guidelines for future
conversion of commercial, industrial and residential uses to a conventional sewer system.
Present and Planned Capacity of Public Facilities
Water
The City’s water service area encompasses approximately 39 square miles within the
incorporated boundary of the City of Corona and extends into several adjacent areas, including
the unincorporated communities of El Cerrito, Coronita, and parts of Temescal Canyon. In
total, the City serves an area of approximately 45 square miles and a population of
approximately 150,000 customers. Corona’s water supply comes from three main sources:
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local groundwater, the Colorado River and the State Water Project in Northern California. In
2016, groundwater wells owned and operated by the City of Corona provided 47.5 percent of
the City’s water supply, 44.8 percent came through Lake Mathews from the Colorado River,
6.7 percent from the State Water Project’s California Aqueduct and the final one percent was
purchased from Western Municipal Water District’s Arlington Desalter treatment facility.
Corona residents and businesses used approximately 9.7 billion gallons of drinking water in
2016.
The surface water from the Colorado River requires treatment to become drinking water. The
treatment process is accomplished in the City of Corona’s two surface water treatment
facilities: Sierra Del Oro and Lester. These facilities incorporate the use of coagulants, which
bind small particles together to form larger particles that can be easily removed through
multimedia filtration. After filtration, the water is disinfected through treatment with sodium
hypochlorite (NaOCl) to kill or inactivate harmful organisms. About half of the groundwater
pumped in Corona is sent through a state-of-the-art reverse osmosis membrane treatment
facility, the Temescal Desalter. This facility provides removal of nitrates, per-fluorinated
compounds, 1,2,3-Trichloropropane (123-TCP), perchlorates, and suspended and dissolved
solids. Addition of NaOCl is also performed at this facility to maintain chlorine residual in the
water distribution system and act as a disinfectant.
In April 2010, the City’s Department of Water and Power implemented a tiered rate and water
budget system. Tiered rates and water budgets are designed to promote efficient water use
and resource conservation by providing enough water for typical but efficient water use indoors
and outdoors. Tiered rates also provide a means to charge rates based on water is being used
- inefficient water users will pay a higher cost for water than efficient water users.
Table 6, below, summarizes the normal year water supply and demand comparison. As shown
below and stated in the City’s Urban Water Management Plan (2015), there is adequate
supply under normal years to meet water demands through 2040.
Table 6 – City of Corona Normal Year Water Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
Supply Totals 56,396 56,396 56,396 56,396 56,396
Demand Totals 39,533 39,514 39,555 39,636 39,636
Difference 16,863 16,882 16,841 16,760 16,760
Source: Corona UWMP (2015)
Table 7 below summarizes the single dry year demand comparison. To project the single dry
year demand, a calibrated model was used using population projections, historical temperature
and precipitation data from 2007 and economic growth forecasts. As shown below, and stated
in the City’s Urban Water Management Plan (2015), there is adequate supply under normal
years to meet water demands through 2040.
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Table 7 – City of Corona Single Dry Year Water Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
Supply Totals 56,396 56,396 56,396 56,396 56,396
Demand Totals 47,616 47,486 47,523 47,609 47,699
Difference 8,780 8,910 8,873 8,787 8,697
Source: Corona UWMP (2015)
Wastewater (Water Reclamation)
The City’s existing wastewater system currently provides for collection and treatment of
wastewater generated within its corporate boundaries, as well as a small portion of the
neighboring community of Norco. The system includes 368 miles of gravity sewer pipe, 14
sewer lift stations and three wastewater treatment plants. The gravity system consists of
approximately 368 miles of pipe ranging in size from 6 inches to 42 inches in diameter.
Approximately 83 percent of the pipes are 8-inch in diameter. The majority of the system was
built in the 1980s, and 1990s. The 14 sewer lift stations located throughout the service area
serve low lying or fringe areas of the City that cannot be served by the gravity system.
The City owns and operates three wastewater treatment plants, described below. The effluent
produced meets criteria for discharge to percolation ponds, Temescal Creek and California
Title 22 reuse.
Wastewater Treatment Plant 1 (WWTP 1) was constructed in 1967-1968 and expanded in
1998. The expansion included a new headworks, grit removal, expanded tertiary filters, and
UV disinfection. The latter allowed the City to terminate use of its percolation ponds in the
Prado Basin. It serves the western portion of the City as well as a small portion of the City of
Norco. WWTP 1 consists of preliminary treatment, two secondary treatment facilities (Plant 1A
and 1B), and a tertiary treatment facility. Up to 5.5 MGD of the flow from the headworks is
directed to Plant 1A, and up to 6.0 MGD is conveyed through Plant 1B. The secondary effluent
is either sent to the tertiary treatment facility or to the Lincoln Avenue and Cota Street
percolation ponds. The tertiary process produces Title 22 recycled water that can be used for
irrigation and/or is discharged to Butterfield Drain, a tributary of Temescal Creek. The
maximum flow to the tertiary facility is 9.0 MGD. The current firm treatment capacity is 11.5
MGD. With improvements, the future reliable treatment capacity is expected to be 14.5 MGD.
Combined, both plants are operated to accommodate a total instantaneous design peak flow
of 37.7 MGD.
Wastewater Treatment Plant 2 (WWTP 2), formerly called the Sunkist Treatment Plant, was
used to treat industrial process wastewater. In 1986, the City purchased the plant and had it
renovated to provide primary and secondary treatment. WWTP 2 became operational in 1988
and now serves the eastern and northeastern portions of the City. WWTP 2 is a conventional
activated sludge facility with the ability to bypass flows to WWTP1. It discharges secondary
effluent to the Lincoln and Cota Street percolation ponds. The current firm treatment capacity
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is 3.0 MGD. With improvements, the future reliable treatment capacity is expected to be 3.5
MGD.
Wastewater Treatment Plant 3 (WWTP 3) was constructed in 2001 and serves the
southeastern portion of the City. WWTP 3 is a water reclamation plant that provides Title 22
reclaimed water for reuse. Its current reliable treatment capacity is 1.0 MGD. Future planned
plant expansion will increase its firm capacity to 3.0 MGD. Currently, the plant treats
approximately 0.3 MGD. Sludge effluent is pumped via a six-inch force main northwest to an
existing manhole in Chase Drive just south of Teddy Bear Lane. The sludge then re-enters the
gravity system and flows to WWTP 2 for processing.
The City has developed a rehabilitation and replacement plan via the City of Corona Sewer
Master Plan (2005). The Master Plan identifies several considerations used in determining the
useful life of the City’s gravity sewers, force mains, and sewage pump stations. These
considerations include: type of materials used and recorded performance of similar
installations; velocities and flow rates expected in the system; chemical and biological
conditions of the wastewater; construction methods and installation quality; and frequency,
thoroughness, and types of maintenance. Based upon the assessments in the Master Plan, a
list of Capital Improvement Projects (CIP) was identified. Every year the CIP is reviewed and
revised based on the changing needs of the City and current regulations.
According to the City Sanitary System Management Plan (2015), “…the City’s sewer system
has sufficient capacity to handle peak dry weather flows and has not experienced any wet
weather overflows. In addition, through proactive efforts, dry weather overflows have
decreased. However, some dry weather overflows continue to occur due to tree roots, grease
blockages, and vandalism. The City has eliminated dry weather overflows resulting from power
outages or equipment failures.”
Emergency Preparedness (Supply Interruption Capability)
Extended multi-week supply water shortages are unlikely due to natural disasters or accidents
which damage all water sources. As discussed previously, the City has the ability to produce
water from three individual groundwater basins creating water production flexibility. The City
also maintains a sound preventative maintenance program for its water distribution system.
According to the City, auxiliary generators are available, and improvements have been made
to water facilities to minimize loss of these facilities during an earthquake or any disaster
causing an electric power outage. The City has also entered a MOA with Western Municipal
Water District to receive their CDA water and is currently updating its Water Master Plan.
The City has developed an SSMP for sewer operations which includes appropriate personnel
listings, resource inventories, locations for emergency operations centers, response
procedures, and the steps necessary to resume normal operations.
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Financial Ability to Provide Services
As of June 30, 2017, the City was able to report a positive increase in its Net Position, the
value of assets and funds on hand for operations and capital investment, to $1,057,770,901,
an increase of $48,533,583 over the prior year and an increase in balance in its unrestricted
net position to $20,725,857. On June 30, 2017, the Water Fund Net Position balance was
$122,988,856. This is an increase of $8,208,242, during a period of drought including demand
management restrictions and slightly less sales overall. The Water Fund Unrestricted Net
Position was ($83,208,242).
On June 30, 2017, the Sewer Fund Net Position balance was $98,551,599. This is an increase
of $11,174,215 over the prior year. The Sewer Fund Unrestricted Net Position was
($9,997,025). In February 2014, the City Council adopted a water rate increase and sewer rate
increase to provide necessary funds for operations and capital replacements and a rate
stabilization emergency fund.
Table 8 – City of Corona Financial Information
FY 2014-15 FY 2015-16 FY 2016-17
Total City Revenues $ 225,682,334 $ 306,932,974 $ 284,947,054
Total City Expenditures -240,676,107 -251,867,006 -249,530,353
Revenues minus Exp enditures $ -14,993,773 $ 55,065,968 $ 35,416,701
City Net Position $ 952,448,232 $ 1,007,514,200 $ 1,057,770,901
Water Fund
Water Fund R evenues $ 61,966,255 $ 54,847,287 $ 61,130,682
Water Fund Expenditures -55,714,372 -51,177,312 -52,922,440
Revenues minus Expen ditures $ 6,251,883 $ 3,669,975 $ 8,208,242
Ending Net Position $ -74,226,236 $ -77,861,368 $ -83,143,014
Sewer Fund
Sewer Fund Revenu es $ 36,586,084 $ 32,880,807 $ 35,432,981
Sewer Fund Expenditures -26,500,708 -25,004,508 -24,258,766
Revenues minus Expen ditures $ 10,085,376 $ 7,876,299 $ 11,174,215
Ending Net Position $ -30,916,415 $ -22,479,078 $ -9,997,025
Sources: City CAFRs 2015, 2016 & 20 17
There are seven primary areas, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water and sewer service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratio of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
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1. 3 Year Revenue/Expenditure Budget Trends
The water fund overall has been experiencing a slight surplus as well as occasional deficit
spending over the last several years. However, this has been attributed primarily to planned
capital expenditures and cash flows due to fluctuating water sales. A rate increase plan was
adopted by the City Council in February 2014 and has been implemented to accommodate
these changes in water uses, planned expenditures for infrastructure, and to establish an
emergency fund for rate stabilization into the future. Sewer rates were also adjusted in
February 2014.
2. Ratios of Revenue Sources
The City receives 98 to 99 percent of its water fund and sewer fund revenues from charges
and fees for services, no revenue from property taxes, and about 1 - 2 percent from
miscellaneous other sources.
3. Ratio of Reserves or Fun d Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted cash reserve or fund balance the service fund
maintains in relation to the annual fund expenditures. The City’s Water Fund balance ratio is
approximately four percent of annual expenditures. This fund ratio represents a low ratio
position, and the reserve has been decreasing over time. The City's Sewer Fund balance ratio
is approximately 126 percent of annual expenditures, including debt service for facilities and
wastewater treatment capacity, a very positive ratio position.
The ratios of unrestricted reserves for both the water fund and sewer fund reflect a negative
balance and are not typical for enterprise fund services; it appears that the City utility has been
operating utilizing restricted funds to offset the impact that negative economic factors might
have had over the past ten years.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the City’s
ability to meet debt obligations in relation to service provision expenditures. Ideally, a ratio of
ten percent or less would reflect a very stable ratio. The City’s Water Fund has reasonable
debt, including refinancing of prior debt to reduce long-term expenses and to pay for needed
capital projects over time. The Water Fund's annual debt service ratio to total expenditures is
approximately 8 percent, a reasonable ratio. The Sewer Fund debt service ratio to total
expenditures is approximately 20 percent, somewhat high but necessary due to the Revenue
Bond funded purchase and lease of additional sewer treatment capacity for the future. The
overall City Debt Service Ratio is 2.3 percent, a low ratio that reflects stable debt service.
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5. Rate Structures
The City Council adopted a Three-year Water and Sewer Rate Study in February 2014. Fixed
monthly water charges range from 5/8-inch meter at $19.23 to a typical ¾-inch meter at $25.23
per month. The City’s current water user charge is $ 2.10 to $11.64 per 100 cubic feet of
usage within an established "water budget" for each customer. The City uses a four tier rate
system.
Table 9 – City of Corona Residential Water Rates (per HCF)
Tier Effective February 2014 Basis for Tier
Indoor Budget $2.10 Efficient Water Use
Outdoor Budget $2.33 Efficient Outdoor Water Use
Inefficient Use $3.17 1% to 20% over Water Budget
Excessive Use $6.35 21% to 40% over Water Budget
Wasteful Use $11.64 Exceeds 40% over Water Budget
Sewer rates were increased in the 2014 Fiscal Year to $45.60 per EDU (Equivalent dwelling
unit) per month fixed charge for residential users.
6. Capital Improvement Program/Plan
The City has developed and implemented an aggressive and comprehensive CIP for water
and sewer facility infrastructure improvements. The City’s current 5-Year CIP reflects
approximately $81.2 million in improvements for water infrastructure and $21.8 million for
sewer. For water, there is approximately $21.8 million programmed for FY 2017-18, and the
City's Sewer CIP for 2017-18 is projected at $4.1 million for various projects.
The City’s water and sewer funds do not receive tax revenues and must recover the cost of
providing services through user rates. With the rates revised in 2014, both the water and
sewer funds are projected to generate sufficient revenues to cover operating costs, build
working capital reserve, fund a rate stabilization reserve and provide for capital investment in
water and sewer infrastructure.
According to the City’s CIP plan, the estimated capital project expenditures listed for FY 2018-
2022 will be made over several more years. Over the next ten years, the City anticipates
spending $66.7 million on sewer system improvement projects and $167.4 million on water
system improvement projects.
7. Pension Liability and Other Post-Employment Benefits Liability
As most cities and government agencies in California, the City has a pension liability and post-
employment liability. The 2017 CAFR reports that the City has a $197.5 million unfunded
pension liability and is making the required payments to offset the liability over time. The City
has entered into a program for OPEB obligations which include life insurance and medical
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benefits for retirees and is prefunding actuarial estimated amounts of $8.9 million in 2017-18 at
an amount of $10 million in the current year.
A full explanation of pension liability and OPEB is contained in the Notes section of the 2017
CAFR.
Status and Opportunity for Shared Facilities/Services
The City participates in a number of ways to share municipal services, including:
• Corona’s Wastewater Treatment Plant 1, constructed in 1967-1968 and expanded in
1998, serves the western portion of the City as well as a small portion of the City of
Norco.
• The Corona Fire Department has formal mutual aid agreements with many fire service
agencies within the western Riverside County area.
• Formal agreements for the sharing of park and recreational facilities have been entered
into by the City of Corona and the Corona Norco Unified School District to more
efficiently use facilities.
• The City’s Police and Fire Departments have worked together to develop the Temescal
Public Safety Facility. The cooperative development of this facility has allowed both
departments and the City to combine resources to meet the public safety service needs
of the community.
• The Corona Police Department has contracted with the Riverside Police Department to
provide helicopter patrols to the City of Corona.
Government Structure and Accountability
The City of Corona is governed by a five-member City Council, elected to four-year terms of
office. As a result of the passing of Measure N on the November 2016 ballot, the City of
Corona changed its current “at-large” system for electing City Council Members to a “by-
district” system. Measure N created five council electoral districts and requires the election by
the residents of each of those districts of one Council Member who also resides in the same
district. The City Council Members currently in office will continue in office until the expiration
of their terms. Beginning with the election in November of 2018, the voters in District 1, District
4 and District 5 elected their City Council Members by district. In November of 2020, the voters
in District 2 and District 3 will elect their City Council Members by district.
Table 10 – City of Corona City Council Members
City Council Member Term Expires
Yolanda Carrillo November 2020
Jacque Casillas November 2022
Wes Speake November 2022
Jim Steiner November 2022
Jason Scott November 2020
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The regularly scheduled City Council meetings are held on the first and third Wednesdays of
each month at 6:30 p.m. in the Council Chambers in City Hall. Agendas for the meetings are
posted at City Hall and on the City’s website. City Council meetings are broadcast live on local
cable television channels and re-run throughout the week for Corona residents.
In addition to City Council meetings, the City has several methods of reaching out to the public
and providing opportunities for the residents of the City to track the implementation of local
policies. The City’s website provides access to City budgets and audits, meeting agendas, City
Council and City staff contact information, etc. Residents can also sign up for “e-notification”
through the City which allows for customized email notification on specific topics of special
interest to residents.
In March 2017, Corona was selected as one of ten new cities to participate in Bloomberg
Philanthropies’ “What Works Cities” Initiative, one of the largest philanthropic efforts to
enhance cities’ use of data. With support from a consortium of expert partners, including the
Center for Government Excellence at John Hopkins and the Government Performance Lab at
Harvard Kennedy School of Government, “What Works Cities” identify effective ways to
evaluate programs and improve performance; best use resources to serve their communities;
and become a data driven organization focused on community engagement and positive
outcomes for residents.
Based upon past and current service provision practices, it is reasonable to conclude that
appropriate levels of public services can continue to be provided by the City of Corona to
current and future populations under the existing government structure. No alternative
government structure options were identified for further consideration at this time.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
The City of Hemet was incorporated in January 1910. Served by a railroad spur
from Riverside, the City became a trading center for the San Jacinto Valley's agriculture, which
included citrus, apricots, peaches, olives and walnuts. In 1950, Hemet was home to 10,000
people and joined Corona and Riverside as the three largest cities in Riverside County.
The City of Hemet is located in western Riverside County, approximately 35 miles southeast of
Riverside. State Route 74 traverses the City in an east-west direction along Florida Avenue,
and connects with Interstate 215 to the west. SR 79 connects the City with San Jacinto to the
north, and Temecula and Interstate 15 to the south. Hemet is bordered by the City of San
Jacinto on the north but is otherwise surrounded by unincorporated areas of Riverside County.
The City is approximately 28.3 acres in size and includes an additional 34.2 square miles in its
sphere of influence. The area's affordability, its proximity to employment centers such as
Corona, Riverside and San Bernardino, and its relatively rural character made it an attractive
location for retirees and those priced out of other areas of Southern California.
The City provides a full array of municipal services to its residents, including administration,
police, fire, library service, parks and recreation, and street maintenance. Animal control
services are provided through a contract with the Ramona Humane Society. Hemet, today,
retains much of its retirement orientation. The economy is based primarily on service to the
senior community and ancillary services such as financial institutions and health care
professions.
In 1954, the City of Hemet purchased the Lake Hemet Water Company water system, which
consisted of two deep wells, one 1.5 million-gallon (MG) reservoir and miscellaneous
distribution systems in need of a maintenance and replacement program. At that time, the
boundaries of the City of Hemet and the area serviced by the City’s Water Department were
approximately the same, 3,360 acres (5.25 square miles). Since that time, the City limits have
expanded, primarily to the south and west, and now encompass 17,728 acres (27.7 square
miles), while the City’s water service area has remained approximately the same. Two other
water districts, Eastern Municipal Water District (EMWD) and Lake Hemet Municipal Water
District (LHMWD), currently serve the remaining 22.45 square miles of incorporated City area.
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Exhibit 3 – City of Hemet
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City of Hemet - Agency Profile
General Information
Agency Type General Law City
Date Formed January 20, 1910
Services Full service: fire, police, planning, parks, streets, street lighting, wastewater, water, animal
control, library
Service Area
Location Located in southwestern Riverside County, in the San Jacinto Valley; Hemet is south of the
City of San Jacinto and 80 miles southeast of downtown Los Angeles
Square Miles/Acres Water: 5.25 square miles Sewer: 17.33 square miles
Total Water/Sewer Connections Water: 8,437 connections Sewer: 12,000 connections
Population Served Water: 29,000 (est.) Sewer: 31,873
Water Infrastructure
Facilities 9 wells, 4 storage reservoirs; 120 miles of water mains (4” to 14”)
Storage Capacity 5.1 million gallons
Primary Source of Supply 100% Groundwater; City also maintains a connection with Eastern Municipal Water District
Water Rates (single-family home) ¾” meter: $30.49/month; ⅝” meter: $27.55/month; plus $4.54/HCF; City does not use a
tiered rate structure
Sewer Infrastructure
Facilities Collection system only; 140 miles of gravity sewer
Current and Projected Treatment Transmission and treatment of sewage provided by EMWD’s San Jacinto Regional Water
Capacity Reclamation Facility; 14 MGD capacity
Primary Disposal Method Wastewater treated to tertiary level and used for non-potable reuse (golf course irrigation,
parks, etc.)
Sewer Rates (single-family home) $37.83/month/fixed rate
Budget Information - FY 2017-2018 (Water & Sewer Funds)
Revenues Expenditures Net Surplus/(Deficit)
Water Fund $11,408,960 $10,085,090 $1,323,870
Sewer Fund $7,698,364 $2,904,568 $4,793,826
Combined City Funds $123,570,265 $83,613,246 $39,457,205
Capital Expenditures FY 2016-2017 Long Term Planned Expenditures (2016-2021)
$18,477,849 $31,085,000
Water Fund Balance/Reserves $425,600
Sewer Fund Balance/Reserves $3,938,664
Agency Net Position $35,966,229
Governance
Governing Body 5-member city council; all elected by district
Agency Contact Kirsten Jensen, 951-765-3712, kjensen@cityofhemet.org
Sources: City of Hemet Sewer System Management Plan (2016); City of Hemet Urban Water Management Plan (2016); City of Hemet website;
California Integrated Water Quality System (CIWQS) website; City of Hemet Questionnaire data (2018); 2017-18 Budget; 2017 CAFR
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Growth and Population Projections
Hemet underwent dramatic changes in the early 1960s as the City became a major destination
for senior living as a result of the City’s mild climate and picturesque location. According to the
City’s 2030 General Plan, during an approximately 20-year period of time, over 10,000 homes
were built (primarily mobile homes) in senior oriented communities. As a result, in the 1990
census, the average age in Hemet was over 60.
The late 1990s and the first decade of this century saw another dramatic shift in the City’s
demographics as more families moved to the City. Hemet’s population increased to
approximately 52,000 in 1990 to over 78,000 in 2010, and the average age dropped from over
60 years to just over 39 years of age. As of January 2017, the City is estimated to be home to
approximately 81,868 residents.1 According to the Southern California Association of
Governments (SCAG), Hemet is projected to grow to a population of 169,636 by 2030.
Disadvantaged Unincorporated Communities (DUCs)
Riverside LAFCO has determined that there are 11 DUCs within the City of Hemet’s sphere of
influence. Two are located adjacent to the western edge of the City and nine are located
adjacent to the eastern edge of the City. The two DUC areas located on the western edge are
located within the Eastern Municipal Water District which can provide both water and sewer
services. The nine DUC areas located on the eastern edge are located within the Lake Hemet
Municipal Water District which can provide both water and sewer services.
Present and Planned Capacity of Public Facilities
Water
As stated previously, three water agencies serve the City of Hemet: the City of Hemet Water
Department, the Eastern Municipal Water District, (EMWD), and the Lake Hemet Municipal
Water District (LHMWD).
1. City of Hemet Water Department
The City supplies potable water within a 5.25-square-mile service area located mostly within
the central part of the incorporated City. The City relies on groundwater as its supply source,
which is pumped by 11 City-owned wells, of which nine are in the Hemet Groundwater Basin
and two are within the San Jacinto Groundwater Basin.
According to the City’s Urban Water Management Plan (2015), the City plans to continue to
use local groundwater as its primary supply source through 2030 and recognizes the need to
implement a combination of basin recharge measures through both natural and artificial means
and water conservation measures. In addition, the City has one connection with an EMWD
well to be accessed on an as-needed basis only.
1 California State Department of Finance, Demographic Estimates (2017)
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The City estimates that demand for water within its service area will increase from 5,767 acre-
feet to 6,370 acre-feet from 2005 to 2030. Groundwater supplies will meet demand assuming
Hemet and San Jacinto Groundwater Basins recharge efforts are successful. To further
improve system reliability, the City plans to add a new two million gallon reservoir to the water
system to increase storage capacity and allow for flexibility should an existing reservoir need
to be taken offline for cleaning or maintenance.
Aging infrastructure, which is deteriorating or of obsolete design, is a growing concern in the
older sections of the City. Replacement of deteriorating or inadequate water lines may be
needed to ensure the efficient provision of water supplies over time. Additionally, some of the
City’s water lines are located within easements along rear property lines instead of within
streets or alleys. Although this does not affect the function of the lines, it does make
maintenance, repair, or replacement difficult.
Supply and Demand Assessment
During normal water years, no reductions in supply are expected for any of the City’s supplies.
The projected normal water year supplies and demands from 2020 to 2040 are show in Table 11
below. The source water supply is larger than demand in all years, and the City is not expected
to have any supply shortfalls during normal water years or during single-dry water years as
shown in Tables 11 and 12 below.
Table 11 – City of Hemet Normal Year Water Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 5,542 5,542 5,542 5,542 5,542
Demand Totals 4,860 4,960 5,040 5,110 5,150
Difference 682 582 502 432 392
Source: Hemet UWMP (2015)
The projected single-dry water year supplies and demands from 2020 to 2040 are shown in
Table 12.
Table 12 – City of Hemet Single-Dry Year Water Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 5,542 5,542 5,542 5,542 5,542
Demand Totals 4,960 5,060 5,140 5,210 5,250
Difference 582 482 402 332 292
Source: Hemet UWMP (2015)
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2. Eastern Municipal Water District
EMWD’s 555-square mile service area extends from Moreno Valley to Temecula. Portions of
the City of Hemet service are located within EMWD’s East Valley Service Area, which
generally serves the area south of Stetson Avenue, west of Sanderson Avenue, and north of
Menlo Avenue and the area to the west and south of the City. Within the East Valley Service
Area, most of the water used comes from a system of 13 local wells located in the San Jacinto
Groundwater Basin. These wells produce almost 20,000 acre-feet of water every year. This is
also the primary source of the water that EMWD sells to the City of Hemet Water Department
and LHMWD.
Other sources of water include water purchased from the Metropolitan Water District of
Southern California (MET) and water recycled from EMWD treatment facilities. EMWD
anticipates increased demand for water in its service area, which is largely underdeveloped.
EMWD intends to use imported water from MET to help recharge the San Jacinto
Groundwater Basin and increase reliability. Recycled water use is expected to increase
significantly as infrastructure is expanded for industrial, agricultural, and landscape purposes.
3. Lake Hemet Municipal Water District
Lake Hemet Municipal Water District’s (LHMWD) 26-square-mile service area includes the
eastern portion of the City, unincorporated East Hemet and Valle Vista, and rural areas outside
of the City’s sphere of influence. LHMWD operates 11 wells along the San Jacinto River for
most of its annual water supply. Of the District’s total annual water supply of approximately
17,000 acre-feet, 20 percent comes from the surface water of the San Jacinto River system,
four percent is imported from EMWD, and the remainder comes from the aforementioned
wells.
LHMWD plans to add to capacity in the near future by drilling another well and by constructing
a new 500,000-gallon storage reservoir near Hop Patch Road. LHMWD also intends to
increase its use of EMWD recycled water for agricultural use by constructing a pipeline and
pump station. LHMWD maintains Lake Hemet in the mountains southeast of Hemet as a
reservoir and recreational facility. LHMWD predicts that the population it serves will increase
from 39,111 in 2005 to 49,512 by 2025. To meet demand, LHMWD is relying on the successful
recharge of the San Jacinto Groundwater Basin; however, it is also increasing its use of
recycled water for agricultural use and constructing a membrane filtration plant to enable the
use of surface water from the San Jacinto River for potable use.
Wastewater (Water Reclamation)
The City of Hemet owns and operates a wastewater collection system. The City provides
wastewater collection within the City’s water service area – a 5.25-square-mile service area
located primarily within the central part of Hemet. The City’s system consists of 140 miles of
gravity sewer, 1,846 manholes and approximately 12,000 connections. The system is aging.
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Thirty percent of the sewer lines were installed between 1940 and 1959, 60 percent between
1960 and 1979, and 10 percent between 1980 and 1999. According to the California
Integrated Water Quality System (CIWQS), the sewer system serves a population of 29,972.
The City does not own or operate wastewater treatment facilities. The City has an agreement
with EMWD for treatment of all wastewater generated within the City of Hemet. The
wastewater from the City system flows directly into the EMWD system through a series of
inter-connections between the two systems. The City’s wastewater is treated at the EMWD
San Jacinto Regional Water Reclamation Facility.
The City ‘s Sewer System Master Plan was completed in January 1991, and most recently
updated in 2016. The sewer collection system was found to be “of adequate capacity to
service the existing and the projected service area.” Results of the computer modeling
indicated the majority of the interceptors and trunk sewers of the system were adequate in
terms of flow capacity for 1990 conditions. Only four sewer line segments (totaling 4,355 feet)
were found to be under capacity for projected 2010 conditions. Improvements have been
made on several of these lines.
Since 1990, the sewer collection system has remained virtually the same in terms of size of
the service area, miles of lines, number of manholes, service connections, and number of
people per dwelling unit. The service area was 80 percent built out in 1990, approximately 85
percent built out in 2010, and remains virtually the same in 2015.
Emergency Preparedness (Supply Interruption Capability)
According to the City’s Sewer System Management Plan (2016), the City sets aside funds
each year for training and education of sewer system collection operators to ensure they are
current on the use of new technology. All staff members participate in bi-weekly safety
meetings, and contractors are required to have appropriate training to ensure that work
performed exceeds or is comparable to work performed by City staff.
Critical spare parts have been identified, and an adequate inventory of replacement parts is on
hand to help assure uninterrupted service in the event of an emergency. This inventory
includes pipe and fittings of various sizes, and high-pressure cleaning hoses. These items are
immediately replaced after use to assure the inventory contains critical parts needed for
system operation and maintenance. In preparation for responding to potential system failures
and overflows, the City has also developed a Sewer Response Flow Chart to guide sewer
maintenance personnel in responding to overflow situations.
According to the City’s UWMP (2015), a water shortage could exist based upon the
occurrence of one or more of the following conditions: a major failure of any or all supply,
storage or distribution facilities of the City water and reservoir system; a water supply shortage
due to the inability to meet acceptable water quality standards mandated by the state health
department; a general water supply shortage due to increased demand or limited supplies; a
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City of Hemet
decline in the underground aquifer as measured by the height of water in the wells; and/or a
complete power failure of all four electrical connections from Southern California Edison.
According to the City, the City’s Water Department would be able to maintain minimum water
supply to all of its customers using only auxiliary connections from the Eastern Municipal
Water District and Lake Hemet. The City water superintendent or a designated representative
has the authority to invoke emergency water shortage response restrictions when a major
failure occurs, whether temporary or permanent, in the supply, the water quality, the
distribution lines or the reservoirs of the City’s water system.
Financial Ability to Provide Services
In July 2015, the California State Auditor informed the City that it had been selected for review
under the high-risk local government agency audit program. The program authorizes the State
Auditor to identify local government agencies that are at high risk for potential waste, fraud,
abuse, or mismanagement, or that have major challenges associated with their economy,
efficiency, or effectiveness. The State Auditor conducted an initial assessment of Hemet in
July and August 2015. No conditions related to fraud or abuse were identified, however the
Auditor did identify concerns regarding Hemet’s persistent budget deficits and high retiree
medical benefit costs.
In December 2015, Hemet provided the State Auditor with an update on its progress in
addressing the identified risk factors. In particular, Hemet indicated that it had made
substantial progress in reducing its retiree medical costs by creating an incentive program to
encourage retirees enrolled in its most expensive health care plan to switch to a lower cost
plan. Despite Hemet’s ongoing efforts to reduce costs and generate additional revenue (e.g.,
the City’s placement of a proposed ten-year, one percent special purpose sales tax designated
for public safety which failed to achieve the necessary two-thirds voter approval), the City
continues to struggle financially. Further, high turnover of key leaders in city government –
chiefly the city manager – has limited Hemet’s ability to plan for the future.
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Table 13 – City of Hemet Financial Information
FY 2014-15 FY 2015-16 FY 2016-17
Total City Revenues $ 56,805,899 $ 66,863,076 $ 53,351,632
Total City Expenditures -62,282,483 -62,349,290 -52,234,769
Revenues minus Expenditures $ -5,476,584 $ 4,513,786 $ 1,116,863
Total City Net Position – Unrestricted $ -46,192,619 $ -50,105,171 –
Water Fund
Water Fund Revenues $ 7,089,911 $ 10,305,759 $ 11,460,332
Water Fund Expenditures -7,919,382 -7,895,756 -9,965,632
Revenues minus Expen ditures $ -829,471 $ 2,410,003 $ 1,494,700
Ending Net Position $ 7,346,200 $ 6,297,375 $ -10,965,586
Sewer Fund
Sewer Fund Revenu es $ 2,875,575 $ 3,412,341 $ 3,903,793
Sewer Fund Expenditures -2,201,325 -2,075,025 -2,279,995
Revenues minus Expenditures $ 674,250 $ 1,337,316 $ 1,623,798
Ending Net Position $ 4,607,135 $ 5,944,451 $ 7,568,249
Sources: City CAFRs 2015, 2016 & 2017
There are seven primary areas, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water and sewer service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratio of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
1. 3-Year Revenue/Expenditure Budget Trends
The water fund overall has been experiencing a moderate surplus as well as occasional deficit
spending over the last several years. However, this has been attributed primarily to planned
capital expenditures and cash flows due to fluctuating water sales. The sewer fund has been
consistently in the positive with excess funds being set for future capital improvements. A rate
increase plan was adopted by the City Council in December 2016 and has been implemented
in 2017 to accommodate these changes in water uses, planned expenditures for infrastructure,
and to establish an emergency fund for rate stabilization into the future.
2. Ratios of Revenue Sources
The City receives 98 to 99 percent of its water fund and sewer fund revenues from charges
and fees for services, no revenue from property taxes, and about 1 to 2 percent from
miscellaneous other sources.
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3. Ratio of Reserves or Fund Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted cash reserve or fund balance the service fund
maintains in relation to the annual fund expenditures. The City’s Water Fund balance ratio is
approximately 90 percent of annual expenditures. This fund ratio represents a positive ratio
position and the reserve has been increased over time. The City's Sewer Fund balance ratio is
approximately 200 percent of annual expenditures including debt service for facilities and
wastewater treatment capacity, a very positive ratio position.
The ratios of unrestricted reserves for both the water fund and sewer fund reflect an
appropriate balance for typical enterprise fund services; this minimizes the impact that
negative economic factors might have on more elastic revenues due to varying water sales
based upon the economic picture and possible drought over the past ten years.
The City has been in difficult financial times for several years. The budget transmittal and audit
messages outline that cost containment actions have been taken over the past two to four
years to reduce deficit spending that drew down unrestricted funds to a negative balance. The
unraveling of the redevelopment agency program and requirement to address pension liability
has placed added pressures on City net position and financial balances. The City audit notes a
$1,000,000 reserve for emergency contingency but no unrestricted funds are available to meet
this identified need at this time. All other funds of the City are in restricted or committed
categories at this time other than the Water Fund and Housing Fund, which are operated as
proprietary funds.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The City reports no outstanding debt for the Water or Sanitation Funds in annual audits
reviewed.
5. Rate Structures
The City Council adopted a water rate increase that became effective January 1, 2018. Fixed
monthly charge (¾” meter) is $30.49 per month and the commodity rate is $4.54 per 100 cubic
feet of usage. The City does not use a tiered rate structure.
Sewer rates were increased in the 2017 Fiscal Year to $37.83 per EDU (Equivalent Dwelling
Unit) per month fixed charge including collection service by the City and wastewater treatment
by EMWD. These rates address needed funds due to increases in operating costs, capital
replacement projects, lower water sales and the need for emergency rate stabilization funds.
The City has no standby charges. Water services rendered for single family properties for less
than 30 days are charged a minimum Temporary Water Fee of $52 as set by the current City
resolution.
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6. Capital Improvement Program/Plan
The City adopted a Five-year Capital Improvement Program/Plan (CIP) in July 2015
(Resolution 4640) that outlined a comprehensive analysis of all City facilities for the next five
years including water and sewer facilities. The 2015-16 projects for water totaled $7,125,000,
and for sewer $50,000 was allocated for a Master Plan. The 2015-16 to 2019-20 CIP for water
totaled $22.3 million including new wells, water quality systems, pipeline replacements and
upgrades. The sewer CIP totaled $9.6 million for two major pipe replacement projects over
four years.
7. Pension Liability and Other Post-Employment Benefits Liability
As most cities and government agencies in California, the City has a pension Liability and Post
Employment Liability. The 2017 CAFR reports that the City has a $54,222,755 unfunded
pension liability and is making the required payments to offset the liability over time. The City
has entered into a program for OPEB obligations which include healthcare medical benefits for
retirees and spouses and is paying them on a pay/go basis. The unfunded liability in 2017 was
$9,710,323, and in 2017 paid an amount of $423,610 toward the program.
A full explanation of pension liability and OPEB is contained in the Notes section of the 2017
CAFR.
Status and Opportunities for Shared Facilities/Services
The City of Hemet shares municipal services in a variety of ways, including:
• The Hemet Fire Department has formal mutual aid agreements with many fire service
agencies within the western Riverside County area.
• The City has an agreement with Eastern Municipal Water District (EMWD) for treatment
of all wastewater generated within the City of Hemet. The wastewater from the City
system flows directly into the EMWD system through a series of inter-connections
between the two systems. The City’s wastewater is treated at the EMWD San Jacinto
Regional Water Reclamation Facility.
• The City’s Animal control services are provided through a contract with the Ramona
Humane Society.
• The City has a Franchise Agreement with CC&R, Inc. for refuse and recycling collection
services.
Government Structure and Accountability
The Hemet City Council consists of five members who serve four-year, staggered terms. In
2016, elections were switched from “at-large” to “by-district”. Annually, the City Council
appoints a mayor and a vice mayor from its own membership to serve a one-year term. City
Council meetings are held on the second and fourth Tuesdays of each month in the Council
Chambers, located at 445 East Florida Avenue, Hemet, CA 92543. Reasonable arrangements
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are made for those citizens with disabilities when the City is notified at least 48 hours in
advance of a meeting.
Table 14 – City of Hemet City Council Members
City Council Member Term Expires
Bonnie Wright, Mayor (District 4) November 2020
Russ Brown, Mayor Pro-Tem (District 5) November 2022
Michael Perciful (District 3) November 2020
Karlee Meyer (District 1) November 2020
Linda Krupa (District 2) November 2020
The City’s website is user friendly and posts meeting notices, City Council meeting agendas
and minutes, email addresses and cell phone numbers of each Council member, and a staff
directory of department heads and key staff members. The site also posts updates on current
city events and news. Through the City’s cable franchise agreements, the City owns and
operates a government television channel. The City of Hemet’s TV station currently broadcasts
prerecorded video of meetings and special events sponsored or co-sponsored by the City. The
City runs public service messages while prerecorded video is not on the air. This service is
free for government and educational organizations.
Based upon past and current service provision practices, it is reasonable to conclude that
appropriate levels of public services can continue to be provided by the City of Hemet to
current and future populations under the existing government structure. No alternative
government structure options were identified for further consideration at this time.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
At the turn of the century, the area that would become the City of Norco consisted of an open
range of the Rancho La Sierra. Unlike other ranchos in Southern California, this one remained
undivided well past the boom years of the late nineteenth century. The property’s owner,
Stearns Rancho Company, held onto the land with a desire to sell the entire property to a
potential developer. In 1908, Willits J. Hole and George Pillsbury bought the land for $500,000
and subdivided the rancho east of the Norco Hills into farm and town lot parcels. Most of the
land west of the Norco Hills was sold to investors.
Rex Clark, a businessman and promoter, played an influential role in the development of five
Norco Farms subdivisions in the 1920s which provided an opportunity for buyers to build
modest homes, plant gardens, and raise livestock. Clark provided markets for their farm
products and built a local school which served Norco’s residents from 1924 to 1947. Horses
were a significant part of early Norco’s everyday life, used for transportation, recreation and
farming. That tradition has continued – today, the City (nicknamed “Horsetown USA”) has over
140 miles of horse trails.
In 1924, the discovery of mineral hot springs led Clark to develop the 700-acre Norconian
Resort which included a large hotel, lake, golf course and other amenities to further draw
visitors and potential home buyers to Norco. Unfortunately, the resort was completed just
before the start of the Great Depression and never achieved the success anticipated by its
builder. Today, its grounds are divided between a weapons research facility and a state prison.
The City of Norco officially incorporated on December 21, 1964.
Located in the northwest corner of Riverside County, the City of Norco is bordered to the east
by the City of Riverside, the City of Corona to the south, and the Cities of Jurupa Valley and
Eastvale across the Santa River to the north. The City is physically defined by natural borders
along its northwest side, and along its eastern boundary, that separates it from adjoining
communities. The City’s sphere of influence is approximately 334 acres (see Exhibit 4), leaving
little opportunity for large scale development. LAFCO last updated the Norco sphere in 2005.
According to the City, future development will likely be limited to commercial, industrial and/or
infill development.
The City provides a full array of municipal services to its residents. Police service is provided
through contract with the Riverside County Sheriff’s Department, and the City uses contract
services for its City Engineer and Water/Sewer Manager. The City of Norco is also a member
of two JPAs: the Chino Basin Desalter Authority (water treatment) and the Western Riverside
County Regional Wastewater Authority (sewer treatment). In both cases, multiple regional
partners work together to fund regional services and solutions to meet local area needs.
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The City does not provide municipal services outside its boundaries with one exception.
According to the City, there are approximately 20 homes (located on Bluff Street, east of the
Santa Ana River, just outside the southwesterly boundary of the City) which could be provided
both water and sewer service through the City. A few of these homes have elected to connect
to the City’s sewer system. Additionally, the City has indicated that undeveloped land within its
sphere outside the northeast corner of the City, south of the Santa Ana River, could also be
provided water and sewer service by the City should the property develop in the future. To
provide that service, the City would be required to enter into an out-of-area service agreement
approved by LAFCO.
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Exhibit 4 – City of Norco
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City of Norco - Agency Profile
General Information
Agency Type General Law City
Date Formed Incorporated December 21, 1964; became a Charter City in 2003
Services Full service; police service provided by contract with Riverside County Sheriff’s Department
Service Area
Location Northwest Riverside County; City of Riverside to the east; City of Eastvale to the north; City
of Corona to the south
Square Miles/Acres Approximately 15 square miles/9,600 acres
Total Water/Sewer Connections Water: 7,500 connections Sewer: 6,954 connections
Population Served 25,890
Water Infrastructure
Facilities 7 reservoirs; 4 wells; 3 outside connections; 1 treatment facility
Storage Capacity 9 million gallons (7 reservoirs)
Primary Source of Supply Groundwater (15%) and Imported (85%)
Water Rates (single-family home) $2.12 per HCF fixed rate; under severe water shortages, a “drought surcharge rate” ($0.37
to $1.73 per HCF) can be charged.
Sewer Infrastructure
Facilities 106 miles of pipeline; 12 lift stations
Current and Projected Treatment 2.7 MGD through Western Riverside County Regional Wastewater Authority; 100,000 GPD
Capacity through City of Corona
Primary Disposal Method City is a member agency of Western Riverside County Regional Wastewater Authority
which treats wastewater to tertiary level
Sewer Rates (single-family home) $51.00 per month, fixed rate
Budget Information - FY 2017-2018 (Water & Sewer Funds)
Revenues Expenditures Net Surplus/(Deficit)
Water Fund $10,781,945 $10,053,385 $734,561
Sewer Fund $7,538,268 $6,265,527 $1,272,741
Combined City Funds $18,320,213 $16,318,912 $2,001,301
Capital Expenditures FY 2017-2018 Long-Term Planned Expenditures
Water -$4,665,000 Water - FY 17-18 through FY 21-22:
$22,768,531
Sewer (Facilities) - $4,015,000 Sewer (Facilities Fund) - FY 17-18 through
FY 21-22: $ 18,775,000
Sewer (Connections) - $25,000 Sewer (Connections Fund) - $100,000
Water Fund Balance/Reserves $2,720,599
Sewer Fund Balance/Reserves $6,905,069
Agency Net Position $9,625,688
Governance
Governing Body 5-member city council; meets 1st and 3rd Wednesdays, 6 PM, City Hall
Agency Contact Chad Blais, Director Public Works, 951-270-5678, cblais@ci.norco.ca.us
Sources: Norco UWMP (2015); City website; City municipal questionnaire; Adopted 17-18 Budget; Adopted 5-Year Capital Improvement
Program/Plan FY 18-22
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Growth and Population Projections
The California State Department of Finance estimates the City’s 2017 population to be 26,882.
As expected in an area reaching build-out conditions, the City’s projected population over the
next 25 years is expected to slow significantly when compared to growth experienced in
previous decades. Between 2015 and 2040, growth is expected to increase by approximately
12 percent, or 3,410 residents.
Table 15 – City of Norco Population Projections, 2015-2040
2015 2020 2025 2030 2035 2040
25,890 26,800 27,300 27,800 28,800 29,300
Source: City of Norco UWMP (2015)
According to the City’s General Plan, there are 9,808 acres of land within the incorporated
boundaries of Norco. Large lot residential development is the predominant land used in Norco,
comprising 46 percent of the City. Domestic commercial agriculture, including the keeping of
horses and other animals, is common on many of the larger parcels. As a horse community,
there are few sidewalks in Norco. Instead there is an extensive system of horse trails
throughout the community. About 13 percent of the City’s land area is used for commercial and
industrial activities, schools and parks. Open space, streets and freeways comprise about 28
percent of the City.
Disadvantaged Unincorporated Communities (DUCs)
Riverside LAFCO has determined that there are no DUCs within or adjacent to the City of
Norco’s sphere of influence, so no additional analysis is required in this report.
Present and Planned Capacity of Public Facilities
The City is the sole water purveyor for the residents and businesses of Norco. The City also
provides sewer collection service, but treatment is performed through the Western Riverside
County Regional Wastewater Authority and the City of Corona. Both the City’s water and
sewer infrastructure systems are aging. In the July 1, 2017 Budget Report, the Norco Mayor
indicated that “along with the challenge of maintaining a balanced operating budget, the City
must also find sustainable revenue sources to support the timely maintenance and
replacement of the City’s aging governmental infrastructure and other capital facilities.
Currently, it is estimated that the City has annual funding gap of $4.5 million in governmental
infrastructure and facilities.”
Water
According to the City’s Urban Water Management Plan (2015), the City’s water service area
encompasses approximately 15 square miles. The service area is divided by the Interstate 15
Freeway which runs north and south through the City. The City’s water infrastructure system
consists of four active wells, three purchased water connections, one treatment facility and
seven reservoirs with a capacity of nine million gallons. City water supplies are obtained from
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both imported (purchased) water sources and groundwater sources. During 2016, the City’s
water supply consisted of approximately 85.5 percent purchased treated water and 15.5
percent groundwater.2 The most recent City Water Quality Report (2016) indicates that while
the City’s drinking water supply meets all state and federal water quality standards, the City’s
groundwater wells contain arsenic above the MCL.
Imported Water (Purchased)
The City's imported water is supplied by the Metropolitan Water District (MET) and purchased
through the Western Municipal Water District (WMWD), a member agency of MWD. The City’s
imported water supply consists of treated water supplied via the Mills Pipeline from
Metropolitan Water District Southern California’s Henry J. Mills filtration plant to the City of
Corona, then wheeled through a metered connection to the City. Over the last decade, the
City’s potable water supply has shifted to rely primarily on local and regional groundwater
supplies with minor deliveries of water imported from WMWD.
Groundwater
The City’s service area and distribution system overlies the Temescal Groundwater Basin, with
a small the portion of the service area overlying the southern end of the Chino Groundwater
Basin. The majority of the City’s groundwater supplies are pumped from the Temescal and
Chino groundwater basins. The Chino Groundwater Basin is an adjudicated basin, managed
by the Chino Basin Watermaster. In addition, the City is a member agency of the Chino
Desalter Authority (CDA), a Joint Powers Authority, with an annual obligation to purchase
1,000 AFY of reverse osmosis treated potable groundwater water. The City also entered into a
purchase water agreement with WMWD to purchase a minimum of 4,400 AFY of treated
groundwater annually from the Arlington Desalter reverse-osmosis treatment facility.
Supply and Demand Assessment
During normal water years, no reductions in supply are expected for any of the City’s supplies.
The projected normal water year supplies and demands from 2020 to 2040 are show in Table 16,
below. The source water supply is larger than demand in all years, and the City is not expected
to have any supply shortfalls during normal water years or any issues providing a reliable and
consistent supply of water.
Table 16 – City of Norco Normal Year Water Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 10,825 11,0251 11,025 11,025 11,025
Demand Totals 7,008 7,170 7,182 7,194 7,150
Difference 3,817 3,885 3,843 3,831 3,875
Source: Norco UWMP (2015)
2 City of Norco Water Quality Report (2016)
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The City does not treat surface water and does not have any local surface water sources.
During single dry years, there may be up to a 50 percent curtailment in the City’s surface water
supplied by WMWD. Because the City’s surface water supply is the only supply that is
considered to be susceptible to dry water years, and because the City only relies on surface
water in emergency situations, this would not affect single-dry year demands. No reductions
are assumed for the City’s purchased, water, groundwater, or recycled water supplies. The
projected single-dry water year supplies and demands from 2020 to 2040 are shown in
Table 17.
Table 17 – City of Norco Single-Dry Year Water Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 10,825 11,0251 11,025 11,025 11,025
Demand Totals 7,008 7,170 7,182 7,194 7,150
Difference 3,817 3,885 3,843 3,831 3,875
Source: Norco UWMP (2015)
Groundwater Pumping
According to the City’s Urban Water Management Plan (2015), the groundwater basins
underlying the City of Norco have undergone significant changes since groundwater
development began in the early 1900s. Since that time, the basins have supported a variety of
uses including extensive agricultural irrigation and increasing urban use. Early agricultural
activities in the basin were supplemented by diversions of surface water imported into the
basin.
Groundwater pumping has varied over time. In the late 1940s, the total amount of groundwater
pumping in the basin was about 20,000 AFY. That amount increased to between 25,000 AFY
and 32,000 AFY from the late 1950s to the mid-1970s. Total groundwater pumping decreased
to below 20,000 AFY in the 1980s and early 1990s due to a decrease in agricultural irrigation
but has increased to about 25,000 AFY in recent years due to municipal pumping.
Wastewater (Water Reclamation)
The City owns and operates a sanitary sewer collection system that includes 11 lift stations
and approximately 106 miles of pipeline. Approximately ten percent of the sewer lines were
installed between 1960 and 1979, 65 percent between 1980 and 1999, and 25 percent after
2000.3 The City is a member agency of the Western Riverside County Regional Wastewater
Authority (WRCRWA), a Joint Powers Authority, which provides regional sewage treatment
and disposal services. In addition to Norco, there are five additional agencies which have the
right to discharge to the WRCRWA treatment facility and collection system: Home Gardens
3 Regional Water Quality Control Board, CA Integrated Water Quality System Report (2017)
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Sanitary District, Jurupa Community Services District, Western Municipal Water District, the
Santa Ana Watershed Project Authority and the City of Corona.
The City of Norco owns 27.5 percent of the WRCRWA treatment facility’s total capacity, or 2.7
million GPD. The City also owns 100,000 GPD of sanitary sewer collection capacity and
wastewater treatment capacity in the City of Corona wastewater system. Wastewater is treated
at a tertiary level and is discharged into the Santa Ana River after treatment.
In 2007, the City designed and constructed a recycled water distribution system to deliver
recycled water to all municipal facilities. The recycled water distribution system currently
consists of approximately eight miles of pipeline with a storage reservoir, two booster pump
stations, and two pressure reducing stations. Although the City has constructed the backbone
infrastructure to provide recycled water, the City currently does not provide recycled water.
Future recycled water customers will include golf courses, municipal parks, landscape
maintenance districts, schools, dual plumbing, agriculture, and freeway landscaping.
Emergency Preparedness (Supply Interruption Capability)
Extended multi-week supply water shortages are unlikely due to natural disasters or accidents
which damage all water sources. As discussed previously, the City has the ability to produce
water from three individual groundwater basins creating water production flexibility. The City
also maintains a sound preventative maintenance program for its water distribution system.
According to the City, auxiliary generators are available, and improvements have been made
to water facilities to minimize loss of these facilities during an earthquake or any disaster
causing an electric power outage. The City has also entered a MOA with Western Municipal
Water District to receive their CDA water and is currently updating its Water Master Plan.
The City has developed an SSMP for sewer operations which includes appropriate personnel
listings, resource inventories, locations for emergency operations centers, response
procedures, and the steps necessary to resume normal operations.
Financial Ability to Provide Services
As of June 30, 2017, the City was able to report a positive increase in its Net Position, the
value of assets and funds on hand for operations and capital investment, to $266,897,758, an
increase of $2,315,097 over the prior year and an increase in balance in its unrestricted net
position to $27,996,922. On June 30, 2017, the Water Fund Net Position balance was
$28,037,131. This is an increase of $2,003,818, during a period of drought including demand
management restrictions and slightly less sales overall. The Water Fund Unrestricted Net
Position was $8,041,490.
On June 30, 2017, the Sewer Fund Net Position balance was $30,132,304. This is an increase
of $1,445,894 over the prior year. The Sewer Fund Unrestricted Net Position was
$16,760,640. In December 2016, the City Council adopted a Water Rate increase to provide
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additional funds for operations and capital replacements and a rate stabilization emergency
fund.
Table 18 – City of Norco Budget Information
FY 2015-16 FY 2016-17 FY 2017-18
Total City Revenues $ 35,505,963 $ 44,990,378 $ 40,985,259
Total City Expenditures -34,530,983 -38,487,691 -38,670,162
Revenues minus Exp enditures $ 975,000 $ 6,502,687 $ 2,315,097
Ending Net Position $ 255,609,717 $ 264,582,661 $ 266,897,758
Water Fund
Water Fund Reve nues $ 8,990,376 $ 8,573,495 $ 11,352,560
Water Fund Expenditures -9,278,216 -9,673,588 -9,348,742
Revenues minus Expen ditures $ -287,840 $ -1,100,093 $ 2,003,818
Ending Net Position $ 24,489,689 $ 26,053,313 $ 28,037,131
Sewer Fund
Sewer Fund Revenu es $ 12,754,611 $ 6,696,737 $ 7,497,922
Sewer Fund Expenditures -5,837,355 -6,315,558 -6,052,038
Revenues minus Expen ditures $ 6,917,256 $ 381,179 $ 1,445,894
Ending Net Position $ 426,355,982 $ 28,686,410 $ 30,132,304
Sources: City CAFRs 2015, 2016 & 20 17
There are seven primary areas, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water and sewer service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratio of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
1. 3 Year Revenue/Expenditure Budget Trends
The water fund overall has been experiencing a slight surplus as well as occasional deficit
spending over the last several years. However, this has been attributed primarily to planned
capital expenditures and cash flows due to lower water sales. A rate increase plan was
adopted by the City Council in December 2016 and has been implemented in 2017 to
accommodate these changes in water uses, planned expenditures for infrastructure, and to
establish an emergency fund for rate stabilization into the future.
2. Ratios of Revenue Sources
The City receives 98 to 99 percent of its water fund and sewer fund revenues from charges
and fees for services, no revenue from property taxes, and about 1 to 2 percent from
miscellaneous other sources.
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3. Ratio of Reserves or Fund Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted cash reserve or fund balance the service fund
maintains in relation to the annual fund expenditures. The City’s Water Fund balance ratio is
approximately 86 percent of annual expenditures. This fund ratio represents a positive ratio
position and the reserve has been increased over time. The City's Sewer Fund balance ratio is
approximately 276 percent of annual expenditures including debt service for facilities and
wastewater treatment capacity, a very positive ratio position.
The ratios of unrestricted reserves for both the water fund and sewer fund reflect an
appropriate balance for typical enterprise fund services; this minimizes the impact that
negative economic factors might have on more elastic revenues due to varying water sales
based upon the economic picture and drought over the past ten years.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the City’s
ability to meet debt obligations in relation to service provision expenditures. Ideally, a ratio of
ten percent or less would reflect a very stable ratio. The City’s Water Fund has reasonable
debt, including refinancing of prior debt to reduce long-term expenses and to pay for needed
capital projects over time.
During March 2009, the City issued $39,000,000 Enterprise Revenue Refunding Bonds, Issue
2009, to advance refund $7,395,000 of outstanding 1998 Refunding Certificates of
Participation (Sewer and Water System Refunding Certificates) and $12,209,120 of
outstanding 1996 Variable Rate Revenue Bonds (Western Riverside County Regional
Wastewater Treatment System Lease). In addition, proceeds were used to finance water and
sewer system improvements within the City. The bonds are dated March 18, 2009 with interest
paid at a rate from 3.00 percent to 5.00 percent payable semiannually on April 1 and October
1, commencing on October 1, 2009. As of June 30, 2017, the balance due was $33,710,000.
The Water Fund's annual debt service ratio to total expenditures is approximately 8 percent, a
reasonable ratio. The Sewer Fund debt service ratio to total expenditures is approximately 20
percent, somewhat high but necessary due to the Revenue Bond funded purchase and lease
of additional sewer treatment capacity for the future.
5. Rate Structures
The City Council adopted a Five-year Water and Sewer Rate Study on December 7, 2016 to
become effective in FY 2017. Fixed monthly charges (3/4” meter) range from $35.74 in FY
2017 to $47.80 in FY 2021. The City’s current water user charge is $ 2.12 (increases to $2.70
in 2021) per 100 cubic feet of usage. The City has also adopted “drought surcharge rates” that
can be assessed to all monthly metered water usage under severe water shortages.
Surcharge rates consist of four levels, ranging from $0.37 to $1.73 per 100 cubic feet of usage.
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Sewer rates were increased in the 2017 Fiscal Year to $51.00 per EDU (Equivalent dwelling
unit) per month fixed charge and for non-residential users, an additional charge of $8.00 per
100 cubic feet of usage. These rates address needed funds due to increases in operating
costs, capital replacement projects, lower water sales and the need for emergency rate
stabilization funds. The City has no standby charges.
Table 19 – Adopted Water Rates* – City of Norco, 2017-2021
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Fixed Monthly Charge $35.74 $39.42 $43.27 $47.10 $47.80
User Charge Rate (per HCF) $2.12 $2.22 $2.44 $2.66 $2.70
*Rates based on ¾” meter; rates apply to single-family, multi-family, commercial, industrial, and municipal customers.
Table 20 – Adopted Sewer Rates* – City of Norco, 2017-2021
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Fixed Monthly Charge $51.00 $51.00 $53.81 $56.77 $59.89
User Charge Rate (per HCF) $8.00 $8.00 $8.44 $8.90 $9.39
Monthly Non-Connect Fee $19.00 $19.00 $20.05 $21.15 $22.31
*Monthly fixed charge applies to all customer classes; sewer usage charge excludes single family and irrigation customer classes; monthly non-
connect fee is for single family residential on septic; multi-family customer class is defined as 4 or more dwelling units.
6. Capital Improvement Program/Plan
The City has developed and implemented an aggressive and comprehensive CIP for water
and sewer facility infrastructure improvements. The City’s current 5-Year CIP reflects
approximately $31.9 million in improvements for water infrastructure, with approximately
$4.665 million programmed for FY 2017-18. The City's Sewer CIP for 2017-18 is projected at
$4.015 million for various projects.
The City’s water and sewer infrastructure systems are aging. During FY 2016-2017, the Norco
City Council raised water and sewer rates to address the growing gap between revenues and
expenditures. According to the City, the decision to increase rates was necessary to meet the
City’s fiduciary obligation to ensure that rates are adequate to cover the cost of operations,
maintenance and capital replacement.
The City’s water and sewer funds do not receive tax revenues and must recover the cost of
providing services through user rates. With the rate increase, both the water and sewer funds
are projected to generate sufficient revenues to cover operating costs, build working capital
reserve, fund a rate stabilization reserve and provide for capital investment in water and sewer
infrastructure. When looking at the overall City’s maintenance and replacement needs for
aging governmental infrastructure and other capital facilities (not just water and sewer), the
City estimates an annual funding gap of $4.5 million.
According to the City, the estimated capital project expenditures listed for FY 2018-2022 will
be made over ten years. City staff estimates that sufficient revenues will be generated over
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this ten-year period to cover the cost of the planned capital improvements. The estimated
deficit fund balance shown on the tables below, beginning in FY 2017-2018, is a result of
compressing projects to be funded over ten years into a Five-Year Capital Improvement
Program/Plan Budget and the non-recognition of future revenues to be transferred from the
water operations fund for capital project expenditures. Over the next ten years, the City
anticipates spending $18.8 million on sewer system improvement projects and $31.9 million on
water system improvement projects.
Table 21 – Five-Year CIP Source of Funds – Sewer Fund 147
Sources of Funds FY 2017-2018 FY 2018-2019 FY 2019-2020 FY 2020-2021 FY 2021-2022
Beginning Balance $ 3,448,783 $ 923,516 $ -1,531,885 $ -4,893,983 $ -8,888,943
Impact Fees 547,962 – – – –
City of Corona 25,443 25,443 25,443 24,443 24,443
Repayment - Silverlakes 292,876 292,876 292,876 292,876 292,876
County Flood Control 600,000 840,000 380,000 – –
Investment Earnings 23,452 6,280 -10,417 -33,279 -60,445
Total $ 4,938,516 $ 2,088,115 $ -843,983 $ -4,608,943 $ -8,631,069
Source: Norco Adopted 2018-22 CIP
Key sewer improvement projects included in the City’s CIP are, among others, WRCRWA and
recycled water system improvements, lift station rehabilitation, main line replacements, yard
security improvements and a new vactor truck.
Table 22 – Sewer CIP Projects - FYs 2018-2022
FY 2017-2018 FY 2018-2019 FY 2019-2020 FY 2020-2021 FY 2021-2022
Use of Funds $ 4,015,000 $ 3,620,000 $ 4,050,000 $ 4,280,000 $ 2,810,000
End Balance $ 923,516 $ -1,531,885 $ -4,893,983 $ -8,888,943 $ -11,441,069
Source: Norco Adopted 2018-22 CIP
Table 23 – Five-Year CIP Source of Funds – Water Fund 144
Sources of Funds FY 2017-2018 FY 2018-2019 FY 2019-2020 FY 2020-2021 FY 2021-2022
Beginning Balance $ 3,846,391 $ 177,791 $ -6,883,802 $ -14,528,413 $ -22,900,009
Impact Fees 198,047 – – – –
Transfer from Water Operations Fund – – – – –
EPA Grant 485,000 – – – –
Repayment - Silverlakes 287,198 287,198 287,198 287,198 2287,198
Investment Earnings 26,115 1,209 -46,810 -98,793 -155,720
Total $ 4,842,791 $ 466,198 $ -6,643,413 $ -14,340,009 $ -22,768,531
Source: CAFRs 2014-15, 2015-16, 2016-17
Key water improvement projects included in the City’s CIP are, among others, Supervisory
Control and Data Acquisition (SCADA) upgrades, water line relocations and replacements,
reservoir replacements and water treatment system upgrades.
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Table 24 – Water CIP Projects - FYs 2018-2022
FY 2017-2018 FY 2018-2019 FY 2019-2020 FY 2020-2021 FY 2021-2022
Use of Funds $ 4,665,000 $ 7,350,000 $ 7,885,000 $ 8,560,000 $ 3,410,000
End Balance $ 177,791 $ -6,883,802 $ -14,528,413 $ -22,900,009 $ -26,178,531
Source: Norco Adopted 2018-22 CIP
7. Pension Liability and Other Post-Employment Benefits Liability
The City provides pension benefits to employees and beneficiaries as long as they meet plan
requirements. The City does not list any Post Employment Health Benefits in its
Comprehensive Annual Financial Report (CAFR). Governmental Accounting Standards Board
(GASB) reporting requirements changed in 2016 to require recording these liabilities to the
financial reports and balance sheet. The City reports in the 2017 CAFR an approximate liability
for pensions of $17,182,219 and no unfunded payments. The City paid $2,189,772 toward
pension liabilities in FY 2016-17.
A detailed description of the programs and expenses is provided in the annual CAFR on the
City’s webpage.
Status and Opportunities for Shared Facilities/Services
The City of Norco police service is provided through contract with the Riverside County
Sheriff’s Department, and the City uses contract services for its City Engineer and
Water/Sewer Manager. The City of Norco is also a member of two JPAs: the Chino Basin
Desalter Authority (water treatment) and the Western Riverside County Regional Wastewater
Authority (sewer treatment). In both cases, multiple regional partners work together to fund
regional services and solutions to meet local area needs.
Government Structure and Accountability
The City of Norco, a charter city, is governed by a five-member City Council, elected at large.
Meetings are held twice monthly, on the first and third Wednesdays, at 6:00 p.m. in Norco City
Hall located at 2870 Clark Avenue, Norco. Reasonable arrangements are made for those
citizens with disabilities when the City Clerk’s Office is notified at least 48 hours in advance of
a meeting. City Council Chamber seating capacity is approximately 125. Adequate notice is
given to residents for City Council meetings and meetings of the various City Commissions.
Agendas are posted in five places as directed by City Council resolution.
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Table 25 – City of Norco City Council Members
Council Member Term Expires
Ted Hoffman, Mayor November 2020
Robin Grundmeyer, Pro-Tem November 2020
Kevin Bash November 2022
Berwin Hanna November 2020
Greg Newton November 2022
The City’s website is user-friendly and has easy access to City Council agendas, minutes,
public notices, budgets, audits and other key City documents. City Council meetings are
videotaped and accessible for on-line viewing. Phone numbers and email addresses for City
council members are listed as are phone numbers for City department heads. The City also
has Facebook and Twitter accounts and a sign-up service for on-line city news and updates.
As stated previously in this report, the City is bordered on the east and south by the cities of
Riverside and Corona, respectively, and defined by natural borders along its eastern and
northwest boundaries effectively separating the City from adjacent communities. Opportunities
for reorganization with adjoining cities are remote.
The City uses contract services for its City Engineer and Water/Sewer Manager. As a small
municipal services provider with less than 8,000 services, contracting out certain specialized
functions allows the City to use the services of these professionals on “as needed” basis. The
City also participates in joint ventures which allow the City to share operating and fixed
overhead costs with other agencies providing cost savings to the City.
The City of Norco is also a member of two JPAs: Chino Basin Desalter Authority (treated
water) and Western Riverside County Regional Wastewater Authority (sewer treatment). In
both cases multiple regional partners worked together to fund regional services and solutions
to meet area needs.
Based upon past and current service provision practices, it is reasonable to conclude that
appropriate levels of public services can continue to be provided by the City of Norco to
current and future populations under the existing government structure. No alternative
government structure options were identified for further consideration at this time.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
The Perris Valley was actively settled in the 1880s, a boom period for Southern California.
Prior to 1880, the land was used for pastures. The coming of the California Southern Railroad
led to the founding of the City around the new depot. The California Southern was built through
the future town site in 1882 to open a rail connection between the present day cities of
Barstow and San Diego. Perris was originally part of San Diego County, but in 1892 was
transferred to the newly established Riverside County. The City of Perris was incorporated on
May 26, 1911 with an estimated population of approximately 300 residents.
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Exhibit 5 – City of Perris
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City of Perris - Agency Profile
General Information
Agency Type General Law City
Date Formed Incorporated May 26, 1911
Services Fire (contracted with Riverside County Fire), Police (contracted with Riverside County
Sheriff), Public Works, Animal Control, Streets, Parks, Water and Sewer (central portion of
City only)
Service Area
Location The City of Perris is located midway between the San Jacinto and Santa Ana Mountains in
southwest Riverside County, 17.6 miles south of the City of Riverside.
Square Miles/Acres Central core of City of Perris (acreage TBD)
Total Water/Sewer Connections Water: 2,300 (approximately)
Sewer: 2,300 (approximately)
Population Served Total City population: 77,837 (2018); approximately 9,000 water and sewer customers
served by City; balance served by Eastern Municipal Water District
Water Infrastructure
Facilities 48 miles of water pipeline
Storage Capacity 2.5 MG
Primary Source of Supply Imported; City purchases 640 MG annually from Eastern Municipal Water District
Water Rates (single-family home) City uses a 2-tier rate system; $12.92 per month fixed charge plus $2.695 per HCF (0 - 18),
and $5.155 per HCF over 18.
Sewer Infrastructure
Facilities City provides collection services only; 36 miles of gravity sewer
Current and Projected Treatment Treatment through EMWD’s Perris Valley Regional Water Reclamation Facility; 7-year,
Capacity $222 million facility expansion completed in 2014; capacity is 22 MGD.
Primary Disposal Method Wastewater is treated at the Perris Valley Regional Water Reclamation Facility to tertiary
level.
Sewer Rates (single-family home) $45.05 fixed monthly charge.
Budget Information - FY 2017-2018 (Water & Sewer Funds)
Revenues Expenditures Net Surplus/(Deficit)
Water Fund $3,434,900 $10,038,139 $-6,603,239
Sewer Fund $2,000,500 $2,403,537 $-403,037
Combined City Funds $84,164,878 $65,056,335 $19,108,543
Capital Expenditures FY 2017-1018 Long-Term Planned Expenditures
$9,551,070 Only 2017-18 in Budget and CIP reports
Water Fund Balance/Unrestricted $-425,731
Reserve
Sewer Fund Balance/Unrestricted $1,821,200
Reserves
Agency Net Unrestricted Position $-3,597,945
Governance
Governing Body 5-member city council, elected at large
Agency Contact Marilyn Fernholz, 951-943-6100, mfernholz@cityofperris.org
Sources: City website; City of Perris Housing Element (2013); Eastern Municipal Water District UWMP (2015); City of Perris Mitigated Negative
Declaration No. 2332 (2018); California Integrated Water Quality System (CIWQS) Report (2018); 2017 CAFR; 2018-19 Budget
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Growth and Population Projections
According to recent Census data, the current population of the City of Perris is 77,837 as of
January 1, 2018. Population in Perris was relatively stable between 1970 and 1980; however,
after 1980, the City experienced a rapid increase in population.
Between 1980 and 1990, the City’s population increased 214 percent, between 1990 and 2000
the population increased 68 percent, and between 2000 and 2010 the population increased 35
percent. Future growth estimates predict a continued increase in population, yet at a slower
rate, over the next 20 years. The Riverside County Center for Demographic Research
estimates that the population of Perris will top 84,881 by the year 2030 which represents an
overall population increase of 35 percent between 2010 and 2030.
Disadvantaged Unincorporated Communities (DUCs)
Riverside LAFCO has identified four DUCs within the City’s sphere of influence all located
adjacent to the western edge of the City. All four areas are within the Eastern Municipal Water
District and can be served for both water and sewer services. These areas are identified as
1) Una Street – Alexander Street in Mead Valley; 2) Mead Valley North; 3) Lukens Lane/
W. San Jacinto; and 4) Mead Valley South.
Present and Planned Capacity of Public Facilities
Water
The Eastern Municipal Water District (EMWD) provides and distributes potable water
throughout all but a small portion of the City of Perris and its Sphere of Influence. The City of
Perris Water Department owns and maintains water lines in two water systems. The
“Downtown Water System” is located in the City’s downtown area (generally extending north to
Nuevo Road, west to Arapahoe, south to Mountain Avenue, and east to Redlands Boulevard)
which provides service to 2,366 connections. The “North Perris Water System” is located in the
North Perris area and provides services to approximately 1,357 connections in the Villages of
Avalon.
In November 2017, Perris voters approved a ballot measure (Measure H) authorizing the sale
of the City’s two water systems to Liberty Utilities, a private water purveyor regulated by the
California Public Utilities Commission, for $11.5 million. As reported in City staff reports, the
water systems are currently in debt and have experienced annual operating deficits. According
to the City, the $11.5 million received by the City will be used to retire debt related to the water
systems and upgrade the City’s park system. The sale process is still underway and expected
to be complete by early 2019 after review by the PUC. Until that time, operation and ownership
of the water systems remain with the City.
The Perris Water Department buys all of its water from the EMWD that, in turn, delivers the
water through five metered connections to the Perris Water system. Imported water purchased
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from the Metropolitan Water District of Southern California (MWD) makes up over 75 percent
of the District’s water supply. Of water imported by the District, 75 percent is from Northern
California from the State Water Project, and 25 percent from the Colorado River via the
Colorado River Aqueduct and Lake Perris. MWD potable water from the State Water Project
water is piped into the EMWD system serving the northern section of Perris from the Mills
Filtration plant north of the City. The Skinner Filtration Plant south of the City supplies water to
the southern portion of Perris from both the California Water Project and the Colorado River
Aqueduct. Both facilities are operated by MWD. EMWD also produces approximately 45 to 50
MGD of treated recycled water from its four regional treatment plants.
Twenty-five percent of EMWD water is supplied by groundwater wells, most of which comes
from EMWD wells in the Hemet and San Jacinto areas. Other EMWD wells are located in the
Moreno Valley, the Perris Valley, and Murrieta areas. Eight EMWD storage tanks contribute to
the water supply for the City of Perris:
• Oleander Tanks I and II in northeastern Perris with capacities of 4 million gallons each;
• Citrus Tanks I and II at the east end of Citrus Avenue with capacities of 4 million and
7.2 million gallons respectively;
• Cajalco Tank on Cajalco Road west of Decker Road with capacity of 1.25 million
gallons;
• Decker Tank west of Decker Road and Redwood Drive with a capacity of 8.4 million
gallons;
• Ellis Tank at Ellis Avenue and Post Road with a capacity of 0.25 million gallons; and
• Motte Tank on Metz Road east of Graham Street with a capacity of 0.5 million gallons.
Five EMWD booster stations pump water throughout Perris:
1. Harvill Booster at Harvill Avenue and “A” Street;
2. Cajalco Road Booster at Morgan Street and the I-215 Freeway;
3. Good Hope II Booster at Ellis Avenue and Thelma Street;
4. Nuevo & Webster Booster at Nuevo Road and Webster Avenue; and
5. Murrieta Road Booster @ Murrieta Road and Ethanac Road.
EMWD also constructed the Menifee Desalter to recover high total dissolved solids (TDS)
groundwater for potable use. In addition to being a source of water, the desalter plays a part in
managing the groundwater subbasins.
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Wastewater (Water Reclamation)
The Eastern Municipal Water District (EMWD) owns and maintains the sanitary sewer system
serving most of the City of Perris and its Sphere of Influence. The City of Perris owns and
maintains sanitary sewers in and around Downtown Perris in an area generally extending
north to Nuevo Road, west to Arapahoe, south to Mountain Avenue, and east to Redlands
Boulevard. (A November 2017 ballot measure – Measure G – would have given the City
authorization to seek buyers for the City sewer system that serves the downtown area. The
measure failed to receive the necessary two-thirds vote for passage.)
The City of Perris Sewer Department collection system discharges into EMWD trunk lines.
EMWD trunk line sewers convey sewage from both EMWD and Perris Sewer District systems
to the 300-acre Perris Valley Regional Water Reclamation Facility (PVRWRF) south of Case
Road and west of the I-215 Freeway. Sewage is processed at the PVRWRF into biosolids, that
may be used for soil enrichment, and converted into recycled water. In 2001, more than
25,000 acre-feet of recycled water produced at the facility was consumed by CALPINE Energy
Company, the San Jacinto Wildlife Area, agricultural irrigators, and “municipal irrigators” for
use in irrigation of golf courses, school athletic fields, and municipal parks.
PVRWRF produces tertiary-treated water and has an average daily flow of 13.8 million gallons
per day (MGD) with a recently expanded capacity of 22 MGD. The Santa Ana Regional Water
Quality Control Board issued a National Pollutant Discharge Elimination System permit to the
Riverside County Flood Control and Water Conservation District as principal permittee and the
City of Perris as a co-permittee. The NPDES permit implements federal and state law
governing point-source discharges (municipal or industrial discharge from a specific location or
pipe) and non-point-source discharges (diffuse runoff) to surface waters of the United States.
The NPDES permit also regulates the amount and type of pollutants that the system can
discharge into receiving waters (NPDES No. CAS618033, Order No. R8-2010-0033).
Emergency Preparedness (Supply Interruption Capability)
EMWD is dependent on MWD for the majority of its water supply. According to EMWD’s Urban
Water Management Plan (2015), MWD has prepared for emergencies using a combination of
storage, facility design and redundant power sources. Emergency storage requirements are
based on the potential for a major earthquake that renders major water transportation facilities
out of service for six months. Assuming 100 percent of its supplies are unavailable for six
months, MWD has enough water storage to sustain 75 percent of normal year firm deliveries.
In the event of a major power outage, water supply can be delivered by gravitational feed from
recreational reservoirs, including Diamond Valley Lake Reservoir. For treatment plants, MWD
has backup power generators in place in case of electrical outages. As a result of a water
shortage or emergency situation, there may be a reduction of revenue from water sales. To
protect EMWD from financial hardship in such a situation, a financial reserve account (Rate
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Stabilization Reserve) has been established to meet the fixed costs associated with water
delivery that may not be met in the case of reduced water sales.
EMWD has developed an SSMP for sewer operations which includes appropriate personnel
listings, resource inventories, locations for emergency operations centers, response
procedures, and the steps necessary to resume normal operations.
Financial Ability to Provide Services
As of June 30, 2017, the City was able to report a positive increase in its Net Position, the
value of assets and funds on hand for operations and capital investment, to $289,100,012, an
increase of $19,108,543 over the prior year and an increase in balance in its unrestricted net
position to $5,349,000. On June 30, 2017, the Water Fund Net Position balance was
$3,257,895. This is an increase of $3,667,688, during a period of drought including demand
management restrictions and slightly less sales overall. In December 2016, the City Council
adopted a water rate increase to provide additional funds for operations and capital
replacements and a rate stabilization emergency fund.
On June 30, 2017, the Sewer Fund Net Position balance was $8,144,309. This is an increase
of $6,402,722 over the prior year. The Sewer Fund Unrestricted Net Position was $1,821,200.
Table 26 – City of Perris Financial Information
FY 2014-15 FY 2015-16 FY 2016-17
Total City Revenues $ 70,290,509 $ 74,392,606 $ 73,707,971
Total City Expenditures -65,273,886 -132,826,993 -62,255,291
Revenues minus Expenditures $ -5,016,623 $ 23,793,005 $ 11,452,680
Net Position - Unrestricted $ 5,780,722 $ 8,787,620 $ 5,349,000
Water Fund
Water Fund Revenues $ 2,825,486 $ 2,809,251 $ 2,895,591
Water Fund Expenditures -2,933,439 -2,645,931 -2,855,419
Revenues minus Expenditures $ 107,953 $ 163,320 $ 40,172
Ending Net Position $ -38,383 $ -409,793 $ 3,257,895
Sewer Fund
Sewer Fund Revenues $ 1,820,139 $ 2,029,484 $ 4,198,230 a
Sewer Fund Expenditures -2,071,876 -2,100,601 -2,134,491
Revenues minus Expenditures $ 251,737 $ -71,117 $ 2,063,739
Ending Net Position $ -198,377 $ 1,741,587 $ 8,144,309
Public Utilities (Avalon Area Water System)
Revenues $ 969,497 $ 874,380 $ 920,482
Expenditures -2,049,340 -1,157,980 -1,181,633
Revenues minus Expenditures $ -1,079,340 $ -277,590 $ -261,151
Ending Net Position $ -6,200,045 b $ -6,156,555 $ -1,850,583
Notes: a Grant funds received
b Settlement paid out for purchase of water system
Sources: CAFRs 2014-15, 2015-16, 2016-17
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There are seven primary areas, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water and sewer service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Reserve Policy and Ratio of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
1. 3-Year Revenue/Expenditure Budget Trends
The water fund overall has been experiencing a slight surplus as well as occasional deficit
spending over the last several years. However, this has been attributed primarily to planned
capital expenditures and cash flows due to lower water sales. A rate increase plan was
adopted by the City Council in July 2013 and has been implemented in 2014 to accommodate
these changes in water uses, planned expenditures for infrastructure, and to establish an
emergency fund for rate stabilization into the future.
2. Ratios of Revenue Sources
The City receives 98 to 99 percent of its water fund and sewer fund revenues from charges
and fees for services, no revenue from property taxes, and about 1 to 2 percent from
miscellaneous other sources.
3. Reserve Policy and Ratio of Reserves or Fund Balance to Annual Expenditures
The City has a General Fund Reserve Policy. On August 30, 2011 the City Council adopted a
fund balance policy in compliance with GASB Statement No. 54, which committed to a fund
balance in an amount equal to 35 percent of general fund expenditures. These reserves are
committed for use specifically in the case of unforeseen circumstances in addition to $3.4
million for disaster preparedness, $1.3 million for vehicle and equipment replacement, $1.3
million for major capital improvements and repairs, and $200,000 as a budgetary contingency.
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted cash reserve or fund balance the service fund
maintains in relation to the annual fund expenditures. The City’s Water Fund balance ratio is
approximately 86 percent of annual expenditures. This fund ratio represents a positive ratio
position and the reserve has been increased over time. The City's Sewer Fund balance ratio is
approximately 276 percent of annual expenditures including debt service for facilities and
wastewater treatment capacity, a very positive ratio position.
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The ratios of unrestricted reserves for both the water fund and sewer fund reflect an
appropriate balance for typical enterprise fund services; this minimizes the impact that
negative economic factors might have on more elastic revenues due to varying water sales
based upon the economic picture and drought over the past ten years.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the City’s
ability to meet debt obligations in relation to service provision expenditures. Ideally, a ratio of
ten percent or less would reflect a very stable ratio. The City’s Water Fund has low debt,
including refinancing of prior debt to reduce long-term expenses and to pay for needed capital
projects over time. The Water Enterprise Fund has operated at an ongoing deficit for several
years. The City Council studied options and decided to request proposals for sale of the City’s
two water systems. As referenced previously, in November 2017, the electorate voted to
approve Measure H to authorize sale of the water systems for $11.5 million. According to the
City, the sale will be completed near the end of 2018.
The Water Fund's current annual debt service ratio to total expenditures is approximately eight
percent, a reasonable ratio. The City Council has provided funds to meet deficits including
debt service in several of the past five plus years. The Sewer Fund debt service ratio to total
expenditures is approximately 20 percent, somewhat high but necessary due to the Revenue
Bond funded purchase and lease of additional sewer treatment capacity for the future.
5. Rate Structures
The City serves the downtown central Perris area and the North Area of Villages of Avalon.
The City Council adopted a water rate study in 2013 that set rates at a base for monthly
charges (⅝- to 1-inch meter) at $12.92 per month and a water user charge $ 2.695 per HCF
for 0-18 and $5.155 per HCF over 18 HCF (100 cubic feet of usage). In addition, there are
"pass-through costs" from EMWD who supply some water to the City. For the City served
areas, there is a minimum monthly billing of $87.78 which includes sewer and refuse services.
Sewer rates were increased in 2014 after a Cost of Service Study to include City costs and
EMWD pass-through treatment costs totaling $45.05 per residential EDU (Equivalent dwelling
unit) per month fixed charge, adjusted from time to time when pass-through costs are
increased. Non-residential users pay based upon type service use and volume of water used
per 100 cubic feet of usage. These rates address needed funds due to increases in operating
costs, capital replacement projects, lower water sales and the need for emergency rate
stabilization funds. The City has no standby charges in place.
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6. Capital Improvement Program/Plan
The City Council adopts a Capital Improvements Program and budget each year and then
makes mid-year adjustments as necessary. The 2017-18 CIP carries forward $87,502,223 of
City-wide project funding and only one Sewer/Water Project (a five-mile pipeline to connect the
North Perris Water Area to the South downtown area) originally for budgeted $6,000,000 that
was completed this year for $5,300,000. Other repairs and replacement projects are
completed within the Operating Budget unless an emergency occurs.
7. Pension Liability and Other Post- Employment Benefits Liabilities
The City provides both pension benefits and other post-employment benefits to employees
and spouses as long as they meet plan requirements. GASB reporting requirements changed
in 2016 to require recording these liabilities to the financial reports and balance sheet. The City
reports in the 2017 CAFR an approximate liability for pensions of $11,038,624 that is being
paid down over time as provided by law. OPEB liabilities for healthcare benefits are also being
paid down through a self-funded JPA program as funding permits. The unfunded liability is
$8,502,961. A detailed description of the programs and expenses is provided in the annual
CAFR.
Status and Opportunities for Shared Facilities/Services
Shared services within the City of Perris include:
• Eastern Municipal Water District provides water and sewer service to the majority of
City residents.
• The City contracts with Riverside County for police and fire services.
• The City contracts with Riverside County for all animal control services.
Government Structure and Accountability
The City of Perris is governed by a five-member City Council elected at large, each four years.
The City Council meets on the second and last Tuesdays of each month unless cancelled, at
6:30 PM at the City Council Chambers, 101 North "D" Street, Perris, CA.
Reasonable arrangements are made for those citizens with disabilities when the District is
notified in advance of a meeting. Meeting agendas are posted to the District’s website 72
hours in advance of a meeting. Residents are also given the option of signing up for
e-Notification if they want to receive an email notification when upcoming meeting agendas are
posted to the meeting calendar.
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Table 27 – City of Perris Council Members
City of Perris Council Members Term Expires
Michael M. Vargas, Mayor Mayor 2020
Marisela Magana, Mayor Pro Tem Council 2022
Malcolm Corona Council 2020
David Starr Rabb Council 2022
Rita Rogers Council 2020
The City’s website provides easy access to city and committee agendas, minutes, public
notices, budgets, audits and other key documents. Phone numbers and email addresses for
City staff members are listed on the website.
Based upon past and current service provision practices, it is reasonable to conclude that
appropriate levels of public services can continue to be provided by the City of Perris to current
and future populations under the existing government structure. No alternative government
structure options were identified for further consideration at this time.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
What would eventually become the City of Riverside was originally founded in 1870 by John
North and a group of Easterners who wanted to establish a colony dedicated to furthering
education and culture. Investors from England and Canada transplanted traditions and
activities adopted by prosperous citizens – the first golf course and polo field in Southern
California were built in Riverside. However, it was the introduction of the first navel orange
trees, planted in 1873, that led to the establishment of Riverside as the early home of the
California’s citrus industry.
By 1882, almost 500,000 citrus trees were planted in Riverside. The rapidly expanding citrus
industry also stimulated the capital market for real estate, dramatically increasing the value of
land in and around the Riverside area. Incorporated in 1883, the City of Riverside grew in size
from approximately 39 square miles to over 81 square miles today. The City provides its
residents with a full array of municipal services including, but not limited to, general
government, public safety (police, fire, disaster preparedness and building inspection),
construction and maintenance of highways and streets, economic development, parks and
recreation, electricity, water, a municipal airport, refuse, sewer, and senior citizen/handicap
transportation.
Growth and Population Projections
Riverside ranks as the 12th most populous city in California. The California State Department
of Finance estimates the City’s population is currently 325,860 (as of January 1, 2018). In
Riverside’s recent history, population growth according to the City’s General Plan has been a
steady constant, adding approximately 40,000 new residents each decade since the 1960s.
The City of Riverside is anticipated to continue increasing in population. According to the
General Plan 2025 EIR, the City of Riverside has a projected population of 383,077 at the
ultimate buildout of the City. Of that total, the City’s “General Plan 2025” projects a population
of 346,867 within current incorporated boundaries of Riverside and 36,209 residents within the
City’s sphere of influence. In past decades, migration patterns, in part due to more affordable
housing, fueled population growth in Riverside. In contrast, Riverside’s future growth is
projected to come from residents living in the City today.
It should be noted that both the City’s sewer and water service areas do not match City
boundaries. This is more fully described in the “Present and Planned Capacity” section of this
report.
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Exhibit 6 – City of Riverside
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City of Riverside - Agency Profile
General Information
Agency Type Charter City
(Utilities Authority formed 1913 - operates water, electric facilities)
Date Formed Incorporated October 11, 1883; became a charter city March 5, 1907
Services Full service: fire, police, water, sewer, public utilities, park/recreation, streets, solid waste,
storm drains, municipal airport
Service Area
Location Located within Western Riverside County, approximately 68 miles west of Los Angeles,
and 15 miles southwest of the City of San Bernardino
Square Miles/Acres Water Service Area: 74.2 sq. miles Sewer Service Area: 81.5 sq. miles
Total Water/Sewer Connections Water Connections: 65,428 Sewer Connections: 76,595 (lateral connections)
Population Served Water Service Area: 326,733 Sewer Service Area: 324,722
Water Infrastructure
Facilities 62 wells (56 potable, 6 non-potable); 16 reservoirs; 1,003 miles pipe
Storage Capacity 108.5 MG; 6 Water Treatment Plants
Primary Source of Supply 100% Local groundwater (San Bernardino Basin 68%, Riverside Basin 32%) and recycled
water
Water Rates (single-family home) ⅝” and ¾” connection: $15.80/month plus $1.16 to $3.26 per HCF depending on usage
and season
Sewer Infrastructure
Facilities 782 miles of gravity sewer; 11 miles of force main; 19 pump stations; City of Riverside
Regional Water Quality Control Plant
Current and Projected Treatment Capacity 46 MGD (plant expansion completed in 2016)
Primary Disposal Method Reused for irrigation or discharged to the Santa Ana River; regional water quality control
plant treats to tertiary level
Sewer Rates (single-family home) $42.96/monthly, fixed rate
Budget Information - FY 2016-2017 (Water & Sewer Funds)
Revenues Expenditures Net Surplus/(Deficit)
Water Fund $68,068,000 $67,862,000 $206,000
Sewer Fund $59,735,000 $38,305,000 $21,430,000
Combined City Funds $830,629,000 $760,643,000 $69,986,000*
Budgeted Capital Expenditures Budget FY 2018-2019 Long-Term Planned Expenditures
$25,650,651 (FY 2018-19 - 2022-23)
$136,113,913 (2018-21 CIP)
Water Fund (Unrestricted Net Position) $26,252,000
Sewer Fund Balance/Reserves $18,614,000
Combined City Net Position $1,886,646
Governance
Governing Body Mayor (elected at large) and 7 member City Council (elected by ward); Utilities Board
appointed by City Council with no compensation
Agency Contact Edward Filadelfia, Technical and Compliance Manager, Regional Water Quality Control
Plant, efiladelfia@riversideca.gov, 951-351-6080
Todd Corbin, Public Utilities General Manager, tcorbin@riversideca.gov, 951-826-8950
*$69,561,000 from other sources of funds
Sources: Riverside UWMP (2015); City of Riverside website; City municipal questionnaire; Adopted FY 17-18 budget; Sewer System Management
Plan (2016); California Integrated Water Quality System (CIWQS) City of Riverside questionnaire; Utilities Annual Report; 2017 CAFR
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Disadvantaged Unincorporated Communities
Riverside LAFCO has identified two DUCs within the City of Riverside’s sphere of influence:
Highgrove - West and Highgrove - East. The community of Highgrove is located north of the
City of Riverside and south of the San Bernardino County line in northwest Riverside County.
The community encompasses 2,250 acres of uniquely mixed land uses east of Interstate 215,
ranging from a well-established urban core with commercial, industrial, civic and residential
uses in its western portion, to larger-lot and equestrian-oriented residential uses and citrus
groves to the east.
Center Street serves as the community’s primary thoroughfare, with the Burlington Northern -
Santa Fe (BNSF) and Union Pacific (UP) railroad lines also as prominent transportation
facilities. West of Interstate 215, Highgrove encompasses another 204 acres, consisting
mostly of medium density and very low density, single-family detached residential uses, with
some scattered commercial and industrial uses and mobile home parks along La Cadena
Drive.
In October 2011, the County of Riverside approved the Highgrove Area Plan - an extension of
the County of Riverside General Plan which addresses the physical, environmental and
economic characteristics that the County aspires to achieve for the Highgrove community by
2020. Highgrove does not currently have sewer service. For many years, the area's rural uses
have been served by septic tanks. The City of Riverside maintains a policy that lots smaller
than one acre be connected. As the area transitions to the land uses incorporated into the
Highgrove Area Plan, development applicants will only be able to offer residential lots smaller
than one acre if sanitary sewer service is extended. Also, according to the County, much of the
existing community would rather connect to a public sewer system than replace or rehabilitate
aging septic systems. Such replacement or rehabilitation will be necessary soon as septic
systems installed 30 to 40 years ago reach the end of their design life.
One major variable influencing how quickly Highgrove is connected to a sewer system is how
the costs will be allocated. An agreement has been reached between the City of Riverside and
Riverside County to begin providing sewer service to the area, and a sewer line has been
extended to the Spring Mountain Ranch area.
The City of Riverside currently provides water to the western Highgrove urban core and to
residential customers as far east as Walker Avenue. The remaining current residential uses
south of Spring Street and east of Michigan Avenue have potable water service through the
Riverside Highland Water Company, a mutual water company headquartered in Colton.
Riverside Highland has historically served the area for irrigation water to the groves, and has
expanded its domestic service system to cover most of the tract home development that has
occurred in Highgrove since the 1970s. Riverside Highland's Board of Directors has approved
sewer service extension as an addition to the range of services provided by the company.
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Present and Planned Capacity of Public Facilities
Water
In 1913, Riverside voters approved a $1,115,000 bond issue to purchase three water
companies and establish its own municipal water department, the Riverside Public Utilities
Department (RPU). The purchase included the Riverside Water Company, Artesia Water
Company, and the Henry P. Kyes water system. As early as 1956, the City of Riverside started
buying stock in the Gage Canal Company (GCC). In 1965, the City of Riverside acquired the
GCC and all of its production, transportation, and distribution assets by condemnation. Since
1959, the City of Riverside's water supply has come from groundwater sources and remains
essentially the same to this day. In recent years, urbanization has increasingly encroached on
agricultural land resulting in a shift in water use from agricultural irrigation to domestic,
municipal, and industrial applications.
Today, RPU remains a municipally-owned utility that provides potable, non-potable, and
recycled water to retail customers primarily within the City of Riverside. The RPU service area
within Riverside's City boundaries is approximately 81 square miles, of which approximately 10
square miles are served by water retailers other than RPU. The other potable water retailers
within the City include Western Municipal Water District (nine square miles), Eastern Municipal
Water District (one square mile), and the Riverside Highland Water Company (0.25 square
miles).
The RPU service area is approximately 80 percent built out and contains about 15 percent
vacant land available for development. RPU has identified three categories of growth for
ultimate build out: (1) development within the remaining vacant land, (2) increased density
within areas already developed as defined in the City's General Plan 2025, and (3) water
demand associated with growth and expansion at the University of California Riverside (UCR)
and California Baptist University. The estimated water service area population is shown in
Table 28 below.
Table 28 – City of Riverside (RPU) Water Service Area Population Projections, 2015-2040
2015 2020 2025 2030 2035 2040
294,500 310,700 322,500 334,700 347,300 360,500
Source: City of Riverside UWMP (2015)
According to the City’s Urban Water Management Plan (2015), RPU’s water supply consists
primarily of groundwater from the Bunker Hill Basin, Riverside North, and Riverside South sub-
basins. Additional sources of water available to RPU include groundwater from the Rialto-
Colton Basin, recycled water from the RWQCP, and imported water from WMWD through a
connection at the Metropolitan Water District of Southern California’s Henry J. Mills Treatment
Plant. RPU plans to augment its existing water supplies through conjunctive use projects in the
Bunker Hills and Riverside North Basins and recycled water infrastructure projects.
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In general, groundwater and recycled water supplies are considered less vulnerable to
seasonal and climatic changes than surface water (i.e. local and imported) supplies. RPU has
assumed that 100 percent of its groundwater and recycled water supplies would remain
available during a single dry year and multiple dry years. Comparisons of expected supply and
demand during a normal year and single dry year are shown in the tables below.
During normal water years, no reductions in supply are expected for any of the City’s supplies.
The source water supply is larger than demand in all years, and the City is not expected to
have any supply shortfalls during normal water years or any issues providing a reliable and
consistent supply of water. Under a single-dry year scenario, supplies are estimated to be
sufficient to address water demands in years 2020 through 2035. In year 2040, supply is
projected to fall short of fully meeting expected water demands.
Table 29 – City of Riverside Normal Year Water Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 116,903 121,903 124,703 124,703 124,703
Demand Totals 95,221 96,534 99,015 101,589 104,257
Difference 21,682 25,369 25,668 23,114 20,446
Source: Riverside UWMP (2015)
Table 30 – City of Riverside Single-Dry Year Water Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 96,288 101,288 104,288 104,088 104,028
Demand Totals 95,221 96,534 99,015 101,589 104,257
Difference 1,067 4,754 5,073 2,499 -169
Source: Riverside UWMP (2015)
The RPU has an aggressive five-year Capital Improvement Program/Plan (FY 2018/19 - FY
2022/23) that allocates a total of $129,113,413 in water system upgrades. Scheduled
improvements include, but are not limited to, distribution system upgrades, main replacements,
pump station replacements, SCADA upgrades, well replacements, and advance metering and
transmission main upgrades/replacements.
Wastewater (Water Reclamation)
The Riverside Public Works Department operates a comprehensive wastewater collection,
treatment and disposal system that serves most of the City, as well as portions of the sphere
area and, through contract, the unincorporated communities served by the Jurupa, Rubidoux
and Edgemont Community Services Districts as well as the unincorporated Highgrove
development area and a limited area of the Home Gardens Sanitary District.. The City
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estimates the current sewer service population at more than 300,000. A portion of the City is
served by Eastern Municipal Water District.
According to the City’s Sewer System Management Plan (2015), the system consists of over
820 miles of sewer lines ranging in size from four inches to over 50 inches in diameter that
convey wastewater from residences and businesses to the City’s Regional Water Quality
Control Plant (RWQCP). The sewer lines are aging with some more than 120 years old. Ten
percent of the sewer lines were installed before 1900, 50 percent between 1940 and 1959, 20
percent between 1960 and 1979, and 20 percent after 2000.4 There are also 19 pump stations
located throughout the City that range in size from 100 gallons per minute (GPM) up to 2,000
GPM providing service to those areas of geographic need.
Based on the 2008 Wastewater Master Plan, the Public Works Department completed a major
RWQCP Rehabilitation and Expansion project in 2016 that increased the treatment capacity
from 40 MGD to 46 MGD. According to the City, the plant expansion incorporated various new
technologies, including Membrane Bioreactor (MBR) technology, which provides provide
reliable, high quality reusable water while minimizing modifications needed to existing
infrastructure. The RWQCP provides preliminary, primary, secondary, and tertiary treatment
(MGD) before it is reused for irrigation or discharged to the Santa Ana River.
The Public Works Department is currently in the process of completing a Wastewater Master
Plan update to be completed by the summer of 2019. The Master Plan update will identify the
required sewer collection system and treatment CIP and complete the financial cost of service
and sewer rate alternatives for consideration. The Wastewater Master Plan update has
estimated flows based on water usage and growth projections for the City’s service area. In
2020, projected flows are 28 MGD in a dry year and 30 MGD in a normal year; in 2025,
projected flows are 30 MGD in a dry year and 32 MGD in a normal year; in 2030, projected
flows are 32 MGD in a dry year and 36 MGD in a normal year; and, in 2040, projected flows
are 34 MGD in a dry year and 39 MGD in a normal year.
The Western Municipal Water District (WMWD) is responsible for collection and treatment of
wastewater flows in a small portion of the City. Historically, the City’s Public Works Department
and WMWD have cooperatively determined which agency can best serve an area with water
and wastewater services. This arrangement has led to a mixing and matching of service
providers.
The City’s adopted five-year Capital Improvement Program/Plan (FY 2018/19 - FY 2022/23)
allocates a total of $5,500,000 in sewer system upgrades. Scheduled improvements include,
but are not limited to, RWQCP - Phase II, Tertiary System Upgrade - Phase I, Plant 2
Activated Sludge Rehab - Phase I, and collection system upgrades.
4 California Integrated Water Quality System (CIWQS) Report, California Water Boards
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Emergency Preparedness (Supply Interruption Capability)
In addition to water supply shortages caused by drought conditions, there are other major
hazards that can degrade the quality and/or impact the quantity of water available to the
Riverside Public Utilities (RPU) water or sewer systems. These include: regional power
outages, earthquakes, liquefaction (i.e. high groundwater levels that could compromise water
delivery infrastructure), floods, chemical spills, groundwater contamination, and terrorist acts.
Some of these hazards could also adversely impact the distribution systems, such as the
major transmission mains or reservoirs. Interruptions to water supplies from any of the above
mentioned hazards may be limited to days or even months, except for groundwater
contamination, which could last several years.
RPU has implemented several measures to improve the reliability of its water system. Actions
taken to prepare for a catastrophe include:
• Establishing criteria for a proclamation of water shortage;
• Developing alternate sources of water supplies;
• Establishing contacts and mutual aid agreements with other agencies;
• Establishing an Emergency Response Team/Coordinator;
• Preparing an Emergency Response Plan (ERP);
• Developing public awareness programs; and
• Conducting mock emergency drills at the Emergency Operations Center annually.
In 2008, the City updated its Emergency Response Plan which incorporates the RPU Water
System Emergency Response Plan. Extended multi-week supply water shortages are unlikely
due to natural disasters or accidents which damage all water sources. The City also maintains
a preventative maintenance program for its water distribution system. According to the City,
auxiliary generators are available and improvements have been made to water facilities to
minimize loss of these facilities during an earthquake or any disaster causing an electric power
outage. RPU maintains several emergency generators for use as needed.
The City Public Works Department maintains an updated Emergency Response Guidebook for
each respective department division, including the Wastewater Division. The Emergency
Guidebook information is coordinated with the City’s Emergency Response Plan managed
through the City’s Emergency Operations Center.
The City has also developed a Sewer System Master Plan for sewer operations which
includes appropriate backup equipment and generators, personnel listings, resource
inventories, locations for emergency operations centers, response procedures, and the steps
necessary to resume normal operations.
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Financial Ability to Provide Services
As of June 30, 2017, the City was able to report a positive increase in its Net Position, the
value of assets and funds on hand for operations and capital investment, to 1,886,646,000, an
increase of $69,986,000 over the prior year. On June 30, 2017, the Water Fund Net Position
balance was $305,418,000. This is an increase of $206,000.
On June 30, 2017, the Sewer Fund Net Position balance was $205,531,000. This is an
increase of $25,436,000 over the prior year. In 2014, the City Council adopted a Five-year
Sewer Rate increase to provide additional funds for operations and capital replacements. In
addition, in 2016 the City Council adopted a Sewer Enterprise Fund Reserve Policy to ensure
proper financial management and fiscal stability.
Table 31 – City of Riverside Financial Information
FY 2014-15 FY 2015-16 FY 2016-17
Total City Revenues $ 800,286,000 $ 806,815,000 $ 830,629,000
Total City Expenditures -719,956,000 -727,129,000 -760,643,000
Revenues minus Exp enditures $ 80,330,000 $ 79,686,000 $ 69,986,000
Net Position $ 1,736,974,000 $ 1,816,660,000 $ 1,886,646,000
Water Fund
Water Fu nd Revenues $ 75,060,000 $ 66,725,000 $ 68,068,000
Water Fund Expenditures -69,890,000 -64,199,000 -67,862,000
Revenues minus Expen ditures $ 5,170,000 $ 2,526,000 $ 206,000
Ending Net Position $ 302,686,000 $ 305,212,000 $ 305,418,000
Sewer Fund
Sewer Fund Revenu es $ 52,934,000 $ 54,550,000 $ 64,669,000
Sewer Fund Expenditures -35,592,000 -39,980,000 -39,233,000
Revenues minus Expen ditures $ 17,342,000 $ 14,570,000 $ 25,436,000
Ending Net Position $ 165,525,000 $ 180,095,000 $ 205,531,000
Sources: City CAFRs 2015, 2016 & 20 17
The Water Fund had an unrestricted net position of $26,252,000 as of June 30, 2017. The
Sewer Fund unrestricted Fund Balance Reserve has not been identified.
There are seven primary areas, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water and sewer service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratio of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
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1. 3 Year Revenue/Expenditure Budget Trends
The water fund overall has been experiencing a nominal surplus over the last several years.
However, this has been attributed primarily to planned capital expenditures and slightly higher
water sales after the state lifted drought restrictions. The sewer fund has increased each year
due to planning for facility replacements and increased utilities costs. A five-year sewer rate
increase program was adopted by the City Council in 2014 to accommodate these needs into
the future.
2. Ratios of Revenue Sources
The City receives 97 to 98 percent of its water fund and sewer fund revenues from charges
and fees for services, no revenue from property taxes, and about 2 to 3 percent from
miscellaneous other sources.
3. Ratio of Reserves or Fun d Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted cash reserve or fund balance the service fund
maintains in relation to the annual fund expenditures. The City’s Water Unrestricted balance
ratio is approximately 70 percent of annual expenditures. This fund ratio represents a positive
ratio position and the reserve has been increased over time. The City's Sewer Fund balance
ratio is approximately 21 percent of annual expenditures including debt service for facilities
and wastewater treatment capacity, a somewhat low ratio position. The sewer fund does
maintain an adequate reserve for debt service.
The ratios of unrestricted reserves for both the water fund and sewer fund reflect an
appropriate balance for typical enterprise fund services; this minimizes the impact that
negative economic factors might have on more elastic revenues due to varying water sales
based upon the economic picture and drought over the past ten years.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the City’s
ability to meet debt obligations in relation to service provision expenditures. Ideally, a ratio of
ten percent or less would reflect a very stable ratio. The City’s Water Fund has reasonable
debt, including refinancing of prior debt to reduce long-term expenses and to pay for needed
capital projects over time.
The Water Fund has outstanding debt liabilities of $188 million in revenues bonds and $14
million in notes payable as of June 30, 2017. The Water Fund's annual debt service ratio to
total expenditures is approximately 20 percent, a slightly higher than average ratio. The Sewer
Fund has outstanding debt liabilities of $ 429.1 million in revenue bonds and $2.5 million in
notes payable with a service ratio to total expenditures of approximately 37 percent, somewhat
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high but necessary due to the Revenue Bond funded purchase and lease of additional sewer
treatment capacity for the future.
5. Rate Structures
The City Council adopted a Five-year Sewer Rate Study on May 13, 2014 to become effective
on July 1, 2014. Sewer rates were increased to address needed funds due to increases in
operating costs, capital replacement projects and debt financing of new facilities. A new Five-
year Water Rate Schedule was approved on May 22, 2018 to be effective July 1, 2018.
Table 32 – Adopted Water Rates* – City of Riverside, 2019-2023
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
Fixed Monthly Charge ⅝” & ¾” meter $15.80 $18.07 $20.53 $23.08 $26.00
Volumetric Charge Rate (per HCF) $1.16 – $3.26 $1.19 – $3.37 $1.22 – $3.46 $1.26 – $3.55 $1.30 – $3.66
Rates apply to single family residential, multi-family, commercial, industrial, landscape irrigation, recycled water and municipal customers. Actual
volumetric rates vary by rate schedule.
Table 33 – Adopted Sewer Rates* – City of Riverside, 2015-2019
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
Fixed Monthly Charge -Residential $30.98 $33.62 $36.48 $39.59 $39.59
Office - $/HCF $1.84 $2.00 $2.17 $2.36 $2.36
Restaurants - $/HCF $5.97 $6.48 $7.04 $7.64 $7.64
*Monthly fixed charge applies to all customer classes.
6. Capital Improvement Program/Plan
The City has developed and implemented an aggressive and comprehensive CIP for water
and sewer facility infrastructure improvements. The City’s current 5-Year CIP adopted with the
2018-19 FY Budget contains $313.6 million in projects for water, sewer and electric utilities.
The City’s water and sewer infrastructure systems are aging. During FY 2014, the City Council
raised sewer rates; in May 2018, the Council raised water rates to address the growing gap
between revenues and expenditures. According to the City, the decision to increase rates was
necessary to meet the City’s fiduciary obligation to ensure that rates are adequate to cover the
cost of operations, maintenance and capital replacement.
The City’s water and sewer funds do not receive tax revenues and must recover the cost of
providing services through user rates, capacity charges, grants and long-term debt. With the
rate increases, both the water and sewer funds are projected to generate sufficient revenues
to cover operating costs, build working capital reserve, fund a rate stabilization reserve and
provide for capital investment in water and sewer infrastructure. When looking at the overall
City’s maintenance and replacement needs for aging governmental infrastructure and other
capital facilities (not just water and sewer), the City estimates an annual funding gap of $1
billion for five years.
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Additionally, the City contracts to serve Rubidoux CSD and Edgemont CSD as well other
agencies for sewer treatment services. Those agencies pay the City for services and capacity
as it is needed.
7. Pension Liability and Other Post- Employment Benefits Liabilities
The City provides both pension benefits and other post-employment benefits to employees
and spouses as long as they meet plan requirements. GASB reporting requirements changed
in 2015 to require the recording of the net pension liability on the financial statements. In 2017,
the City reported an approximate net pension liability of $628,000,000 and $37,000,000 in net
other post-employment benefits that are being paid down over time as provided by law. A
detailed description of the programs and expenses is provided in the annual CAFR.
Status and Opportunities for Shared Facilities/Services
In order to increase groundwater production beyond historical levels and improve water supply
reliability of the local groundwater basins, RPU has collaborated with other local water retailers
through the Santa Ana Watershed Planning Authority (SAWPA), and the Basin Technical
Advisory Committee (BTAC) to address various groundwater management issues. Typical
collaborative efforts include developing groundwater models, sharing groundwater quantity/
quality data, partnering on regional projects, and conducting source water assessments. The
City’s RPU also maintains interconnections with neighboring agencies to provide water during
short-term outages or emergencies.
RPU also participates in the Emergency Response Network of the Inland Empire (ERNIE).
ERNIE is a water/wastewater mutual aid network within San Bernardino and Riverside
counties. ERNIE meets monthly and provides regular training for utilities in emergency
response and long-term emergency planning.
In addition to treating wastewater from the City’s collection system, the City also provides
wastewater treatment services for the Community Services Districts of Edgemont, Jurupa, and
Rubidoux.
Government Structure and Accountability
The City currently operates under a Council-Manager form of government. The City operates
with a seven-member council elected to four-year overlapping terms. Each councilmember is
elected by ward. The mayor is elected at large for a four-year term and is the presiding officer
of the Council but does not have a vote except in the case of a tie.
The City Council is responsible for passing ordinances, adopting the budget, appointing
committees, and hiring the City Manager, City Attorney, and City Clerk. The City Manager is
responsible for carrying out the policies and ordinances of the Council, for overseeing the day-
to-day operations of the City, and for appointing the heads of various departments. The City
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Council’s regularly scheduled meetings are held on Tuesdays, usually at 2:00 p.m. or 3:00
p.m., at City Hall located at 3900 Main Street, Riverside.
Reasonable arrangements are made for those citizens with disabilities when the City Clerk’s
Office is notified at least 72 hours in advance of a meeting. Adequate notice is given to
residents for City Council meetings and meetings of the various City Commissions. All meeting
agendas are posted in compliance with the Brown Act.
Table 34 – City of Riverside City Council Members
Council Member Ward Term Expires
Mike Gardner Ward 1 2019
Andy Melendez Ward 2 2021
Mike Soubirous Ward 3 2019
Chuck Conder Ward 4 2019
Chris MacArthur Ward 5 2019
Jim Perry Ward 6 2021
Steven Adams Ward 7 2021
The City’s website is user-friendly and has easy access to City Council agendas, minutes,
public notices, budgets, audits and other key City documents. City Council meetings are
videotaped and accessible for on-line viewing. Phone numbers and email addresses for City
departments and key staff members are easily accessible. The City also has Facebook and
Twitter accounts and has introduced apps to assist residents in submitting City service
requests, and explore the City and its historical landmarks.
Based upon past and current service provision practices, it is reasonable to conclude that
appropriate levels of public services can continue to be provided by the City of Riverside to
current and future populations under the existing government structure. No alternative
government structure options were identified for further consideration at this time.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
In 1842, Jose Antonio Estudillo received the Rancho San Jacinto Viejo Mexican land grant. In
the 1860s, the Estudillo family began selling off portions of their rancho and through
acquisitions, a small American community began to form. In 1868, local residents petitioned to
form a school district, and by 1870 a store and post office had been established. A plan for the
community was developed in 1883, and the City of San Jacinto was officially incorporated on
April 20, 1888, within San Diego County. San Jacinto is one of the oldest American cities in the
region. In May 1893, Riverside County was created by the division of northern San Diego
County and part of what now is San Bernardino County, changing the county government over
San Jacinto.
The City is located in the southwesterly part of Riverside County at the base of the San Jacinto
Mountains. It is generally bounded on the north by the City of Beaumont, the south by the City
of Hemet and the west by the City of Moreno Valley. The area surrounding the City is
predominantly rural and supports farming and agricultural activity.
The City provides a full array of municipal services to its residents. Police and fire services are
provided through contract with the Riverside County Sheriff’s Department and the Riverside
County Fire Department, respectively.
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Exhibit 7 – City of San Jacinto
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City of San Jacinto - Agency Profile
General Information
Agency Type General Law City
Date Formed April 9, 1888
Services Administration, water, sewer collection, code enforcement, library (Riverside County Library
system); parks and trails; fire (contract with Riverside County Fire); police (contract with
Riverside County Sheriff); road maintenance; storm water
Service Area
Location San Jacinto is located in the southwesterly part of Riverside County at the base of the San
Jacinto Mountains. It is generally bounded on the north by the City of Beaumont, the south
by the City of Hemet and the west by the City of Moreno Valley.
Square Miles/Acres 26.1 square miles
Total Water/Sewer Connections Water: Approx. 4,200 Sewer: Approx. 16,670
Population Served Water: 18,000 Sewer: 45,000 (collection only)
Water Infrastructure
Facilities 4 active wells; 3 storage tanks
Storage Capacity 3.5 MG
Primary Source of Supply Groundwater (100%); EMWD imported water available for emergency use only or to meet
peak demands.
Water Rates (single-family home) Not provided
Sewer Infrastructure
Facilities 125 miles of gravity sewer; 3 lift stations; 2,724 manholes
Current and Projected Treatment Treatment provided through EMWD’s Hemet/San Jacinto Regional Water Reclamation
Capacity Facility; 14 MGD capacity
Primary Disposal Method EMWD treats wastewater to tertiary-level recycled water which is used for non-potable
reuse - crop irrigation, golf courses, school fields, parks, landscape medians, etc.
Sewer Rates (single-family home) Not Provided
Budget Information - FY 2017-2018 (Water & Sewer Funds)
Revenues Expenditures Net Surplus/(Deficit)
Water Fund $4,115,068 $5,014,503 $-899,435
Sewer Fund 917,036 897,457 19,579
Combined Funds $5,032,104 $5,911,960 $-879,856
Capital Expenditures* FY 2017-2018 Long Term Planned Expenditures
$327,355 None listed in FY 2018-19 Budget for Water/Sewer
Water Fund Balance/Reserves $5,523,510
Sewer Fund Balance/Reserves $4,266,749
Agency Net Position $156,231,980
Governance
Governing Body 5-member city council elected at large; council meets on the first and third Tuesdays, 6:30
p.m., 625 A. Pico Street, San Jacinto, CA 92583
Agency Contact Travis Randel, trandel@sanjacintoca.gov
Sources: City of San Jacinto website; San Jacinto Urban Water Management Plan; CA Water Board CIWQS website; Eastern Municipal Water
District SSMP (2016)
*Does not include miscellaneous capital
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Growth and Population Projections
The California State Department of Finance estimates the City’s 2018 population to be 48,146.
According to the City, since 1990, the City’s population has increased by over 172 percent.
San Jacinto is primarily a residential community and will continue to have a substantial portion
of its land devoted to housing.
The City’s General Plan includes seven designations that allow for a range of housing types
and densities. The non-residential categories include a variety of designations, such as
community commercial, downtown commercial, business park, and industrial to promote a
wide range of revenue and employment generating businesses. Other non-residential
designations include public institutional and open space. According to the City, for the
remaining undeveloped lands, the General Plan identifies a mix of land uses to promote a
balance between the generation of public revenues and the cost of providing public facilities
and services.
The City provides water service to the urbanized area surrounding the downtown area only
which currently comprises a population of approximately 18,000. According to the City’s Urban
Water Management Plan (2015), the City is projected to have a water service population of
approximately 23,000 by 2040. The remainder of the City’s population receives water service
from either the Eastern Municipal Water District or the Lake Hemet Municipal Water District.
The City provides wastewater collection service to a much larger service area than its water
service area. The majority of the City of San Jacinto main line sewer collection system
maintenance is provided by the San Jacinto City Wastewater Division.
Disadvantaged Unincorporated Communities (DUCs)
Riverside LAFCO has identified one DUC within the City of San Jacinto’s sphere of influence.
The DUC consists of a large mobile home park, generally located east of State Street, north of
Saddleback Road, west of Lake Drive and south of Mountain View. The mobile home park,
Country Lake MHP, is within the Eastern Municipal Water District service area.
Present and Planned Capacity of Public Facilities
Water
The City owns and operates a water distribution system serving a portion of the City of San
Jacinto. The remaining portion of the City municipal boundary is served by the Eastern
Municipal Water District (EMWD) and the Lake Hemet Municipal Water District (LHMWD). The
City has approximately 4,139 service connections serving a population of approximately
18,000 people. Based on projections obtained from the Southern California Association of
Governments (SCAG), the population within the City water service area is estimated to be built
out by 2040 at about 6,000 meters or about 23,000 people.
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The City relies almost exclusively on groundwater pumped by four wells (the Grand Well, Bath
Well, Artesia Well and Lake Park Well). The wells produce groundwater from the San Jacinto
Groundwater Basin which covers an area of about 60 square miles. The Basin is drained by
the San Jacinto River and is recharged by surface runoff from adjacent mountains and hills, by
rainfall directly on the valley floor, and by return flow from water applied from overlying uses.
The Basin serves as a natural storage reservoir and filtering system for wells. In addition, the
Basin has a Groundwater Replenishment Program which uses treated imported water to
recharge the Basin.
The City’s 2010 Urban Water Management Plan notes that the general boundaries of the
Basin are the Casa Loma Fault on the southwest, which separates it from the Hemet and
Lakeview groundwater basins; the San Jacinto Fault on the northeast, along the base of the
San Jacinto Mountains; Valle Vista in the southeast and Moreno in the northwest. The Basin is
a structural trough located between two faults that have been filled with layered alluvial
materials, including clay, silt, sand and gravel.
The City’s four wells overlie a part of the Basin called the “Pressure Area.” The Basin in this
region is generally divided into an upper, unconfined aquifer and lower confined aquifer. The
groundwater in the deeper aquifer is typically under pressure due to the presence of a
relatively impervious, confining layer which provides some separation between the upper and
lower aquifers. The Grand Well has been constructed to a depth of 650 feet and pumps
primarily from the upper aquifer. The Bath Well, Artesia Well and Lake Park Well have been
constructed to a depth of approximately 1,300 feet, 1,210 feet, and 1,200 feet respectively,
and the primary water source is the lower aquifer. The Department of Water Resources does
not identify the Basin as being in overdraft.
In addition to groundwater from the San Jacinto Basin, the City also has access to treated
imported water from EMWD. Historically, 100 percent of the City’s water supply is from
groundwater, but the City does use treated imported water for emergency purposes or to meet
peak demands due to mechanical failure at one of the City’s wells. The City has three service
connections to EMWD. The connection at Hewitt and Evans has a capacity of about 2,000
GPM; the connection at Idyllwild and Tiger Lane has a capacity of about 600 GPM; and the
connection at Santa Fe and Esplanade has a capacity of approximately 600 GPM.
As stated above, the City has relied on groundwater from the Basin, making up all of the City’s
total water supply. However, the City has purchased treated imported water from EMWD
during calendar years 1995 through 1998, 2002 through 2004, 2006 and 2008 through 2017
primarily during summer months to supplement peak demands due to mechanical failure at
one of the City’s wells and for preventative maintenance. The City has not purchased imported
water from EMWD since 2017.
The City of San Jacinto's UWMP projects that all future demands will be met through
groundwater. The City will see an increase in population in its water service area from 17,961
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in year 2015 up to 23,000 in year 2040. At the same time, demand will increase from 2,268
AFY in year 2015 up to 3,792 AFY in year 2040, and groundwater will be a reliable source of
supply. The City of San Jacinto has already met the year 2020 per capita per day demand
target. According to the City’s UWMP (2016), projected supply will meet demand through the
year 2040.
Wastewater (Water Reclamation)
The City provides wastewater collection service to a much larger service area than its water
service area. The majority of the City of San Jacinto main line sewer collection system
maintenance is provided by the San Jacinto City Wastewater Division. By 2040, the City’s
sewer service population is projected to reach 23,000 similar to the city water service
population per the 2015 UWMP Update.
The City’s sewer wastewater collection system consists of approximately 113 miles of main
sewer lines ranging in sizes from 6” to 18”. Access to the collection system is provided with
2,486 manhole access locations. In addition to underground lines, the City also operates 3 lift
stations located on Mistletoe Avenue, Cottonwood Avenue, and Savory Lane. The system is
aging with 60 percent of the system 60 years or older. According to the State Water Board’s
California Integrated Water Quality System (CIWQS) website, ten percent of the system’s
sewer lines were installed before 1900, ten percent between 1900 and 1919, ten percent
between 1920 and 1939, ten percent between 1940 and 1959, 20 percent between 1960 and
1979, 20 percent between 1980 and 1999, and 20 percent after 2000.
The City does not own or operate any wastewater treatment facilities. All sewage generated
within the City wastewater system is provided to the Hemet/San Jacinto Regional Water
Reclamation Facility (RWRF), which is operated by EMWD and located outside the City’s
service area. In 2011, EMWD began a $157 million expansion project. Work on the facility was
completed in early 2015. The facility’s maximum capacity increased from 7.5 MGD to 14 MGD.
During 2015, the total wastewater generated, collected and treated within the City’s service
area was 869 acre-feet.
The new portion of the RWRF plant allows EMWD to receive wastewater from throughout the
San Jacinto Valley and, through a mostly biological process, transform it into tertiary-level
recycled water. That recycled water is pumped through a separate distribution system and
delivered to the region for non-potable reuse. Those uses include water for irrigation of crops,
golf courses, school fields, parks, and landscape medians.
Emergency Preparedness (Supply Interruption Capability)
Extended multi-week supply water shortages are unlikely due to natural disasters or accidents
which damage all water sources. The City’s Emergency Operations Plan describes the actions
the City will take during a catastrophic interruption of water supplies including, but not limited
to, a regional power outage, an earthquake, or other disaster. In the event of a system failure,
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the City has three emergency water interconnections with Eastern Municipal Water District.
These interconnections are manually activated and can supply water in the event the City may
need additional water due to a power failure or disaster.
The City has developed an SSMP for sewer operations which includes appropriate personnel
listings, resource inventories, locations for emergency operations centers, response
procedures, and the steps necessary to resume normal operations.
Financial Ability to Provide Service
The City has experienced significant impacts from the recent economic downturn since 2005.
In the most recent budget presentation for the City Council in June 2018, the City Manager
reports several new initiatives to promote civic and economic growth. Careful fiscal controls
have reduced deficit spending but have not restored a balanced budget.
Table 35 – City of San Jacinto Budget Information
FY 2014-15 FY 2015-16 FY 2016-17
Total City Revenues $ 33,631,000 $ 29,855,000 not provided
Total City Expenditures -33,125,000 -30,703,000 -43,493,266
Revenues minus Exp enditures $ 506,000 $ -848,000 $ not provided
Water Fund
Water Fund Revenues $ 3,646,398 $ 3,639,585 $ not provided
Water Fund Expenditures -3,323,761 -3,193,986 -4,566,202
Revenues minus Expen ditures $ 322,637 $ 445,599 $ not provided
Ending Net Position – Rev ised 2015 $ 6,674,588 $ 7,120,187 $ 6,422,945
Sewer Fund
Sewer Fund Revenues $ 867,117 $ 877,465 $ not provided
Sewer Fund Expenditures -968,490 -879,694 -893,620
Revenues minus Expen ditures $ -101,373 $ -2,229 $ not provided
Ending Net Position $ 4,606,811 $ 4,357,911 $ 4,246,170
Sources: City CAFRs 2015, 2016 and Proposed FY 2018-19 Budget Summary
There are seven primary areas of criteria that may be utilized to assess the present and future
financial condition of the District’s water and sewer service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratio of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
These are discussed below.
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1. 3 Year Revenue/Expenditure Budget Trends
The City as a whole has operated from use of reserves for several years and depended upon
reducing services and staffing to offset loss of revenues. The overall costs to operate the City
have increased about 22 percent in public safety contracts for police and fire services
impacting the General Fund. Recent improvements in the economy and building activity have
improved development revenues. The Water and Sewer Funds have seen consistent revenues
while expenditures have varied based upon infrastructure repair and utility costs. The Water
and Sewer funds are about 95 percent from service charges and less than 5 percent from
other sources.
2. Ratios of Revenue Sources
The Water and Sewer operations are funded predominantly from charges for services, about
95 percent. No property tax revenues are used for these enterprise funds. This level of funding
is typical of enterprise services and the consistency of revenues is stable.
3. Ratio of Reserves or Fund Balance to Annual Expenditures
The Water Fund reserve of $7,120,187 is about 223 percent of annual expenditures and
unrestricted reserves of $1,888,735 are about 60 percent of annual expenditures above the
suggested level by financial analysts who conduct rate studies. The Sewer Fund reserve of
$4,357,911 is about 475 percent of annual expenditures and unrestricted reserves of
$1,895,162 are about 210 percent of annual expenditures, well above the amount suggested
for emergency situations or repairs of facilities. Both programs also have capital reserves set
aside for annual equipment and major repairs if needed.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The water enterprise has two long-term liabilities, one loan and one note totaling $6 million and
due in 10- and 20-year periods. The debt service paid from Water Fund enterprise revenues is
approximately $320,000, about 6 percent of the funded budget and well below the target of 10
to 15 percent of expenditures. The sewer Fund enterprise has no debt but has an ongoing
liability to pay its percentage of treatment costs at the Eastern MWD WWTF.
5. Rate Structures
The City is in the process of conducting a Water and Wastewater Rate Study. The City’s rates
have not been adjusted in eight years. The study will identify the City’s priorities regarding rate
setting and implementing rates that reflect City objectives. Identifying revenue needs to
properly operate and maintain the City’s water and wastewater systems while minimizing rate
impacts will be an important component of the study. The study is expected to be completed
by June 2019.
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6. Capital Improvement Plan
The City as part of its annual budget process develops and approves a comprehensive Capital
Improvement Program/Plan including for enterprise functions. The recently approved FY 2018-
19 Budget includes approximately $22.3 million with only one funded project for the Water
enterprise of $327,355 that continues the construction to replace a water pipeline begun in
2017. The Sewer enterprise has no funded capital projects at this time.
7. Pension Liability and Other Post- Employment Benefits Liabilities
The City provides both pension benefits and other post-employment benefits to employees
and spouses as long as they meet plan requirements. GASB reporting requirements changed
in 2016 to require recording these liabilities to the financial reports and balance sheet. The City
audit for 2017 reports an approximate liability for pensions of $6,316,067 as of 2016 that is
being paid down over time as provided by law. The audit states that all required pension
payments had been made as of June 30, 2017. A detailed description of the programs and
expenses is provided in the Annual Financial Report on the city webpage.
Status and Opportunities for Shared Facilities/Services
Shared services include:
• All sewage generated within the City wastewater system is provided to the Hemet/San
Jacinto Regional Water Reclamation Facility (RWRF), which is operated by EMWD and
located outside the City’s service area.
• The City has three emergency water interconnections with Eastern Municipal Water
District. These interconnections are manually activated and can supply water in the
event the City may need additional water due to a power failure or disaster.
• Police and fire services are provided through contract with the Riverside County
Sheriff’s Department and the Riverside County Fire Department, respectively.
Government Structure and Accountability
The City of San Jacinto, a general law city, is governed by a five-member City Council, elected
at large. Meetings are held twice monthly, on the first and third Tuesdays, at 625 S. Pico
Street, San Jacinto, CA 92583. Closed Session begins at 5:30 p.m., and Public Session
begins at 6:30 p.m.
Reasonable arrangements are made for those citizens with disabilities when the City Clerk’s
Office is notified in advance of a meeting. Adequate notice is given to residents for City
Council meetings and meetings of the various City Commissions through posted agendas and
through the City’s website.
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Table 36 – City of San Jacinto City Council Members
Council Member Term Expires
Russ Utz, Mayor November 2020
Andrew Kotyuk, Mayor Pro-Tem November 2020
Alonzo Ledezma November 2022
Joel Lopez November 2022
Crystal Ruiz November 2020
The City’s website has access to City Council agendas, minutes, public notices, budgets,
audits and other key City documents. Phone numbers and email addresses for department
heads are listed on the website, and email addresses are listed for City council members. The
City does not provide videotapes of City Council meetings on line.
Based upon past and current service provision practices, it is reasonable to conclude that
appropriate levels of public services can continue to be provided by the City of San Jacinto to
current and future populations under the existing government structure. No alternative
government structure options were identified for further consideration at this time.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
Eastern Municipal Water District (EMWD) is a public water agency formed on September 26,
1950 under the Municipal Water Act of 1911 (Water Code 71000, et seq.). In 1951, it was
annexed into the Metropolitan Water District of Southern California (MET) and gained access
to a supply of imported water from the Colorado River Aqueduct (CRA). Today, EMWD
remains one of MET’s 26 member agencies, one of two in Riverside County, and also receives
water from Northern California through the State Water Project (SWP) in addition to deliveries
through the CRA.
EMWD’s initial mission was to deliver imported water to supplement local groundwater for a
small, mostly agricultural, community in Riverside County. Since that time, EMWD’s list of
services has evolved to include groundwater production, desalination, water treatment
filtration, wastewater collection and treatment, and regional water recycling. EMWD provides
both wholesale and retail water service covering a total population of over 816,000. EMWD’s
adopted mission is “to provide safe and reliable water and wastewater management services
to our community in an economical, efficient, and responsible manner, now and in the future.”
EMWD is located in western Riverside County, east southeast of the cities of Riverside and
east of the I-15 freeway corridor. The 542 square mile service area includes seven
incorporated cities in addition to unincorporated areas in the County of Riverside. The cities
and unincorporated areas within EMWD’s boundary include: City of Hemet, City of Menifee,
City of Moreno Valley, City of Murrieta, City of Perris, City of San Jacinto, City of Temecula;
communities of Homeland, Lakeview, Nuevo, Quail Valley, Romoland, Valle Vista and
Winchester in most of the listed areas, EMWD provides both water and sewer service.
In some areas EMWD provides only sewer or water service or provides wholesale water to a
purveyor agency. Additionally, EMWD is a wholesale potable provider to the following
agencies: City of Hemet Water Department, City of Perris Water System, City of San Jacinto
Water Department, Lake Hemet Municipal Water District (LHMWD), Nuevo Water Company
and the Rancho California Water District (RCWD). EMWD also sells recycled water produced
from its wastewater treatment plants to RCWD and Elsinore Valley Municipal Water District
(EVMWD). EMWD has an emergency connection with the City of Perris’ North Perris Water
System.
EMWD serves water through 148,473 connections to approximately 546,000 customers and
sewer service to 245,013 lateral connections to approximately 816,000 customers (sources
are 2015 UWMP and 2017 CAFR). EMWD has four sources of water supply: imported water
from MET, local groundwater, desalinated groundwater, and recycled water. Delivery points for
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each source of water are located throughout the EMWD service area and described in
sections of this report.
Imported potable water is treated and delivered to EMWD directly from MET’s two regional
filtration plants: 1) The Henry J. Mills (Mills) Water Treatment Plant treats water from Northern
California and provides it to EMWD through two connection points located in the northeast
portion of EMWD’s service area. 2) The Robert F. Skinner (Skinner) Water Treatment Plant
north of Temecula treats a blend of water from the Colorado River and water from Northern
California and provides it to EMWD through a connection point in the southern portion of
EMWD’s service area.
EMWD owns and operates two microfiltration plants that filter raw non-potable imported water
from MET, treating it to achieve potable water standards. The two treatment plants, the Perris
Water Filtration Plant and the Hemet Water Filtration Plant, are located in Perris and Hemet,
respectively. Raw water from Northern California provided by MET is also used for
groundwater replenishment in the eastern part of EMWD. EMWD can extract this water at a
later date for beneficial uses. Untreated water from MET is used for agricultural purposes and
is delivered in the northeast area for use by EMWD retail and wholesale accounts and in the
south for RCWD agricultural accounts.
EMWD produces potable and brackish groundwater from the San Jacinto Groundwater Basin
that underlies the EMWD service area. Groundwater wells are located within the San Jacinto
Watershed and serve the northern and eastern portions of EMWD, with the largest amount of
production taking place around the cities of Hemet and San Jacinto. EMWD owns and
operates two desalination plants in Menifee; the Menifee Desalter and the Perris I Desalter,
which treat brackish groundwater through reverse osmosis to achieve potable water
standards.
In addition to the potable system, EMWD maintains a regional recycled water system that
provides tertiary-treated recycled water to customers for agricultural, landscape irrigation,
environmental, and industrial use. EMWD’s recycled water system consists of four regional
water reclamation facilities (RWRFs) that treat municipal sewage and produce water for
recycling. The four RWRFs, the San Jacinto Valley RWRF, the Moreno Valley RWRF, the
Temecula Valley RWRF, and the Perris Valley RWRF, are spread throughout EMWD’s service
area.
In April 2017, the District began providing potable water service to customers previously
served by the County Water Company of Riverside in the City of Menifee. In 2013, the District,
along with Elsinore Valley Municipal Water District (EVMWD), was engaged by the State and
the County of Riverside to provide water service and assume ownership of the County Water
Company, a private, for-profit company located in the County of Riverside. The County Water
Company served less than 150 residences over a 1,280-acre service area with a single well
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source that was often unreliable and out of service. The water delivered had nitrate levels well
above the federal and state regulatory agencies drinking standards.
In order to provide safe and reliable potable water service and consolidate the County Water
Company into the District and EVMWD (eastern portion to the District and western portion to
EVMWD), a new water system in the area was constructed with the County of Riverside acting
as intermediary. The state provided $2.9 million of the project cost of $3.4 million. EMWD’s
service area boundary and the cities within that boundary are illustrated on the following map.
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Exhibit 8 – Eastern Municipal Water District
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Eastern Municipal Water District – Agency Profile
General Information
Agency Type Municipal Water District Act of 1911; section 71000 Water Code
Date Formed September 26, 1950
Services Retail water, recycled water, sewer collection and treatment
Service Area
Location Central Riverside County south of Hwy 60 to Temecula east of I-215
Square Miles/Acres 542 square miles/ 346,808 acres
Total Water/Sewer Connections Water: 148,473 (2017 CAFR) Sewer: 245,013
Population Served Water: 546,146 (UWMP 2015) Sewer: 816,411 (2017 CAFR)
Water Infrastructure
Facilities Perris and Hemet Water Filtration Plants; 16 potable wells, 12 non-potable wells; 2,380
miles pipeline; 79 reservoir tanks; 84 pump stations
Storage Capacity 211 MG in system
Primary Source of Supply 14 Groundwater wells / 14 Brackish Wells with 2 Desalter and 2 Filtration Plants (16%);
Imported water via connection to MWD (49%); 35% recycled water
Water Rates (single-family home) District uses a three tier rate structure: Indoor Use - $1.03 (base), $5.67 (excessive use)
and $11.59 (wasteful) per HCF; Outdoor/landscape use has a three tier structure - $3.44
(base), $7.00 (excessive use) and $11.68 (wasteful use) per HCF.
Sewer Infrastructure
Facilities 1,790 miles collection system to four RWRFs in San Jacinto, Moreno, Perris,
Temecula Valleys
Current and Projected Treatment 69 MGD currently and another 8 MGD under development
Capacity
Primary Disposal Method Tertiary recycled water for municipal, industrial, and irrigation
Sewer Rates (single-family home) Vary by area served
Budget Information - FY 2017-2018 (Water & Sewer Funds)
Revenues Expenditures Net Surplus/(Deficit)
Water and Sewer Fund $227.8 million $221.3 million $6.5 million
Government Fund (none) $0 $0 $0
Combined City Funds $227.8 million $221.3 million $6.5 million
Capital Expenditures FY 2017-2018 Long-Term Planned Expenditures
$111.5 million $346.8 million in 2018-22 CIP Plan
Water Fund Balance/Reserves $24.2 million
Sewer Fund Balance/Reserves $38.1 million
Agency Net Funds - Unrestricted $62.3 million
Governance
Governing Body Five member Board elected by division
Agency Contact John Ward, 951-928-3777, ext. 4453; wardj@emwd.org; Board of Directors meets first and
third Wednesdays each month at 9:00 a.m. at District office, 2270 Trumble Road, Perris,
CA 92570
Sources: Website, 2017 CAFR, UWMP 2015, approved 2017-18 Budget & CIP, questionnaire response
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Growth and Population Projections
As part of an Urban Water Management Plan Update completed in 2016, EMWD developed
population and growth projections. The current and estimated future service population for
EMWD wholesale and retail services are shown in the tables below.
Table 37 – EMWD Wholesale Population Projections, 2015-2040
2015 2020 2025 2030 2035 2040
215,075 239,400 267,300 291,100 314,400 335,500
Source: UWMP (2015)
Table 38 – EMWD Retail Population Projections, 2015-2040
2015 2020 2025 2030 2035 2040
546,146 617,100 699,800 784,100 864,200 939,100
Source: UWMP (2015)
Between 2015 and 2040, the District’s retail service population is expected to increase in
service population by approximately 106,000 connections or 392,900 residents. The majority
of this growth is expected to be in the cities and the suburban communities within the District’s
service area.
Disadvantaged Unincorporated Communities (DUCs)
In preparation of the 2015 UWMP, the District consultant identified that DUC areas existed
within the District service area. LAFCO documentation reveals that 15 DUC areas are within
the EMWD, and all have access to being served both water and sewer service.
In the Hemet area:
• Donald Street/California Avenue, west of the City of Hemet
• Roseland Mobile Home Park
• E. Stetson Avenue/S. San Jacinto Street
• E. Acacia Avenue
• Columbia Street/Mayberry Avenue
• So. Dartmouth Street/Mayberry Avenue
• Ridge area
• New Chicago Avenue/E. Acacia Avenue
• Mountain View Mobile Home Park
• Valle Vista area
• Georgia Avenue/Highway 74 area
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In the Perris area:
• Una Street/Alexander Street - Mead Valley
• Mead Valley North
• Luckens Lane/ West San Jacinto Avenue
• Mead Valley - South
Additionally, in the Temecula Area, there is one DUC adjacent to the SOI in the Pechanga
area but outside the service area of water facilities.
Present and Planned Capacity of Public Facilities
EMWD utilizes water supplies from three primary sources of water supply or to supplement the
drinking water supply: Imported water from MET, local groundwater and recycled water
produced by the four RWRFs in the area. Some water is imported and stored underground for
later extraction, treatment and use. The potable water system consists of 2,380 miles of
pipelines, 79 storage tanks with 211 MG of capacity, 84 pumping plants, 14 potable wells and
two water filtration plants and two desalters totaling 44 MGD capacity for a total system
capacity of 260 MGD.
Imported Water (Purchased)
EMWD purchases imported water from MET in three forms: treated water that is supplied
directly into the potable water system, raw water that is treated at EMWD’s two local filtration
plants and then supplied to the potable system, or raw water that is used for irrigation and
other non-potable use and to recharge the groundwater basin. EMWD depends on MET for
approximately half of its retail water supply. For the past 5 to 8 years, EMWD has been able to
maintain a balance of local and imported water even as new connections were added. This
was accomplished through the implementation of local supply projects and increased water
use efficiency. In 2015-2016, EMWD’s reliance on MET was lower than average due to
mandatory restrictions put in place by SWRCB, which required EMWD customers to reduce
their demands based on state mandated requirements.
During the 1970-80s period, MET acquired additional supplies by contract through the SWP,
water from Northern California. EMWD built facilities to take advantage of the SWP water
becoming available, and today, the largest portion of EMWD’s water supply is provided from
the SWP. EMWD is also has facilities to accept CRA water deliveries from MET and the ability
to increase use of CRA water if SWP supplies are strained. Treated potable water is available
in the Northern area from MET’s Mills Water Treatment Plant and in the south through MET’s
Skinner Water Treatment Plant. EMWD also owns and operates two water filtration plants that
treat raw imported water: the Perris Water Filtration Plant and Hemet Water Filtration Plant.
Raw imported water is also used for recharge purposes and to meet agricultural demands.
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Based on information provided by EMWD and other member agencies, MET has determined
in its planning and UWMP that it is able to meet the demands of all member agencies through
2040.
Groundwater
EMWD draws on average approximately 15 to 20 percent of its water supply from two
groundwater basins that serve different areas of the District. EMWD has 14 potable wells. The
two areas are the West San Jacinto Groundwater Basin Management Plan area (West San
Jacinto Basin) and the Hemet/San Jacinto Water Management Plan area (Hemet/San Jacinto
Basin). EMWD also owns and operates two desalination plants that convert brackish
groundwater from the West San Jacinto Basin into potable water. These plants not only
provide a reliable source of potable water, they also protect potable sources of groundwater
and support EMWD’s groundwater salinity management program.
EMWD is a key player in three cooperative efforts to protect groundwater quality and reliability.
The West San Jacinto Basin is subject to the West San Jacinto Groundwater Basin
Management Plan (WSJ Management Plan), developed in 1995. The Hemet/San Jacinto
Basin is subject to the HSJ Management Plan, developed in 2007. The HSJ Management Plan
is implemented by the Hemet-San Jacinto Watermaster (Watermaster). The Watermaster was
appointed and is supervised by the Superior Court of the State of California for the County of
Riverside, pursuant to the Stipulated Judgment entered in April 2013. Participants to the
Watermaster Board include EMWD, Lake Hemet Municipal Water District (LHMWD), the cities
of Hemet and San Jacinto, and private groundwater producers. One of the goals of the
Watermaster is to ensure that groundwater is managed sustainably to support the superior
water right held by the Soboba Band of Luiseño Indians (Soboba Tribe). EMWD, LHMWD and
the Soboba Tribe also actively manage water levels in the Canyon Sub basin in a corporative
effort as part of the Canyon Operating Plan.
Native potable groundwater production in the Hemet/San Jacinto (HSJ) Basin is limited under
the HSJ Management Plan provisions to prevent overdraft. EMWD’s rights under the HSJ
Management Plan will be a long-term adjusted base production right of 7,303 AFY. EMWD’s
adjusted base production right will be gradually reduced to the long-term value by 2019. In
2015, EMWD’s base production right was 9,300 AF, not including previously recharged water
credited to it. Any pumping above that amount is subject to replenishment fees. EMWD has
recently entered into an agreement with the City of San Jacinto to purchase some of the city’s
unused groundwater for EMWD’s use.
In 2008, Congress passed and the President signed the Soboba Settlement Act that provided
to the Soboba Tribe an annual water supply of 9,000 AF, 128 acres of land near Diamond
Valley Lake for commercial development, and approves and ratifies the Soboba Settlement
Agreement that set forth $17 million from the local water districts for economic development.
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Additionally, the United States government provided the Soboba Tribe with $11 million for
water development.
The agreement terminated litigation against MET and EMWD, which was filed by the Soboba
Tribe in April 2000 (Soboba Band of Luiseño Indians v. MWD). The lawsuit sought damages
and injunctive relief for the continuing drainage of water from the Soboba Reservation into
MET's nearby San Jacinto Tunnel which was constructed in the 1930s. The bill mandated, on
average, an annual delivery of 7,500 AF of water by MET for the next 30 years to EMWD,
LHMWD, and the cities of Hemet and San Jacinto, as part of an effort to recharge imported
water in the HSJ Management Plan area of the San Jacinto Groundwater Basin, fulfilling the
Soboba Tribe’s water rights and addressing chronic groundwater overdraft.
As outlined in the Soboba Settlement Act, the cities and agencies also received $10 million in
federal funds to build the facilities to recharge the aquifer with the imported water, and
between 6,100 and 4,900 AFY of the Soboba Tribe’s water (on a declining scale over a 50
year period) to be used towards basin replenishment. The Soboba Tribe will also make 98
acres of Soboba Reservation land available for endangered species habitat, on an acre for
acre basis, to replace EMWD land found to be not suitable for mitigation. In 2015, the Canyon
Operating Plan, an agreement between EMWD, LHMWD and the Soboba Tribe, was
completed as a result of a Memorandum of Understanding (MOU) related to the Soboba
Settlement Act. The Canyon Operating Plan provides a framework for operating the Canyon
Management Zone in a manner to avoid significant impacts to the Soboba Tribe’s wells and
does not reduce the overall supply available in the Hemet/San Jacinto Basin.
The HSJ Management Plan recognizes that the HSJ Management Plan area has been in a
condition of groundwater overdraft. In 2007, the overdraft was estimated to range from 10,000
to 15,000 AFY. The Watermaster has implemented long-term base production rights that will
eliminate overdraft conditions within the HSJ Management Plan area, with interim production
rights that step down gradually. In 2015, EMWD’s annual base production right in the
Hemet/San Jacinto Basin was 9,300 AF. The long-term annual base production right for
EMWD is 7,303 AF.
Through pilot programs and using temporary facilities, EMWD has recharged groundwater in
the HSJ Management Plan area with imported raw water from MET since 1990. In April of
2004, EMWD, LHMWD, and the cities of Hemet and San Jacinto executed a MOU for an
Interim Water Supply Plan. The purpose of the plan was to address the deteriorating situation
in the HSJ Management Plan area by providing recharge of imported water from the SWP into
the aquifer at two sites – the Conjunctive Use Ponds in the Intake portion of the San Jacinto
Upper Pressure Groundwater Management Zone, and the Grant Avenue Ponds in the Canyon
Groundwater Management Zone. Approximately 20,819 AF of imported water from the SWP
was recharged into the aquifer in the period spanning from 2004 through 2007. Due to dry
conditions, environmental restriction, and the level of demands in its service area, MWD
curtailed Replenishment Service effective as of May 1, 2007.
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Since then, permits to recharge water at the two sites have expired. To replace the temporary
recharge facilities, long-term facilities are being operated as part of the Integrated Recharge
and Recovery Program (IRRP), an integral piece of the HSJ Management Plan and the
Soboba Settlement Agreement. The IRRP consists of 35 acres of basins or ponds for
recharging SWP from MWD; three extraction wells; three monitoring wells; modification to two
existing pump stations; and pipelines within, and adjacent to, the San Jacinto River. EMWD
and the other three local agencies are also contributing to the replenishment of the basin by
providing recycled water in lieu of groundwater production. The Recycled In-Lieu Program
supplies recycled water for agricultural irrigation in-lieu of pumping native groundwater. The
project can deliver up to 8,540 AFY to local agricultural water producers. The project costs are
jointly funded by EMWD, LHMWD, and the Cities of Hemet and San Jacinto. Agreements that
set limits on groundwater production and provide for a payment of a portion of the operation
and maintenance costs have been in place since 2008.
EMWD anticipated the limitations on native groundwater production and has developed
alternatives to enhance the reliability of its water supply, including the IRRP facilities, filtration
plants to treat and deliver imported water to areas dependent on groundwater, and recycled
water use for irrigation of landscape and agriculture. In addition to the existing IRRP, EMWD is
developing the Enhanced Recharge and Recovery Program (ERRP) to increase conjunctive
use and facilitate groundwater banking. Phase 1 of the ERRP program is included in the Santa
Ana River Conservation & Conjunctive Use Program (SARCCUP), a cooperative program to
store imported water during wet years for use during dry years that was successful at receiving
Prop 84 funds. Both management plan areas are part of the San Jacinto Groundwater Basin
(DWR Bulletin 118 Groundwater Basin Number 8-05). More detail information on groundwater
supplies, facilities and water quality may be found in the District’s UWMP 2015 Update on its
website.
Table 39 – EMWD Groundwater Production, 2011-2015
2011 2012 2013 2014 2015
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
17,465 15,490 18,824 12,037 15,249
Source: UWMP Update (2015)
Surface Water
EMWD holds a right to divert up to 5,760 AFY of San Jacinto River flows for recharge and
subsequent use annually from September 1st through June 30th of the following calendar
year. EMWD's diversion and recharge of San Jacinto River surface water takes place at
EMWD’s Grant Avenue Ponds in the Valle Vista area. EMWD's diverted water is recharged
into the groundwater aquifer of the Canyon Groundwater Management Zone and is not used
for direct use or sale. The San Jacinto River is an ephemeral river and, consequently, river
flows may be insufficient for any diversion at all in some years. Water that is recharged helps
the regional water balance and contributes to the safe yield of the basin.
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Desalinated Water
EMWD currently uses groundwater desalination to remove salts from basins in the West San
Jacinto Basin. This 250-square-mile area experiences increasing water levels due to the
inward migration of high total dissolved solids (TDS) groundwater and decreased production.
The high TDS groundwater is migrating into the Lakeview portion of the Lakeview/Hemet North
Management Zone, which is an area of good quality groundwater. Lowering groundwater
levels and removal of saline groundwater is an integral element of the WSJ Management Plan.
To address these concerns, EMWD implemented a Groundwater Salinity Management
Program. This program currently consists of two desalination facilities owned and operated by
EMWD. These facilities recover high TDS groundwater from the Menifee and Perris South
Management Zones, and the Lakeview portion of the Lakeview/Hemet North Management
Zone, for potable use. In addition to being a source of potable water, the main role of the
desalters is to play a part in managing the groundwater management zones by addressing the
migration of brackish groundwater into areas of good quality groundwater. Desalter wells pump
water to an integrated brackish water system that delivers water to the desalination plants
where it is treated prior to entering the distribution system.
The Menifee Desalter was the first desalter to be built. This facility began producing potable
water in 2003. The second desalter, the Perris I Desalter, is located next to the Menifee
Desalter in Sun City. This plant began production in 2006 and has a production capacity of
10.5 CFS. Groundwater extraction for use in the desalter program has caused local declines in
water levels to date; but the overall West San Jacinto Basin shows groundwater levels that
continue to exhibit a stable or upward trend. High iron and manganese concentrations along
with silica irreversibly impact the desalter membranes and have resulted in several brackish
groundwater extraction wells being offline.
In 2004, an effort was initiated to evaluate alternative technologies for removal of iron and
manganese prior to desalination. In late 2013, iron and manganese removal facilities were
placed online and allowed EMWD to begin producing from four previously inactive wells.
Around 9,000 AF of brackish groundwater was pumped in 2014 and 2015, which fed roughly
7,000 AF of potable water into the retail system, a significant increase over the 4,800 AF of
potable water generated from the desalters in 2013. EMWD has designed a third desalter, the
Perris II Desalter, which will be located across the street from the existing desalters to the
north. The Perris II Desalter is designed to have a capacity of 3.5 to 5.4 million gallons per day
and is scheduled to be built in two phases, with the first coming online sometime in the 2020 to
2025 timeframe.
Wastewater (Reclamation)
EMWD is a wastewater treatment agency that provides wastewater collection, treatment, and
recycled water services throughout its service area. Recycled water is extensively used in
EMWD’s service area to meet non-potable demands. The supply of recycled water will
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continue to increase with EMWD’s population size (though it is also impacted by conservation
measures). The four RWRFs that EMWD operate, San Jacinto, Moreno, Perris and Temecula
Valley Reclamation Facilities, have completed expansions.
Recycled water is currently used for both municipal and agricultural purposes. Municipal
customers use recycled water for landscape irrigation and industrial process water. Agricultural
customers use recycled water for irrigation of crops. A portion of agricultural demand for
recycled water is provided in-lieu of using groundwater. Due in part to drier conditions and
higher demands, EMWD has been able to meet its goal to minimize discharges and using all
of the recycled water available within EMWD for the past two years. Some of the recycled
water use offsets demands of existing potable customers.
EMWD has been active in developing local and regional plans for expanded water recycling in
its service area. EMWD’s first Recycled Water Facilities Master Plan was developed in 1990
and was formally updated in 2010. In 2009, EMWD completed a Recycled Water System
Strategic Plan that provides guidelines for moving forward with recycled water projects.
Information from the strategic plan was incorporated into the EMWD Integrated Resource Plan
(IRP) to evaluate potential recycled water projects. EMWD is in the process of updating all
three planning efforts with the development of its 2015 Recycled Water Strategic and Master
Plan and its 2015 IRP.
EMWD’s local water recycling plan is also incorporated into the 2014 IRWM Plan developed by
SAWPA for the Santa Ana River Watershed. EMWD has worked closely with the Santa Ana
Regional Water Quality Control Board in updating local basin plans and developing a long-
term salinity management plan to support and ensure compliance with local basin objectives
for salinity and nitrogen. EMWD is also participating in the development of a Total Maximum
Daily Load analysis for impacted surface waters in the Santa Ana River Watershed. EMWD is
involved with a variety of local agencies and public interest groups in recycled water planning
efforts and has coordinated these agencies as part of the development of their UWMP 2015
Update.
EMWD is responsible for all wastewater collection and treatment in its service area. It has four
operational RWRFs located throughout EMWD. Inter-connections between the local
collections systems serving each treatment plant allow for operational flexibility, improved
reliability, and expanded deliveries of recycled water. All of EMWD’s RWRFs produce tertiary
effluent, suitable for all tertiary recycled water uses, including irrigation of food crops. The four
RWRFs have a combined production capacity of 81,800 AF/year as follows: San Jacinto
Valley – 15,700, Moreno Valley – 17,900, Temecula Valley – 20,200 and Perris Valley –
28,000. This totals approximately 69 MGD and another five MGD is under development.
In addition to wastewater treatment facilities, EMWD has several recycled water storage ponds
throughout EMWD. Using existing storage ponds, EMWD is able to sell more than the recycled
water produced by its treatment plants during the peak demand months (June – September).
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During the cooler, wetter parts of the year, surplus recycled water is stored in unlined surface
impoundments, resulting in some degree of incidental groundwater recharge. If storage
capacity is full, surplus recycled water is disposed of through a regional outfall pipeline to
Temescal Creek and the Santa Ana River. EMWD treats all of the wastewater collected in its
service area to tertiary standards and disposes of its recycled water in one of three ways; 1)
customer sales, 2) discharge to Temescal Creek, or 3) through percolation and evaporation
while stored in ponds throughout EMWD. In 2017, EMWD collected and treated a total of
47,032 AF of wastewater at its four RWRFs.
In total, EMWD has 1,790 miles of collection pipelines and 69 MGD of treatment capacity with
an additional five MGD under development.
Recycled Water System
EMWD produces recycled water from its RWRFs to maximize the available water to offset
imported and groundwater demands. According to the 2015 UWMP, in 2015, EMWD produced
45,385 AF of recycled water for distribution to retail and wholesale customers throughout its
service area. System losses such as storage pond evaporation and incidental recharge
accounted for 11,384 AF of this quantity, and the remainder was available as a supply.
The majority of recycled water sold is used for agricultural irrigation. A portion of the water sold
for agriculture is used in lieu of groundwater, preserving the groundwater basin and improving
water supply reliability. In addition to meeting agricultural demand, recycled sales to municipal
customers are increasing rapidly as residential and urban development replaces irrigated
farmland. Landscape irrigation is an emerging market and in 2008, EMWD started selling
recycled water to a large industrial customer for cooling towers in a power generation plant.
EMWD also sells recycled water to the CDFW for environmental use within the San Jacinto
Wildlife Area and to recreational customers that are comprised of private duck clubs and bird
sanctuaries that use recycled water for ponds.
EMWD, EVMWD, and RCWD entered a five-year agreement in March 2009, which was
extended for another five years in 2014, to coordinate use of recycled water supplies in the
region and to establish wholesale recycled water prices for EVMWD and RCWD. This
agreement establishes EMWD’s recycled water availability and uses with other neighboring
agencies. In addition, EMWD has an agreement with EVMWD to sell excess recycled water
from Eastern MWD to provide to current recycled water customers. Under this agreement,
EVMWD can purchase between 5,000 and 30,000 acre-ft per year of surplus effluent if
available.
The recycled water system consists of 207 miles of pipeline from the four RWRFs, 24 pumping
facilities and 7,571 AF of storage capacity (2,466 MG).
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Water Demand Projections
The UWMP Act requires a water retailer to quantify the minimum water supply available during
the years 2016 to 2018, assuming years 2016 to 2018 repeated the driest three-year historic
sequence for each water supply source. EMWD’s estimated minimum supplies are shown in
Table 40 below. These supplies are based on the anticipated reliability of imported water from
MET and local groundwater.
Table 40 – EMWD - Minimum Supplies: Wholesale and Retail Total, 2016-2018
2016 2017 2018
(acre-feet) (acre-feet) (acre-feet)
154,400 158,200 162,200
Source: UWMP Update (2015)
In addition to the three-year “look ahead,” the 2015 UWMP projects supply and demand 20
years in the future. EMWD projects supply reliability into the future based on both locally
planned water supply projects and the regional planning MET has completed.
Supply and Demand Assessment
Historically, there is often an increase in water use among agencies similar to EMWD due to
increased development. Conservation efforts are effective in decreasing water use when
required to address drought conditions or regulatory requirements. Additionally, the District has
adopted a Water Shortage Contingency Plan that includes increased levels of conservation
and rate increases for certain uses in response to supply restrictions or regulatory
requirements. In the District’s recent UWMP 2015 Update, EMWD estimated that demands
could increase five to ten percent during a single dry year due to some area property owners
experiencing less precipitation and requiring additional irrigation water supplementation.
However, during an extended multiple dry year period, it is expected that conservation
messaging and restrictions would lead to consumption dropping back down to normal year
levels in the second dry year, and falling a further ten percent in the third dry year.
The following tables summarize the anticipated supplies and demands for a Normal or Single
dry year for wholesale and retail based upon growth forecasts for EMWD.
Table 41 – EMWD Wholesale Normal Year Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 52,156 58,866 62,883 66,800 70,400
Demand Totals 52,156 58,866 62,883 66,800 70,400
Difference 0 0 0 0 0
Source: UWMP Update 2015
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Table 42 – EMWD Retail Normal Year Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 145,745 159,834 172,917 185,800 197,800
Demand Totals 145,745 159,834 172,917 185,800 197,800
Difference 0 0 0 0 0
Source: UWMP Update 2015
Table 43 – EMWD Wholesale: Single Dry Year Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 58,500 66,200 70,700 75,200 79,300
Demand Totals 58,500 66,200 70,700 75,200 79,300
Difference 0 0 0 0 0
Source: UWMP Update 2015
Wastewater Collection and Treatment
EMWD is responsible for all wastewater collection and treatment in its service area. It has four
operational RWRFs located throughout EMWD. Inter-connections between the local
collections systems serving each treatment plant allow for operational flexibility, improved
reliability, and expanded deliveries of recycled water. All of EMWD’s RWRFs produce tertiary
effluent, suitable for all tertiary recycled water uses, including irrigation of food crops. The four
RWRFs have a combined production capacity of 81,800 AFY (or 69 MGD according to the
District). In 2017, total treatment volume was 47,032 AF. These RWRF Treatment Plants are
listed below.
RWRF Treatment Plant Acre-Feet per Year
San Jacinto Valley 15,700
Moreno Valley 17,900
Temecula Valley 20,200
Perris Valley 28,000
Total 81,800
Source: UWMP Update 2015
EMWD treats all of the wastewater collected in its service area at the RWRFs to tertiary
standards and disposes of its recycled water in one of three ways; 1) customer sales,
2) discharge to Temescal Creek if required, or 3) through percolation and evaporation while
stored in ponds throughout EMWD. In 2017, EMWD collected and treated a total of 47,032 AF
of wastewater at its four RWRFs. While EMWD sells recycled water to wholesale customers
RCWD and EVMWD, the recycled water originates from wastewater collected and treated
within EMWD’s wholesale service area. EMWD does not provide supplemental treatment to
the recycled water it distributes.
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In total, the EMWD sewer system has 1,790 miles of collection pipelines, 46 lift (pumping)
stations and treatment capacity totaling 69 MGD and an additional 5 MGD under development.
Emergency Preparedness (Supply Interruption Capability)
EMWD is dependent on MET for the majority of its water supply. MET has prepared for
emergencies using a combination of storage, facility design and redundant power sources.
Emergency storage requirements are based on the potential for a major earthquake that
renders major water transportation facilities out of service for six months. Assuming 100
percent of its supplies are unavailable for six months, MET has enough water storage to
sustain 75 percent of normal year firm deliveries. In the event of a major power outage, water
supply can be delivered by gravitational feed from recreational reservoirs, including Diamond
Valley Lake Reservoir. For treatment plants, MET has backup power generators in place in
case of electrical outages. Additional information about addressing catastrophic supply
interruption can be found in Section 2.5 of MET’s 2015 UWMP.
To protect EMWD customers in the case of an emergency, EMWD has developed the Water
Shortage Emergency Operations Plan (WSEOP). This plan determines the operation response
to many types of emergencies. It specifies chain of command and provides the authority to
respond. Elements of that response can include interdepartmental staff notification and
mobilization; activation of alternative water supply sources (i.e., interagency connections), use
of temporary pumping facilities; use of power generators; public notification; and activation of
conservation measures. An emergency is defined as any time period when MET or EMWD
facilities are incapable of supplying potable water. An emergency could be caused by a natural
disaster such as an earthquake or through facility failures.
The WSEOP describes the coordination required between operational staff, management,
community involvement staff and other EMWD employees. In addition, communication and
cooperation will be required with the community and other agencies such as the Department of
Health Services and MET. In the event that one or more water supply sources are unavailable,
remaining sources of supply will be maximized to meet demand. If needed, the WSCP could
be implemented to conserve water and reduce demand. If an electrical or gas power outage
occurs, some of EMWD’s booster facilities have backup generators. Facilities without
redundant power sources may be served on a priority basis by available portable generators.
All Wastewater facilities are required to have emergency power capability for reliability. Main
lift pump stations also have emergency power or the capability for portable generators to be
connected.
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Financial Ability to Provide Services
As of June 30, 2017, the District reported unrestricted fund balance of $62,360,074, an
increase of $64,334,935 from the prior year. The net position of the District, the value of assets
and funds on hand for operations and capital investment was reported as $1,532,531,643, an
increase of $12,016,498 or about one percent from the prior year.
EMWD operates its water, sewer and recycled water services as enterprise funds within the
parameters of overall District operations. Water sales and service charges comprise the
substantial majority of operating revenues (68 percent) that fund the services provided for
water operations and administration. The same situation exists for the sewer operations. On
average, the EMWD receives approximately 14 percent of its revenues from property and
related taxes. The District utilizes these funds for wastewater operations, capital improvements
and debt service for new facilities on an as needed basis.
Overall, the District water, sewer and CIP funds are considered stable and self-sustaining for
operational, capital and debt service activities. Rate increases had been implemented over the
last several years to accommodate increased expenditures for maintenance and capital
improvements.
The District has adopted a comprehensive Cash Reserve Policy that designates funds for
various programs and long-term debts. The policy provides direction to District staff on
addressing reserves in the annual budget process. Reserves are established in various
categories and uses:
• Operating reserve – funds to ensure that adequate cash flow in the event of
extraordinary expenses or reduction in revenues; by Board resolution, the fund is to be
at a minimum one quarter of the annual maintenance and operating costs in the
operating budget. The actual reserve balance on June 30, 2017 was $37,459,564.
• Debt Reserve – To fund payment of principal and interest for debt financed facilities as
identified in CIP and FY Budgets. The SRF loan for the Hemet WFP requires a Debt
Service Reserve Fund of $2,104,920 to be on deposit in 2018.
• Capital Facilities Reserve – For payment of costs for new facilities required for current
and planned services and encumbered projects
• Replacement Reserve – Funds to replace aging facilities as planned in the Five-year
CIP.
The above reserves include various operating and emergency accounts to provide funding for
rate stabilization, operating reserves, capital assets and debt service coverage covenants.
A comparison of three years financial statistics from the published Comprehensive Audited
Financial Reports is provided below.
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Table 44 – EMWD Financial Statements, FY 2015-FY 2017
FY 2015 FY 2016 FY 2017
Operating Revenues
Water revenues – domestic $ 113,859,511 $ 107,319,708 $ 115,796,435
Water revenues – irrigation 3,435,641 5,137,718 5,074,502
Sewer revenues 77,120,505 87,184,856 92,536,116
Recycled water revenues 6,392,763 6,648,809 7,792,169
Total operating revenue $ 200,808,420 $ 206,291,091 $ 221,199,222
Operating Expenses
Water purchases $ 59,040,009 $ 50,334,462 $ 57,512,425
Water operations 45,691,510 43,582,087 44,089,564
Sewer operations 42,743,947 42,095,206 42,232,322
Recycled water operations 6,101,759 6,287,916 6,064,944
General and administrative 28,677,026 29,687,364 36,283,686
Depreciation/amortization 88,830,791 95,302,858 95,968,255
Net OPEB 8,568,000 9,478,577 9,732,444
Total operating expenses $ 279,653,042 $ 276,768,470 $ 291,883,640
Operating income (loss) $ -78,844,622 $ -70,477,379 $ -70,684,418
Non-Operating Revenues ( Expenses)
Property taxes (total) $ 34,100,580 $ 36,876,790 $ 38,578,024
Standby charges 5,735,466 5,784,242 5,831,357
Investment earnings 3,092,643 3,405,039 4,733,897
Change in investment value -5,731,338 1,607,359 -2,151,319
Interest – GO bond funds 45,068 44,559 68,172
Other income 10,834,613 18,313,734 16,439,820
Interest expense -18,104,541 -20,550,700 -22,823,362
Other expenses -8,221,492 -9,212,819 -8,293,642
Research/development costs – -3,572,614 -8,815,131
Gain/loss capital assets -1,734,798 -5,675,444 -2,825,645
Connection fees 28,07,625 45,715,784 40,565,197
Total non-operating revenue (net) $ 49,992,435 $ 75,675,617 $ 61,307,368
Net income (loss) before capital contributions $ -28,852,187 $ 5,198,238 $ -9,377,050
Capital Contributions
Developer contributions $ 57,086,793 $ 34,802,124 $ 12,498,450
Capital grants 2,112,456 2,823,624 6,164,479
Other contributions 11,763 20,291 2,730,619
Total capital contributions $ 59,211,012 $ 37,646,039 $ 21,393,548
Change in net position $ 30,358,825 $ 42,844,277 $ 12,016,498
Net Position
Beginning of year $ 1,550,571,926 $ 1,477,670,868 $ 1,520,515,145
Effect of GASB 68 -103,259,883
Net position - end of year $ 1,477,670,868 $ 1,520,515,145 $ 1,532,531,643
Source: Comprehensive Annual Financial Reports 2015, 2016, 2017
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There are seven primary criteria, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratios of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Plan
7. Pension Liability and Other Post-Employment Benefits Liability
1. 3 Year Revenue/Expenditure Budget Trends
The District funds overall has been experiencing modest surplus total revenues over expenses
as well as occasional increased spending over the last several years. However, this is
attributed primarily to planned capital expenditure debt service and cash flows. Appropriate
rate increases have been implemented for water and sewer over the prior years’ utilizing a
cost of service analysis to have services funded by fees and charges. The impact of adoption
of GASB 68 requiring expenses and liabilities for pension benefits impacted the 2015 net
position by $103 million. Ongoing pension and OPEB expenses are included in the expenses.
2. Ratios of Revenue Sources
The District receives 78 percent of its water and sewer fund revenues from charges and fees
for services, substantial revenue from property taxes (13 percent), and about 11 percent from
miscellaneous other sources including grants and connection fees. The ratios of designated
reserves and funds reflect an appropriate balance for typical enterprise fund services; this
minimizes the impact that negative economic factors might have on more elastic revenues
such as water sales and property tax (property tax has varied based upon the economic
picture over the past ten years).
3. Ratio of Reserves or Fund Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted or restricted cash reserve or fund balance the service
fund maintains in relation to the annual fund expenditures. The District designates reserves to
debt service and construction as restricted for reporting purposes so the fund balance ratio
fluctuates as projects are completed. The available unrestricted fund balance is approximately
21 percent of annual expenditures, slightly lower than a guideline of three to six months of
expenses. Including reserve for construction adjusts the fund balance to approximately 39
percent. This fund ratio represents an adequate ratio position and the designated reserves
have been increasing over time.
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4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the
District’s ability to meet debt obligations in relation to service provision expenditures. The
District has several State low interest loans, general obligation bonds and revenue bonds for
major capital projects. Long-term liabilities of debt are $1,107 million at June 30, 2017 and the
payments due in next year are $19.5 million. A significant amount of these loans and debt
issues are in Certificates of Participation and Revenue Bonds that have been issued to
refinance prior debt at more favorable interest rates. Ideally, a ratio of 10-15 percent or less
would reflect a very stable ratio. The District’s water, sewer and recycled funds have
reasonable debt, including refinancing of prior debt to reduce long-term expenses and to pay
for needed capital projects over time. The District’s annual debt service ratio to total
expenditures is approximately six percent, an acceptable ratio.
5. Rate Structures
The District has adjusted service charge methods and raised water and sewer rates annually
to keep pace with costs of operations and planned capital facility replacements. A Cost of
Service Study was completed in March 2017. For perspective of water service rates, in 2009, a
budget- based tiered rate structure was adopted for single-family and multi-family residential
and landscape domestic usage based upon an analysis of service and costs.
The residential water rates use a four tiered rate system and are established for three general
areas and have calculated rates based upon improvements made and costs of service.
Effective February 21, 2018, the District’s current rates range from typical domestic residential
water commodity rate (indoor use) changed to $1.03 (Base) – $5.67 (Excessive use) and
$11.59 (Wasteful) per 100 cubic feet of usage. Landscape use has a three tier structure of
$3.44 (base) - $7.00 (Excessive use) and $11.68 (Wasteful use). Commercial and recycled
customers have separate rates. Recycled and non-potable users pay a rate based upon 75
percent of domestic rate adjusted for each area. Wholesale rates average $857/AF plus
additional pass through costs when MET Tier 2 rate of $86/AF is added.
Water service charges are levied on a daily rate and a water meter base rate for up to a 1” size
meter for a 30 day month is $11.83. The typical residential customer with a 1” meter and using
20 HCF paid $68.53 in 2017. Rates in 2018 were adjusted slightly and rates in 2019 will
increase approximately 6 percent. Additional capacity fees and special services fees are set as
needed.
Sewer fees for the served areas effective February 21, 2018 for residential are levied on a per
day charge ranging from $.79 - $.85 in three service areas of Hemet/San Jacinto, Moreno
Valley and Sun City. The areas of Temecula/Murrieta fee are $1.00 per day and the area of
Perris Valley ranges from $1.09 to $1.15 per day. The Canyon Lake area served by EVMWD
rate is $1.06 per day plus a calculation of number of occupants times $6.93 per month.
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The District has other fees and charges for service and late fees can be found on the District
website at www.emwd.org
6. Capital Improvement Program/Plan
The District prepares a five-year financial plan to anticipate funding needs, reserve levels, and
expected impacts to Rates. A key component to the plan is the District’s Capital Improvement
Program/Plan (CIP), which calls for total expenses for water, sewer, and recycled water
facilities of approximately $346.8 million for the period from 2018 through 2022. The FY 2017-
18 portion of the CIP was $111 million. The CIP is expected to be financed through a
combination of property taxes, developer connection fees, rates and charges, publicly financed
bond proceeds, reserves, grants and low-interest loans from the California State Revolving
Fund.
The CIP is modified on an annual basis to reflect updated assumptions regarding future growth
within the District’s service area. Major projects being designed and constructed include the
Perris II Reverse Osmosis Treatment Facility ($41 million total less a State grant of $22.5
million), completion date in 2021; Recycled Water Storage Pond expansion ($14.1 million with
a SRF loan at 1 percent and possible grant of $3.4 million), completion in early 2018;
Temecula Valley Regional WRF expansion of 5 MGD ($120 million less a State grant of $15
million and low interest loan of $80.3 million), completion in 2020. A comprehensive list of the
CIP is available on the District website.
7. Pension Liability and Other Post-Employment Benefits Liability
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and
death benefits to plan members and beneficiaries to EVMWD employees. A “Classic”
CalPERS Miscellaneous member (hired prior to January 1, 2013) becomes eligible for service
retirement upon attainment of age 55 with at least five years of credited service. Public
Employees' Pension Reform Act (PEPRA) Miscellaneous members (hired on or after
January 1, 2013) become eligible for service retirement upon attainment of age 62 with at least
five years of service.
The service retirement benefit is a monthly allowance equal to the product of the benefit factor,
years of service, and final compensation. The final compensation is the monthly average of the
member's highest 36 full-time equivalent monthly pay. Retirement benefits for PEPRA
Miscellaneous members are calculated as a percentage of their plan based the average final
36 months compensation.
California law requires an annual calculation of the net pension liability and contribution for
each participating agency. This calculation is utilized by the agency to budget for and make
contributions to CALPERS toward its unfunded liability balance. In 2015, EMWD recorded a
loss on its balance sheet for $103.3 million liability per GASB 68. The District net pension
liability is reported as $117.2 million, a difference of the total pension liability of $386.3 and the
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plan fiduciary net position of $269.2 million. For the measurement period ending June 30,
2016, the District recognized a pension expense of $11.6 million toward the pension services
plan. Final accounting occurs after the end of each pension year based upon deferred outflows
and inflow of revenues and payments and credits. The 2016-17 CAFR contains a detailed
description of the calculation of benefit and unfunded liability.
The District also provides post-employment health care benefits to all qualified employees who
meet the District’s CALPERS plan requirements. The District’s contribution varies based upon
the date of hire in one of three tiers and length of service upon separation or retirement. In
2012, the District established an OPEB Trust to manage the plan. The District’s total
contribution in FY 2017 was $17.6 million. A complete explanation of the OPEB status is
detailed in the 2016-17 CAFR.
Status and Opportunities for Shared Facilities/Services
EMWD is a water and sewer district and agency member of the MET that serves a diverse
area and with multiple types of retail water and sewer customers. EMWD has undertaken a
number of shared service opportunities with other agencies, including:
• EMWD cooperates with the primary water provider, MET as well as Western MWD,
Elsinore Valley WD, and Rancho California WD with supply and intertie connections to
share water in emergency situations.
• EMWD participates in a Joint Powers Authority (JPA) with four other agencies as the
Santa Ana Watershed Project Authority (SAWPA) since 1984. The District has one
representative on the five-member Commission that governs the Authority.
• EMWD is a member of the Lake Elsinore San Jacinto Water Authority (LESJWA) that
manages water flows and use in the Lake Elsinore watershed.
• EMWD contracts with private companies to supplement or substitute for services based
upon demand and efficiencies. Examples are engineering services such as plan
checking; inspection services for developer projects; Information Services support;
assistance with installation of Advanced Metering Infrastructure technology to reduce
time and staffing; on-call general pipeline construction services for heavy workload
periods.
• Member of the working group for the West San Jacinto Groundwater Basin
Management Plan (WSJ Management Plan) developed in 1995. Developed
implementing agreements with LHMWD and native tribe.
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Government Structure and Accountability
EMWD is governed by board of directors with five members elected by division for four-year
terms.
Table 45 – Eastern Municipal Water District Board of Directors
EMWD Board Member Term Expires
Philip E. Paule, Div. 1 2023
Stephen J. Corona, Div. 2 2023
Randy A. Record, Div, 3 2021
Ronald W. Sullivan, President, Div. 4 2021
David J. Slawson, Div. 5 2023
The Board of Directors meets the first and third Wednesdays of each month at 9:00 a.m. at the
District Office located at 2270 Trumble Road, Perris, CA 92570. The Board of Directors
appoints a General Manager as the Chief Administrative Officer who is responsible for
managing District operations on a day-to-day basis, and select, appoint and manage staff and
consultants to carry out District programs and projects. The Board also appoints a Legal
Counsel and Treasurer.
The District provides public information on its website, including information on a history of the
District, current projects, water and sewer information, customer inquiries and FAQ’s,
conservation programs, annual budgets, and audits (CAFR). The website also includes contact
information for the Board of Directors and staff and Board meeting agendas and minutes.
Other major reports are accessible via links on the portal at www.emwd.org. A contact portal is
also provided to further research District reports and studies.
The District staff state that they work cooperatively with several other water agencies and
cities in the County and region. Based upon water rights and infrastructure resources, there
does not appear to be increased interest in considering alternative government service
structures at this time. Additionally, District staff is aware of and provided information on a
request by the City of Murrieta to Riverside LAFCO to conduct a study of water services to the
Commercial Area of the City, including participation by the area water agencies including
EMWD, City of Murrieta, Western Municipal Water District and Rancho California Water
District. EMWD has agreed to participate in the focused study process.
The District also is aware of at least eight possible annexations totaling 2,904 acres of
residential and commercial uses that could be considered in the near future based upon the
property owner’s desire to proceed with development. No definitive dates for possible action
on these projects have been identified.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
The Edgemont Community Services District (ECSD) was formed on March 25, 1957 in
accordance with the State of California Community Services District Law (Government Code
§61000 et seq.). The District is responsible for providing sewer and street lighting services.
Located within a portion of the City of Riverside and a portion of the City of Moreno Valley,
ECSD encompasses approximately 1,500 acres (2.34 square miles). The District is primarily
south of I-60 Freeway and bisected by the I-215 Freeway. According to the District, it does not
provide any services outside of its service boundary. ECSD’s sphere of influence is
coterminous with its current service boundary. The Eastern Municipal Water District and the
Western Municipal Water District overlap portions of the ECSD.
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Exhibit 9 – Edgemont Community Services District
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Edgemont Community Services District - Agency Profile
General Information
Agency Type Community Services District Act Gov. Code 61000 et seq.
Date Formed March 25, 1957
Services Wastewater collection and treatment, street lighting
Service Area
Location Located within a portion of the City of Riverside and a portion of the City of Moreno Valley
Square Miles/Acres 1,500 acres
Total Water/Sewer Connections Sewer connections: 1,300
Population Served 8,670
Sewer Infrastructure
Facilities 17 miles of sewer collection pipelines
Current and Projected Treatment District owns 0.89 MGD capacity rights at the Riverside Water Quality Control Plant
Capacity
Primary Disposal Method Treated at the Riverside Water Quality Control Plant and reused for irrigation purposes or
discharged to the Santa Ana River
Sewer Rates (single-family home) Fixed Annual EDU Rate of $141.00
Budget Information - FY 2017-2018 (Sewer Funds)
Revenues Expenditures Net Surplus/(Deficit)
Government Fund $1,338,834 $1,112,968 $225,866
Sewer Fund $1,224,966 $997,460 $227,506
Combined Funds $2,563,800 $2,110,428 $453,372
Capital Expenditures FY 2017-2018 Long Term Planned Expenditures:
$0 2006 Master Plan – Projects being re-evaluated
Government Fund Balance $744,803
District recently changed auditors and is revising its accounts and
Sewer Fund Balance/Reserves $5,423,855
budget structures
Agency Net Position $17,758,891
Governance
Governing Body 5-member Board of Directors, elected at-large
Agency Contact Jessica Pfalmer, 951-784-2632, jessicaecsd@yahoo.com
Board meets fourth Thursday each month at 7:00 p.m. at 21640 Cottonwood Avenue, Moreno Valley, CA 92553
Sources: ECSD questionnaire; ECSD Sewer Master Plan; Riverside LAFCO website; 2016-17 Audit
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Growth and Population Projections
ECSD currently provides sewage collection services for approximately 8,670 residents and
serves portions of the City of Riverside and Moreno Valley. The District’s service area is
generally built-out, and no significant increase in population is anticipated in the foreseeable
future.
Disadvantaged Unincorporated Communities
Riverside LAFCO has determined that there are no DUCs contiguous to the Edgemont
Community Services District, so no additional analysis is required in this report.
Present and Planned Capacity of Public Facilities
Edgemont Community Services District has nearly 17 miles of gravity sewer pipelines within its
service area and 1,054 lateral connections. There are no sewer pump stations within the District,
and the District does not own a wastewater treatment plant. The District’s infrastructure includes
sewer mainlines that were installed and/or replaced over the last 60 years. The current system
consists of pipes installed in the following proportions: 32 percent between 1958 and 1960; 29
percent between 1961 and 1970; 4 percent between 1971 and 1980; 7 percent between 1981
and 1990, 11 percent between 1991 and 2000; 2 percent between 2001 and 2010; 13 percent
between 2011 and 2018; and 2 percent of undetermined age.
Although some pipe materials deteriorate substantially over time, vitrified clay pipe (VCP) is
used for all of the District’s system, which has a useful life of over 100 years. VCP can be
susceptible to crushing and root intrusion; however, the District has recently completed a video
of all the system’s mainlines which indicates the system is in “good” to “excellent” condition.
The videos are currently under further review by the District Engineer.
On October 1, 2014, a sewer spill of 2,700 gallons occurred on Farragut Avenue in Moreno
Valley. According to the District’s Sewer System Management Plan (2016), this is the only spill
that has occurred in the last ten years from the District’s sewer system.
All wastewater produced within the District’s service area is treated at the Riverside Regional
Water Quality Control Plant (RRWQCP) via existing connections located at the Canyon
Springs Shopping Center near the north boundary of ECSD, south of I-60 Freeway west of
Day Street, and on Cottonwood Avenue west of the I-215 Freeway. The RRWQCP is operated
and maintained by the City of Riverside Public Works Department. Edgemont CSD currently
collects and conveys approximately 0.5 MGD of wastewater to the RRWQCP (based on daily
average delivery during 2014-2015), where it is treated to tertiary standards before being
discharged to the Santa Ana River. According to the City of Riverside’s CIP Update and Rate
Development Study (2014), projected flows from Edgemont CSD to the RRWQCP are
projected to increase to 0.89 MGD by 2032. Edgemont CSD’s project ultimate wastewater flow
is 1.05 MGD based upon the City of Moreno General Plan (2008).
The RRWQCP recently completed a plant-wide expansion increasing the treatment capacity
from 40 MGD to 46 MGD. The plant expansion incorporated new technologies designed to
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produce high-quality effluent water that can be reused throughout the region. RRWQCP is
projected to have sufficient treatment capacity to treat Edgemont flows for the foreseeable
future.
Emergency Preparedness (Supply Interruption Capability)
The District has developed a SSMP for sewer operations that includes appropriate personnel
listings, resource inventories, locations for emergency operations centers, response
procedures, and the steps necessary to resume normal operations.
Financial Ability to Provide Services
As of June 30, 2017, the District was able to report a positive balance in its unrestricted net
position of $6,168,658. On June 30, 2016, the balance was $5,851,400. This is an increase of
$317,258. The net position of the District, the value of assets and funds on hand for operations
and capital investment, over the same period increased $453,372 or approximately 4 percent
during the prior year and with slightly less revenues.
The District has developed and implemented an adequate reserve for capital needs including
purchase of capacity in the City of Riverside WWTF if needed. ECSD maintains a consistent
investment in infrastructure including rehabilitation of pipes over the past five years. The
District does not have a recent CIP but evaluates replacement needs on an annual basis and
has set aside reserves for capital replacement of over $5 million. A comparison of three years’
financial statistics from the published Comprehensive Audited Financial Reports is provided
below for review.
Table 46 – ECSD Financial Statements, FY 2015-FY 2017
FY 2015 FY 2016 FY 2017
Operating Revenues
Charges for services $ 293,949 $ 693,714 $ 313,511
Total operating revenue $ 293,949 $ 693,714 $ 313,511
Operating (Expenses
Illumination $ -46,275 $ -52,267 $ -69,883
Sewer $ -873,939 $ -1,167,068 $ -997,460
Non-Operating Revenues (Expenses)
Property taxes $ 662,621 $ 670,549 $ 716,529
Interest and investment earnings 18,371 26,313 45,473
Rental revenue 559,800 559,800 587,788
Total non-operating revenues (exp enses), net $ 1,240,792 $ 1,256,662 $ 1,349,790
Net income (loss) before capital contributions $ 614,527 $ 731,041 $ 453,372
Capital Contributions
None $ 0 $ 0 $ 0
Change in Net Position
Beginning of year $ 10,959,951 $ 11,574,478 $ 12,305,519
Fund Balance/Reserve unrestricted $ – $ – $ 5,423,855
Net position – end of year $ 11,574,478 $ 12,305,519 $ 12,758,891
Sources: Comprehensive Annual Financial Reports 2015, 2016, 2017
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ECSD operates its sewer service as an enterprise fund and its illumination (street lighting)
service as a government fund, which is consistent with other local agencies providing street
lighting services, within the confines of overall District operations. Sewer service charges
comprise the majority of operating revenues that fund the services provided for sewer
operations, treatment at the City of Riverside WWTF and administration. On average, the
ECSD receives 43 percent of its revenues from property taxes.
Overall, the District sewer and illumination funds are considered stable and self-sustaining for
operational, capital and debt service activities, although some cyclical spending has occurred
periodically due to fluctuations in costs of the City of Riverside treatment contract. According to
the District, a sewer rate increase was implemented on July 1, 2018 due primarily to increased
cost of treatment. The District maintains a substantial reserve fund balance in several
established funds providing good capability to absorb short term impacts, and is able to
maintain a very good debt service to annual expenditure ratio (currently over 5.0).
There are seven primary areas, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water service operations and ability to fund
needed capital projects.
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratios of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
1. 3 Year Revenue/Expenditure Budget Trends
The sewer fund overall has been experiencing positive cash flows as well as occasional
reduced spending over the last several years. However, this is attributed primarily to annual
adjustments in the City of Riverside treatment charges, setting aside reserves for capital
expenditure funds and cash flows. A sewer rate increase was implemented as of July 1, 2018
to help offset increased treatment costs.
2. Ratios of Revenue Sources
The District receives 19 percent of its sewer fund revenues from charges and fees for services,
substantial revenue from property taxes (43 percent), and about 38 percent from
miscellaneous other sources. The ratio of unrestricted reserves for the sewer fund reflects an
appropriate balance for typical enterprise fund services. This minimizes the impact that
negative economic factors might have on more elastic revenues such as property tax (property
tax has varied based upon the economic picture over the past ten years and improved in the
past three years).
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3. Ratio of Reserves or Fund Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted cash reserve or fund balance the service fund
maintains in relation to the annual fund expenditures. The District’s fund balance ratio is
approximately 510 percent of annual expenditures. This fund ratio represents a positive ratio
position, and the reserve has been increased over time.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the
District’s ability to meet debt obligations in relation to service provision expenditures. Ideally, a
ratio of ten percent or less would reflect a very stable ratio. The District’s sewer fund has low
amount of debt, including only a loan from the City of Riverside to pay for an upgrade at the
WWTF. This loan will be paid off in 2019. The District’s annual debt service ratio to total
expenditures is less than one percent, an extremely good ratio.
5. Rate Structures
The District’s current sewer rates are $141 per year per EDU. This rate was implemented as of
July 1, 2018.
6. Capital Improvement Plan/Program
The District has an active Capital Improvement Program/Plan exhibited by their letters
included in the Sewer System Management Plan prepared in 2011 and based upon funding
and timing of replacements. Since the preparation of the Master Sewer System Evaluation
Plan in September 2008, the District had replaced over 10,500 feet of sewer lines and
additional lines in 2013-14.
7. Pension and Other Post- Employee Benefit Liability
The District pays for benefits for the minimal staff on an annual pay/go basis and reports no
pension or OPEB Liabilities.
Status and Opportunities for Shared Services/Facilities
The District contracts for the following services:
• Legal Counsel - all legal needs of the District, including preparation of ordinances and
resolutions, except litigation services.
• Engineering - all engineering and construction management services on an hourly
basis. By contracting for engineering services, the District has the equivalent of full-time
staffing at any given time, as needed, but substantially less hours when services are
not needed; additionally, the District has access to the necessary level of expertise for
each project or assignment, allowing for high level engineering expertise when needed
and cost savings on lower level engineering needs.
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• On-Call Plumber – contract plumber checks manhole locations, as requested, and
responds to customer backup concerns by checking flow in lines and clearing laterals
that are the District’s responsibility within one hour of request.
• Sewage Treatment – as previously stated, the District owns capacity rights in the
Riverside Water Quality Control Plant in order to have its wastewater processed in the
regional plant. The District is billed on a monthly basis for all of the sewage flowing into
the City of Riverside’s sewage system. The City of Riverside also provides pretreatment
inspection services, pursuant to a contract with the District, to assure that the District’s
commercial customers are in compliance with the District’s requirements.
Government Structure and Accountability
ECSD is governed by a five-member Board of Directors, elected at large.
Table 47 – Edgemont Community Services District Board of Directors
Board Member Term Expires
Michael Addie 2022
Cheryl Franklin 2020
Brenda Addie 2022
Crystal Smith 2020
Eric Stephens 2022
The ECSD Board meets at 7:00 p.m. on the fourth Thursday of each month at the Edgemont
Community Center located at 21640 Cottonwood Avenue, Moreno Valley. The District has a
basic website which lists meeting dates, Board agendas, agency contact information for the
General Manager, etc.
No direct contact information is listed for Board members, and no meeting minutes are
provided. In addition, there is no agency audit and/or budget information accessible form the
District’s website. At minimum, meeting minutes, annual budgets and current audits are
needed to promote transparency and accountability as well as allowing public oversight of
District activities. The California Special Districts Association (CSDA) offers member agencies
special programs and assistance with website startup and design. The District should consider
this or other options to upgrade its website.
ECSD provides wastewater collection services to an area of approximately 1,504 acres but
contracts with the City of Riverside to provide wastewater treatment and disposal services.
The CSD’s service area is partially built-out, and some of the sewers are 60 years old.
However, the sewer mainlines are made of vitrified clay and, according to recent District
videos, are considered in good to excellent condition. District rates ($141 per EDU annually)
are significantly lower that sewer rates charged by the City of Riverside. LAFCO’s 2005 MSR
stated that there may be cost savings associated with a reorganization of ECSD with the City
of Riverside, although because ECSD boundaries are evenly split between the City of
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Riverside and the City of Moreno Valley, such reorganization would present challenges. No
alternative government structure options are considered at this time.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
Elsinore Valley Municipal Water District (EVMWD) was incorporated on December 23, 1950,
under the provisions of the California Municipal Water District Act of 1911. The purpose of
EVMWD is to provide water and wastewater services to properties within EVMWD’s
boundaries. At the time of its incorporation, EVMWD had too low of an assessed valuation to
become a member of the Metropolitan Water District of Southern California (Metropolitan),
which was formed in 1928 by a legislative act to provide supplemental water for its member
agencies in Southern California. Western Municipal Water District (WMWD) was formed in
1954 under the Municipal Water District Act of 1911 to bring supplemental water from
Metropolitan to growing western Riverside County. Following WMWD’s annexation to
Metropolitan, EVMWD was annexed to WMWD’s service area in 1954.
A bond election was held in 1955 that provided $1,600,000 in capital funding for transmission,
storage, treatment, and limited distribution facilities for the importation and distribution of
Metropolitan water within EVMWD. During 1956 and 1957, construction proceeded on the
EVMWD loop transmission system. Also during this period, several small mutual water
companies petitioned EVMWD to accept their physical facilities and operate them. The first
delivery of Metropolitan water started on April 8, 1957. EVMWD was a wholesaler to the
Elsinore Water District (EWD), which was located northwest of Lake Elsinore and entirely
surrounded by EVMWD’s service area.
In 2011, EWD and all their facilities, which are located northwest and southeast of Lake
Elsinore, merged with EVMWD. Today, the residents within the EVMWD boundary are served
by one of two water service agencies: EVMWD, and The Farm Mutual Water Company. The
Farm Mutual Water Company is located entirely within EVMWD boundaries, and obtains most
of their water wholesale from EVMWD. EVMWD also provides wastewater and recycled water
service to customers. EVMWD is legally empowered, but does not currently provide services
for storm water disposal facilities, and fire protection facilities.
The EVMWD service area is composed of the Cities of Lake Elsinore, portions of Canyon
Lake, Wildomar, and portions of the City of Murrieta and unincorporated Riverside County and
Orange County. EVMWD’s service area is divided into two divisions: the Elsinore Division and
the Temescal Division.
The Elsinore Division makes up the majority of the service area with approximately 44,000
accounts, encompassing an area of 96 square miles. The Temescal Division is isolated from
the Elsinore Division and is located to the northwest of the Elsinore Division. It covers an area
of approximately 2.5 square miles and has approximately 700 accounts. Although EWD was
consolidated with EVMWD, the EVMWD service area has remained the same because EWD’s
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service area was wholly within EVMWD’s service area, and its population and water use were
included in the previous UWMP calculations since EWD received all their water from EVMWD.
EVMWD serves water through 44,600 connections and sewer through 35,510 connections to
approximately 158,000 customers. EVMWD’s service territory overlaps with the Western
Municipal Water District.
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Exhibit 10 – Elsinore Valley Municipal Water District
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Elsinore Valley Municipal Water District - Agency Profile
General Information
Agency Type Municipal Water District Act of 1911; section 71000 Water Code
Date Formed December 23, 1950
Services Retail Water District-wide; Wholesale Water to Farm Mutual Water Co., Sewer to major
portions of District and Recycled Water to four areas
Service Area
Location Western county covering cities of Lake Elsinore, Canyon Lake and Wildomar; small area in
Orange County
Square Miles/Acres 97 sq. miles/63,000 acres
Total Water/Sewer Connections Water: 44,600 (93% Residential)
Sewer: 35,510
Population Served 158,000 (estimated using EVMWD connection data)
Water Infrastructure
Facilities Canyon Lake WTP, Back Basin WTP, 737 miles pipeline, 55 booster stations, 72
reservoirs; 12 wells
Storage Capacity 90 MG; 8,960 AF in Canyon Lake
Primary Source of Supply Groundwater (21%) in Elsinore, Bedford and Coldwater Basin; Surface Water (11%) and
Imported Water Purchased (68%) from MWD.
Water Rates (single-family home) 4 Tier rates Residential $2.29 – 7.48 HCF; Irrigation $2.87 – 8.08 HCF Monthly Service
Charge – ¾ inch meter $23.37; Power Zone Charge $0.12 HCF (Zone 1)
Sewer Infrastructure
Facilities 418 miles Collection system & 37 Lift Pump Stations; 3 WRFs and JPA member of SRRRA
for Santa Rosa WRF
Current and Projected Treatment 9.7 MGD in three WRFs and 2.0 MGD in SRRRA’s Santa Rosa WRF; in process of
Capacity expanding one WRF by additional 4.0 MGD; all WRFs are tertiary treatment so water
reclaimed or discharged to lake
Primary Disposal Method Discharged to Lake Elsinore and stream discharge per agreements; Landscape Irrigation
Sewer Rates (single-family home) Residential - $45.87/month
Actual Information - FY 2017 (Water & Sewer Funds)*
Revenues Expenditures Net Surplus/(Deficit)
All funds combined $77,614,089 $80,146,492 $-2,532,403
Other income – – $24,350,755
Change in net position – – $21,818,352
Capital Expenditures FY 2017 Long-Term Planned Expenditures
$24 million $29.9 million in water facilities 2 WRFs expansion;
well conversions (non-potable to potable)
Agency Net Position $613,008,355
Governance
Governing Body Five member Board elected by division; Board meets at offices at 31315 Chancy Street,
Lake Elsinore, CA 92531-3000
Agency Contact Margie Armstrong, 951-674-3146, ext. 8306 margie@evmwd.net
Sources: UWMP 2015, Water MP 2016, Sewer MP 2015, 2017 CAFR, questionnaire response *
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Growth and Population Projections
As part of an Urban Water Management Plan Update completed in 2016, EVMWD developed
population and growth projections. The current and estimated future service population for
EVMWD is shown in Table 48.
Table 48 – EVMWD Population Projections, 2015-2040
2015 2020 2025 2030 2035 2040
149,300 169,500 187,800 205,100 221,100 238,300
Source: UWMP (2015)
Between 2015 and 2040, the District’s service population is expected to increase in service
population by approximately 24,600 connections or 89,000 residents. The majority of this
growth is expected to be in the four cities and the suburban communities within the District’s
service area.
Disadvantaged Unincorporated Communities (DUCs)
There are two DUCs with the EVMWD boundary: Warm Springs and Lakeland Village; there
are two DUCs within the EVMWD sphere of influence: the El Cariso and Meadowbrook areas.
They are briefly outlined below:
1) Warm Springs is a DUC within the District; water and wastewater services are
provided by EVMWD; stormwater by the Riverside County Flood Control District;
fire protection by the Riverside County Fire Department. No deficiencies were
identified.
2) Lakeland Village is a DUC within the District; water and wastewater services are
provided by EVMWD; stormwater by the Riverside County Flood Control District;
fire protection by the Riverside County Fire Department. No deficiencies were
identified.
3) The El Cariso area DUC is located on the southwestern edge of the County near
SR 74, about ten miles west of Lake Elsinore. Water and wastewater are served by
EVMWD; stormwater needs are unmapped and unknown; fire protection is provided
by the Riverside County Fire Department.
4) The Meadowbrook area DUC is located near SR 74 near the northwestern edge of
Lake Elsinore. Water and wastewater are served by the EVMWD; stormwater needs
are provided by the Riverside County Flood Control District (no major facilities have
been constructed recently), and fire projection is provided by the Riverside County
Fire Department.
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Present and Planned Capacity of Public Facilities
EVMWD utilizes water supplies from three primary sources for drinking water supply: Imported
water via WMWD, groundwater wells and surface or lake water from Canyon Lake Reservoir
when it is available.
1. Imported Water (Purchased)
EVMWD purchases imported water from MET via the WMWD. Purchases may be higher
during drought conditions or when the Canyon Lake Reservoir water levels are low. The
District purchases range between 13,000 and 19,000 acre-feet/year. There are two sources of
imported treated water: 1) MET’s Skinner Filtration Plant via the Auld Valley Pipeline (AVP)
with capacity to deliver up to 24.2 MGD or 16,256 acre-feet/year, unless system upgrades are
made, or 2) through the Temescal Valley Pipeline (TVP) from the Mills Filtration Plant. The
connection point is within the City of Corona and the annual capacity to deliver is 12.9 MGD or
10,030 acre-feet/year. The District has studied alternatives to increase the capacity of these
pipelines in the future to accommodate expected growth.
2. Groundwater
EVMWD draws on average approximately 21 percent of its water supply from two groundwater
basins that serve different areas of the District. EVMWD has approximately 12 operating wells.
The Elsinore Basin is the major source of groundwater supply in the Glen Ivy Fault area and
the Wildomar Fault Zone to the southeast. The basin encompasses about 25 square miles and
includes Lake Elsinore and its tributaries.
The Coldwater Basin is in the Temescal Valley and serves the separated areas with about 500
connections. The basin covers about 2.6 square miles with a capacity of 74,800 acre-feet if
full. EVMWD pumps on average between 400 to 700 acre-feet/year and other pumpers use
about 2,200 acre-feet/year.
EVMWD acquired the Temescal Water Company in August 1989, and this resulted in
ownership of water rights in the Meeks and Daley water rights in Grand Terrace and in the
Riverside Basin. EVMWD may take delivery of up to 6,428 acre-feet/year but lacks
infrastructure to access the water supply. EVMWD and WMWD have entered into an
Exchange Agreement whereby WMWD takes the water, and EVMWD utilizes capacity in the
Mills Gravity Line.
Table 49 – EVMWD Groundwater Production, 2014-2018
2014 2015 2016 2017 2018
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
8,278 9,104 4,690 4,969 4,116
Source: EVMWD FY 2018 CAFR
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3. Surface Water
When available, the District utilizes water from Canyon Lake (Railroad Canyon) Reservoir, a
8,960 acre-foot lake with estimated usable capacity of 4,600 AF. The District purchased the
reservoir and upstream lands with water rights from the Temescal Water Company in 1989.
The District has averaged 2,251 acre-feet/year of treatment of water from the lake at the
Canyon Lake Water Treatment Plant
Water Demand Projections
The UWMP Act requires a water retailer to quantify the minimum water supply available during
the years 2016 to 2018, assuming years 2016 to 2018 repeated the driest three-year historic
sequence for each water supply source. EVMWD’s estimated minimum supplies are shown in
Table 50 below. These supplies are based on the anticipated reliability of imported water from
Western Municipal Water District, local surface water, and local groundwater.
Table 50 – EVMWD - Minimum Supplies, 2016-2018
2016 2017 2018
(acre-feet) (acre-feet) (acre-feet)
34,918 36,523 38,023
Source: UWMP Update (2015)
Supply and Demand Assessment
Historically, there is often an increase in water use among agencies similar to EVMWD due to
increased development. Conservation efforts have proven to be effective in decreasing water
use in most dry years. Additionally, the District has enacted a Water Shortage Stages and
Water Budget Reductions Plan that includes increased levels of conservation and rate
increases for certain uses. In the District’s recent UWMP 2015 Update, EVMWD estimated
that demands could increase five to ten percent during a single dry year due to some area
property owners experiencing local supply reductions. However, during an extended multiple
dry year period, it is expected that conservation messaging and restrictions would lead to
consumption dropping back down to normal year levels in the second dry year, and falling a
further ten percent in the third dry year.
The following tables summarize the anticipated supplies and demands for a Normal or Single
dry year based upon growth forecasts for EVMWD.
Table 51 – EVMWD Normal Year Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 40,052 52,396 52,971 61,246 61,476
Demand Totals 36,205 40,605 45,005 49,205 53,605
Difference 7,847 11,791 7,966 12,041 7,871
Source: UWMP Update (2015)
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Table 52 – EVMWD Single Dry Year Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 41,170 49,514 50,089 58,079 58,309
Demand Totals 36,205 40,605 45,005 49,205 53,605
Difference 4,965 8,909 5,084 8,874 4,704
Source: UWMP Update (2015)
Wastewater (Water Reclamation)
EVMWD is a wastewater treatment agency that operates three wastewater reclamation
facilities: the Regional WRF, Horsethief Canyon WRF and Railroad Canyon WRF. Additional
flows from the southern part of the service area flow to the Santa Rosa WRF, owned by Santa
Rosa Regional Resources Authority (SRRRA). SRRRA is a JPA comprised of three member
agencies which include WMWD, EVMWD and RCWD. SRRRA facilities, including the Santa
Rosa WRF, are operated by RCWD. The Santa Rosa WRF is in the midst of undergoing a
rehabilitation project which will also expand the capability of the facility to treat sewer and
produce recycled water.
Currently almost all (90 percent) wastewater flow within the EVMWD service area is treated by
District facilities (10 percent goes to SRRRA facility). All wastewater flows are used as some
sort of recycled water source, whether it is delivered to customers as a non-potable supply or
used as replenishment water for Lake Elsinore. The EVMWD recycled water service area is
comprised of four hydraulically separate service areas: the Horsethief, Railroad Canyon,
Regional, and Wildomar service areas. Each respective service area is served by the following
sources.
• Wildomar service area is served by the Eastern Municipal Water District’s (EMWD) 48-
inch Temecula Valley Recycled Water Pipeline (TVRWP) from the Temecula Valley
Water Reclamation Facility (TVWRF).
• Railroad Canyon is served by the Railroad Canyon Water Reclamation Facility (WRF)
and recycled water purchased from EMWD.
• The Horsethief service area is served by the Horsethief WRF.
• Regional WRF provides replenishment water for Lake Elsinore.
In total, EVMWD has 418 miles of collection pipelines, 37 lift pump stations and treatment
capacity totaling 9.7 MGD plus 2.0 MGD at SRRRA’s Santa Rosa WRF.
EVMWD, EMWD, and RCWD entered a five-year agreement in March 2009, (which was
extended for another five years in 2014) to coordinate use of recycled water supplies in the
region and to establish wholesale recycled water prices for EVMWD and RCWD. This
agreement establishes EVMWD’s recycled water availability and uses. EVMWD does not own
or operate any WRFs in the Southern Sewer area and wastewater generated from this area is
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conveyed to four connection points in SRRRA’s system and conveyed to SRRRA’s Santa
Rosa WRF for treatment.
According to the agreement, in return for paying RCWD to treat the wastewater sent to the
Santa Rosa WRF to tertiary standards, EVMWD is allocated an equal amount of recycled
water from EMWD’s 48-inch TVRWP at no additional cost. EVMWD’s recycled water allocation
for each year is adjusted at the beginning of the fiscal year and is dependent upon the amount
of wastewater delivered to the Santa Rosa Water Reclamation Facility (SRWRF). From 2011
to 2015, EVMWD averaged about 0.8 MGD of wastewater flow to the Santa Rosa WRF.
In addition, EVMWD has an agreement with Eastern MWD to purchase excess recycled water
to provide to current recycled water customers. Under this agreement, EVMWD can purchase
329 acre-feet per year of surplus. The SRWRF produced 991 AF of recycled water in 2018, of
which 288 AF was utilized by EVMWD for retail recycled water demands within the District’s
service area.
Wastewater Collection and Treatment
EVMWD is a wastewater treatment agency that operates three wastewater reclamation
facilities: Regional WRF, Horsethief Canyon WRF and Railroad Canyon WRF. EVMWD
additionally has flows in the southern part of the service area that are treated at the Santa
Rosa WRF, owned by SRRRA and operated by RCWD.
Currently, most of the wastewater flow (90 percent) within the EVMWD service area is treated
by District facilities (10 percent goes to SRRRA facility) to tertiary quality and is used as a non-
potable supply or used as lake replenishment water by release in one of several creeks. Each
sewer area is served by the following facilities.
• Railroad Canyon is served by the Railroad Canyon Water Reclamation Facility (WRF) -
current flows at 0.7 MGD
• The Horsethief service area is served by the Horsethief WRF - current flows at 0.3
MGD
• The majority of the District’s sewer flow is served by Regional WRF – current flows at
6.0 MGD
• The southern portion of the District is served by SRRRA JPA’s Santa Rosa WRF
operated by RCWD - current flows at 0.7 MGD
In total, EVMWD has 418 miles of collection pipelines, 37 lift pump stations and treatment
capacity totaling on average 9.7 MGD plus 2.0 MGD at SRRRA’s Santa Rosa WRF.
Emergency Preparedness (Supply Interruption Capability)
Extended water supply shortages or outages are possible due to natural disasters or accidents
which could compromise or interrupt all water sources. One such event would be a major
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earthquake. The District has developed an Emergency Water Supply Response Plan that will
be activated, as needed, during isolated or system-wide water supply interruptions.
EVMWD’s preferred emergency plan is to import water via its water supply connections with
EMWD and WMWD, the Canyon Lake WTP, and production from select well sites. Power
outages can be mitigated at most water production facilities through the use of permanent
stationary or portable generators. Under most foreseeable conditions, there will be sufficient
water to meet the minimum health and safety requirements of 50 gallons per day per capita for
approximately 160,000 residents. This assumes cooperative demand curtailments by
customers, adequate water supply in Canyon Lake, and underground well infrastructure
remaining intact and operable.
Under emergency power outages or a catastrophic earthquake condition, the existing storage
is expected to provide a supply at minimum demand levels. EVMWD also has interconnections
with WMWD and EMWD for emergency supplies. All wastewater facilities are required to have
emergency power capability for reliability. Main lift pump stations also have emergency power
or the capability for portable generators to be connected.
Financial Ability to Provide Services
As of June 30, 2017, the District reported an unrestricted fund balance of $147,165,000, an
increase of $6,354,000 over the prior year. The net position of the District, the value of assets
and funds on hand for operations and capital investment was reported as $613,009,000, an
increase of $21,819,000 or about four percent from the prior year.
EVMWD operates its water and sewer services as enterprise funds within the parameters of
overall district operations. Water sales and service charges comprise the significant majority of
operating revenues that fund the services provided for water operations and administration.
The same situation exists for the sewer operations. On average, the EVMWD receives
approximately 12 percent of its revenues from property and related taxes. The District utilizes
these funds for wastewater operations, capital improvements and debt service for new facilities
on an as needed basis.
Overall, the District’s water, sewer and CIP funds are considered stable and self-sustaining for
operational, capital and debt service activities. Rate increases had been implemented over the
last several years to accommodate increased expenditures for maintenance and capital
improvements.
The District has adopted a comprehensive Cash Reserve Policy that designates funds for
various programs and long-term debts. The policy provides direction to District staff on
addressing reserves in the annual budget process. Reserves are established in various
categories and uses.
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• Rate Stabilization Reserve – Funds to ensure that adequate cash flow is available in
the event of extraordinary expenses or reduction in revenues
• Debt Reserve – To fund payment of principal and interest for debt financed facilities as
required by individual debt obligation
• Capital Facilities Reserve – For payment of costs for new facilities required for future
and planned services
• Capital Replacement Reserve – Funds to replace aging facilities as planned in the
Water and Wastewater Master Plans
• Employee Benefit Reserve - For payment of accrued and unpaid employee sick and
vacation benefit liabilities
The above reserves include various operating and emergency accounts to provide funding for
rate stabilization, operating reserves and capital assets.
A comparison of three years financial statistics from the published Comprehensive Audited
Financial Reports is provided below.
Table 53 – EVMWD Financial Statements, FY 2015-FY 2017
FY 2015 FY 2016 FY 2017
Operating Revenues
Water revenues $ 44,456,826 $ 46,387,145 $ 44,164,018
Wastewater revenues 23,368,664 21,961,717 22,261,812
Recycled water revenues – 939,750 1,036,047
Total operating revenue $ 67,825,490 $ 69,288,612 $ 67,461,877
Operating Expenses
Water purchases $ 16,306,497 $ 15,452,140 $ 16,266,623
Water operations 14,660,805 15,165,860 16,047,064
Wastewater opera tions 13,460,542 11,876,091 11,250,489
Recycled water operations – 1,340,151 976,330
General and administrative 10,675,786 10,246,633 10,561,347
Depreciation/amortization 19,520,795 19,626,434 19,894,657
Total operating expenses $ 74,624,425 $ 73,707,309 $ 74,996,510
Operating income (loss) $ -6,798,935 $ -4,418,697 $ -7,534,633
Non-Operating Revenues ( Expenses)
Property taxes (total) $ 8,239,146 $ 8,510,208 $ 9,133,430
Standby charges 913,699 433,830 595,492
Investment earnings 1,610,326 2,453,021 126,582
Mutual Water Company -3,499 -85,372 -67,504
Lease income 1,445,901 1,453,542 1,520,603
Other income 1,417,250 1,019,731 -1,156,661
Interest expense -7,379,384 -6,561,178 -3,552,038
Other expenses -1,845,509 2,166,692 -1,597,944
Total non-operating revenue (net) $ 4,397,930 $ 5,304,053 $ 5,002,230
Net income (loss) before capital contributions $ -2,041,005 $ 885,356 $ -2,532,403
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FY 2015 FY 2016 FY 2017
Capital Contributions
Capacity fees $ 6,443,375 $ 10,061,797 $ 14,682,746
Capital grants 286,910 817,868 6,906,333
Other contribu tions 1,726,371 3,037,047 2,761,676
Total capital contributions $ 8,446,656 $ 13,916,712 $ 24,350,755
Change in net position $ 6,045,651 $ 14,802,068 $ 21,818,352
Net Position
Beginning of year $ 570,342,284 $ 576,387,935 $ 591,190,003
Net position - end of year $ 576,387,935 $ 591,190,003 $ 613,008,355
Source: Comprehensive Annual Financial Reports 2015, 2016, 2017
There are seven primary criteria, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratios of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post Improvement Benefits Liability
1. 3 Year Revenue/Expenditure Budget Trends
The District fund overall has been experiencing modest surplus revenues over expenses as
well as occasional increased spending over the last several years. However, this is attributed
primarily to planned capital expenditures and cash flows. Appropriate rate increases have
been implemented for water and sewer over the prior years’ utilizing a cost of service analysis
to have services funded by fees and charges.
2. Ratios of Revenue Sources
The District receives 86 percent of its water and sewer fund revenues from charges and fees
for services, substantial revenue from property taxes (11 percent), and about 4 percent from
miscellaneous other sources. The ratios of designated reserves and funds reflect an
appropriate balance for typical enterprise fund services; this minimizes the impact that
negative economic factors might have on more elastic revenues such as water sales and
property tax (property tax has varied based upon the economic picture over the past ten
years).
3. Ratio of Reserves or Fund Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted or restricted cash reserve or fund balance the service
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fund maintains in relation to the annual fund expenditures. The District’s fund balance ratio is
approximately 183 percent of annual expenditures. This fund ratio represents an adequate
ratio position and the designated reserves have been increasing over time.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the
District’s ability to meet debt obligations in relation to service provision expenditures. The
District has one state low interest loan and has financed several facility systems with
Certificates of Participation (COP) and revenue bonds using water and sewer operating
revenues and capacity fees as revenue sources. Long-term liabilities in debt are $171.2 million
at June 30, 2017 and the payments due in next year are $5.9 million. Ideally, a ratio of 10 to 15
percent or less would reflect a very stable ratio. The District’s water and sewer funds have
reasonable debt, including refinancing of prior debt to reduce long-term expenses and to pay
for needed capital projects over time. The District’s annual debt service ratio to total
expenditures is approximately 8 percent, an acceptable ratio.
5. Rate Structures
The District has raised water rates annually to keep pace with costs of operations and capital
facility replacement. For water services, the District has two divisions based upon method of
service and costs, has different rates for each. The residential water rates use a four-tiered
rate system. The District’s current Elsinore Water Division residential water commodity rates
changed effective July 1, 2018 to range from $.2.34 (indoor use) – $7.48 (excessive use) per
100 cubic feet of usage.
Commercial customers pay a flat rate for their indoor water use of $2.84 per 100 cubic feet of
usage. Potable and recycled landscape irrigation users have a three-tiered rate system.
Potable landscape irrigation user rates range from $2.93 - $8.08 and recycled user rates range
from $2.29 - $4.70 per 100 cubic feet of usage. Water service charges for water meter
availability range from $26.27 – $41.29 for a typical ¾” and 1” size meter.
The Temescal Water Division residential water commodity rates range from $0.76 (Indoor use)
to $5.86 (Excessive use) per 100 cubic feet of usage. Commercial customers pay a flat rate for
their indoor water use of $0.96 per 100 cubic feet of usage. Water meter availability charges
are now the same District-wide. A power charge is also levied based upon elevation of the
user from $0.12 to $1.52 per 100 cubic feet of use.
Sewer fees for the served area effective 7/1/18 for residential is a fixed charge of $ 20.29 per
month plus $6.93 per person in the household. Commercial and other special uses pay by
water consumption based on a rate of $4.15 – $9.29 per 100 cubic feet of usage.
The District has other fees and charges for service and late fees which can be found on the
District website at www.evmwd.net.
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6. Capital Improvement Program/Plan
The District reports that it has developed and implemented a comprehensive CIP for water,
recycled and sewer infrastructure improvements. The District’s current 2-Year CIP reflects
approximately $29.3 million in improvements for water and wastewater infrastructure, with
approximately $13 million programmed for FY 2018. This does not include grants and loans
that may be obtained. EVMWD maintains a consistent investment in infrastructure including
wells, pipelines, reservoirs and sewer systems. This reflects an ongoing investment in capital
facilities.
7. Pension Liability and Other Post-Employment Benefits Liability
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and
death benefits to plan members and beneficiaries to EVMWD employees. A “Classic”
CalPERS Miscellaneous member (hired prior to January 1, 2013) becomes eligible for service
retirement upon attainment of age 55 with at least 5 years of credited service. Public
Employees' Pension Reform Act (PEPRA) Miscellaneous members (hired on or after
January 1, 2013) become eligible for service retirement upon attainment of age 62 with at least
five years of service.
The service retirement benefit is a monthly allowance equal to the product of the benefit factor,
years of service, and final compensation. The final compensation is the monthly average of the
member's highest 36 full-time equivalent monthly pay. Retirement benefits for PEPRA
Miscellaneous members are calculated as a percentage of their plan based the average final
36 months compensation.
California law requires an annual calculation of the net pension liability and contribution for
each participating agency. This calculation is utilized by the agency to budget for and make
contributions to CALPERS toward its unfunded liability balance. In FY 2017, EVMWD
contributed $2,747,053 toward the pension services plan. The FY 2016-17 CAFR contains a
detailed description of the calculation of benefit and unfunded liability.
The District also provides an Employee Savings Clause Plan to employees hired prior to
January 1, 2013 whereby the plan credits employees with hours of service per year to a
maximum of 800 hours, payable upon separation or retirement.
Status and Opportunities for Shared Services/Facilities
EVMWD is a water and sewer district and agency member of the Western MWD that serves a
diverse area and with multiple types of retail water and sewer customers. EVMWD has
undertaken a number of shared service opportunities with other agencies, including:
• EVMWD cooperates with the primary water provider, Western MWD as well as Eastern
MWD, Temescal Valley WD, Rancho California WD and the City of Corona with supply
and intertie connections to share water in emergency situations.
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• EVMWD participates in a Joint Powers Authority (JPA) with RCWD and Western MWD
for sewer treatment services at the SRWRF now under the ownership of SRRRA
• EVMWD participates in a Joint Powers Authority (JPA) with Temescal Valley WD and
the City of Corona for management of two water basins in the Temescal Valley area
• EVMWD is a member of the Lake Elsinore San Jacinto Water Authority (LESJWA) that
manages water flows and use in the Lake Elsinore watershed.
• The District owns Canyon Lake and contracts with the Canyon Lake Association to
provide recreational opportunities in the reservoir.
Government Structure and Accountability
EVMWD is governed by board of directors with five members elected by division for four-year
terms.
Table 54 – Elsinore Valley Municipal Water District Board of Directors
Board Members Term Expires
Andy Morris, President, Div. 5 2022
Phil Williams, Vice President, Div. 4 2020
Darcy Burke, Treasurer, Div. 1 2022
Harvey R. Ryan, Director, Div. 2 2020
Jared McBride, Director, Div. 3 2022
The Board meets at the District Office located at 31315 Chancy Street, Lake Elsinore, CA
92531-3000. The Board of Directors appoints a General Manager as the Chief Administrative
Officer who is responsible for managing District operations on a day-to-day basis, and select,
appoint and manage staff and consultants to carry out District programs and projects. The
Board also appoints a Legal Counsel and Treasurer.
The District provides public information on its website, including information on a history of the
District, current projects, water and sewer information, customer inquiries and FAQs,
conservation programs, annual budgets, and audits (CAFR). The website also includes contact
information for the Board of Directors and staff and Board meeting agendas and minutes.
Other major reports are accessible via links on the portal. A contact portal is also provided to
further research District reports and studies.
The District staff state that they work cooperatively with several other water agencies and
cities in the County and region. Based upon water rights and infrastructure resources, there
does not appear to be increased interest in considering alternative government service
structures at this time. Additionally, within the last five years, District staff is aware of one
property in the area, the Preserve at San Juan, with interest in annexing to the District. The
property is located along the western side of Ortega Highway at Long Canyon Road. A portion
of the property would require annexation to the District in Orange County.
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LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
The Home Gardens County Water District (HGCWD) was formed as a State of California
Special District under the Water Code §30000 in 1978 to replace the Home Garden Water
Mutual Association. The area of jurisdiction of the HGCWD is 232.5 acres of a portion of the
unincorporated area of Home Gardens, adjacent to the City of Corona within portions of the
City’s sphere of influence. The District has operational office facilities that are maintained in
the District area to facilitate the provision of services.
The primary mission of the HGCWD is for the purpose of providing safe potable water that
meets or exceeds quality requirements set by the State Department of Health for the
businesses and approximately 3,100 residents within District boundaries served through 822
water connections. The District currently serves its water customers from one main source of
supply: purchases from the City of Corona. Local groundwater from the Riverside Groundwater
Basin had previously been a potable water source, but the District has purchased wholesale
water from the City of Riverside for many years and more recently from the City of Corona. It is
stored in a one-million-gallon reservoir tank. The District can also purchase water from the City
of Riverside in an emergency through a pipeline connection.
The HGCWD does not expect to need significant additional water supplies to be able to satisfy
nominal growth within the District’s service area. The District participated in the development
of a comprehensive Urban Water Management Plan by the City of Corona in 2015 to plan for
future water supplies.
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Exhibit 11 – Home Gardens County Water District
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Home Gardens County Water District – Agency Profile
General Information
Agency Type County Water District Act; WC 30000 et seq.
Date Formed 1978
Services Retail water services
Service Area
Location Unincorporated area adjacent to City of Corona south of Hwy 91 east of I-15 Freeway
Square Miles/Acres 232.5 acres
Total Water/Sewer Connections 822 (primarily residential)
Population Served Approximately 3,100
Water Infrastructure
Facilities Pipeline connection to City of Corona; 9.6 miles District pipelines
Storage Capacity 1 million gallon storage reservoir
Primary Source of Supply Purchase wholesale water from City of Corona; Groundwater – wells
Water Rates (single-family home) 2015 Rates: ¾” meter = $31.25/mo.; Commodity rate 1-18 HCF = $2.73, 19 + HCF = $2.91;
rates adjusted if cost to purchase water increases.
Budget Information - FY 2017-2018 (Water Funds)
Revenues Expenditures Net Surplus/(Deficit)
Water Fund $848,804 $637,576 $211,228
Capital Expenditures FY 2017-2018 Long-Term Planned Expenditures
$125,000 Reserve for system repairs/upgrades as needed
Water Fund Balance $605,426 $350,207 unrestricted funds
Agency Net Position $490,186 Source: 2017 Audit
Governance
Governing Body Five member Board of Directors elected at-large; District Office is 3832 N. Grant Street,
Corona, CA 92879; hours Monday-Thursday 8:30 a.m. – 4:30 p.m..
Agency Contact David F. Vigil; 951-737-4741; hgcwd@yahoo.com
Note: District has no website
Sources – Questionnaire response, audits
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Growth and Population Projections
As part of an Urban Water Management Plan Update for City of Corona completed in 2015,
HGCWD was included with population and growth projections. The current and estimated
future service population for HGCWD is shown in Table 55.
Table 55 – HGCWD Population Projections, 2015-2040
2015 2020 2025 2030 2035 2040
3,100 3,200 3,300 3,300 3,300 3,300
Source: District Staff and City of Corona UWMP (2015)
Between 2015 and 2040, the District’s service population is expected to increase in service
population by approximately 40 connections or 200 residents. The majority of this growth is
expected to be in one new project and minor infill within the District’s service area.
Disadvantaged Unincorporated Communities (DUCs)
Information from the City of Corona indicates that there are several DUC and DAC areas
within the City SOI and unincorporated area of Home Gardens, but they are served water by
other agencies. The City and HGCWD have partnered together and constructed a new well
with the help of a $2 million grant. The well is operational at this time, but its use is pending the
City of Corona finishing its filtration system. LAFCO documentation reveals that there is one
DUC in the Corona/HGCWD area, and none adjacent to the SOI which is coterminous with the
District service territory boundary.
Present and Planned Capacity of Public Facilities
HGCWD utilizes water supplies from one primary source for drinking water supply: imported
water via the City of Corona. The District formerly purchased water from the City of Riverside
and has an emergency connection capability if needed.
Imported Water (Purchased)
HGCWD purchases local and imported water from the City of Corona. Due to conservation
orders and advisories issued by the State and other agencies during drought periods, HGCWD
customers have traditionally not increased their water consumption during drought periods.
Purchases may be slightly higher in drought periods, but the District averages between 350
and 370 acre-feet per year.
Groundwater
HGCWD does not currently use groundwater pumped within the District. The City of Corona
provides wholesale water and included the water sold to the District in its UWMP Update in
2015. The City and HGCWD have received a grant of $2 million to fund a new well to reduce
the cost of purchased water to the District and help reduce the need for imported water.
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Recycled Water
HGCWD does not currently have a recycled water distribution system or access to recycled
water.
Water Demand Projections
The UWMP Act requires a water retailer to quantify the minimum water supply available during
the years 2016 to 2018, assuming years 2016 to 2018 repeated the driest three-year historic
sequence for each water supply source. HGCWD’s estimated minimum supplies are shown in
Table 56 below. These supplies are based on the anticipated reliability of imported water from
the City of Corona.
Table 56 – HGCWD Minimum Supplies, 2016-2018
2016 2017 2018
(acre-feet) (acre-feet) (acre-feet)
351.15 363 370
Source: Corona UWMP Update 2015 and actual purchases
Supply and Demand Assessment
Historically, there has been an increase in water use among agencies due to increased
development. Conservation efforts have proven to be effective in decreasing water use in dry
years. In the City of Corona’s recent UWMP Update, HGCWD it was estimated that demands
could increase ten percent during a single dry year due to some area property owners
experiencing local supply reductions. However, during a multiple dry year period, it is expected
that conservation messaging and restrictions would lead to consumption dropping back down
to normal year levels in the second dry year, and falling a further ten percent in the third dry
year.
Since the HGCWD area is essentially built out, no measurable increase in supply or demand is
expected in the coming years unless infill or changes in area zoning are made.
Emergency Preparedness (Supply Interruption Capability)
Extended supply shortages are unlikely due to natural disasters or accidents which damage all
water sources. However, HGCWD’s emergency capability plan is to provide water via its two
connections to the cities of Corona and Riverside. The District also has an agreement with City
of Corona for emergency response assistance if needed.
Financial Ability to Provide Services
As of June 30, 2017, the District was able to report a positive balance in its unrestricted net
position of $525,207. On June 30, 2016, the balance was $346,768. This is an increase of
$178,439 or 51 percent. The net position of the District, the value of assets and funds on hand
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for operations and capital investment, over the same period increased $211,249 or
approximately 76 percent.
HGCWD operates its water services as an enterprise fund within the confines of overall District
operations. Water sales and service charges comprise the significant majority of operating
revenues that fund the services provided for water operations and administration, 87 percent.
Overall, the District’s water funds are considered stable and self-sustaining for operational,
capital and debt service activities. The cost of purchasing water has decreased as a result of
an agreement with the City of Corona to purchase water at a lower cost than previously with
the City of Riverside. Rate increases had not been implemented over the previous several
years up until 2013 to accommodate expenditures for maintenance and setting aside reserves
for capital improvements.
The District has adopted a Financial Reserve Policy that designates funds for capital reserve
and debt service. The policy provides direction to District staff on addressing reserves in the
annual budget process. The District maintains an adequate reserve fund balance providing the
capability to absorb short term impacts, and is able to maintain an acceptable debt service to
annual expenditure ratio.
A comparison of three years financial statistics from the published 2017 Audit Report is
provided below.
Table 57 – EVMWD Financial Statements, FY 2015-FY 2017
FY 2015
(partial detail) FY 2016 FY 2017
Operating Revenues
Water consumption sales $ 761,511 $ 720,282 $ 736,733
Penalties and charges – 19,635 17,625
Grant income – 88,057 91,192
Other income 20,663 1,875 2,293
Total operating revenue $ 782,174 $ 829,849 $ 847,843
Operating Expenses
Source of supply $ – $ 175,786 $ 182,384
Pumping – 1,734 1,718
Office payroll, be nefits, and payroll taxes – 187,927 209,391
Transmission and repair – 54,289 38,062
General and administrative – – 162,969
Depreciation expense – 54,840 52,389
Total operating expenses $ 747,751 $ 590,224 $ 594,524
Operating income (loss) $ 34,423 $ 39,625 $ 53,319
Non-Operating Revenues ( Expenses)
Interest income $ 351 $ 24 $ 961
Interest expense -49,085 -52,798 -43,052
Total non-operating revenues (expenses) $ -48,085 $ -51,874 $ -42,091
Change in net position $ -14,311 $ 87,228 $ 211,228
Net position – beginning 105,518 91,207 78,958
Net position - ending $ 91,207 $ 278,958 $ 490,186
Sources: Audit Report 2015, 2016 and 2017
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There are seven primary criteria, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water service operations.
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratios of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
1. 3 Year Revenue/Expenditure Budget Trends
The District fund overall has been experiencing excess revenues over expenses for the past
two fiscal years as well as occasional deficit spending in the prior years. However, this is
attributed primarily to higher water supply costs in prior years. The Net Position has been
improved over the past two years.
2. Ratios of Revenue Sources
The District receives approximately 88 percent of its water fund revenues from charges and
fees for services, no revenue from property taxes, and about 12 percent from miscellaneous
other sources such as grants and interest income. The ratios of unrestricted reserves reflect
an appropriate balance for typical enterprise fund services; this minimizes the impact that
negative economic factors might have.
3. Ratio of Reserves or Fund Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted cash reserve or fund balance the service fund
maintains in relation to the annual fund expenditures. The District’s fund balance ratio is
approximately 90 percent of annual expenditures. This fund ratio represents a more than
adequate ratio position and the reserve has been increasing over the past two years.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the
District’s ability to meet debt obligations in relation to service provision expenditures. Ideally, a
ratio of 10 to 15 percent or less would reflect an acceptable ratio. The District’s water fund has
reasonable debt, including payment of a Note from the State of California for a reservoir and
system upgrades constructed in 1987. The District’s annual debt service ratio to total
expenditures is approximately 12 percent, an acceptable ratio. The interest and principle
payments will increase in future years per the note payment terms. The District anticipates no
new debt in the near future.
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5. Rate Structures
The District revised water rates in August 2013 to reflect the need for balance revenue sources
from the monthly service charge and water commodity rates. The commodity rate was
increased to provide needed revenues for setting aside reserves while covering ongoing
expenditures. The District’s established water rates range from $2.72 per 100 cubic feet of
usage from 1 to 18 units and $2.90 per 100 cubic feet of usage over 18 units of water. Water
service charges for water service charge maintenance range from $31.35 – 52.36 for a typical
residential ¾” and 1” size meter.
6. Capital Improvement Program/Plan
The District has minimal facilities since it no longer has regularly operating wells. Repair of
distribution pipelines and meters and the 1 MG tank are handled in the operating expenditure
accounts, and a nominal capital reserve is set aside with a reserve surplus in excess of
$250,000.
7. Pension Liability and Other Post-Employment Benefits Liability
The District maintains a privately managed retirement program whereby the District contributes
5 percent and employees may contribute up to a total of 15 percent of payroll to the plan
toward retirement. Employees are vested after three years of service. The District reports that
there is no unfunded pension liability.
Status and Opportunities for Shared Services
HGCWD is a water agency that serves a small area with primarily retail residential water
customers. HGCWD has undertaken some shared service opportunities with other agencies,
including:
• HGCWD cooperates with the primary water provider, City of Corona and Western MWD
with a supply and intertie connection to purchase water and obtain reliable supply of
water in emergency situations.
• The District has an agreement with the City of Corona for emergency operations
support if needed.
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Government Structure and Accountability
HGCWD is governed by board of directors with five members elected at large for four-year
terms.
Table 58 – Home Gardens County Water District Board of Directors
HGCWD Board Member Term Expires
Hank Sonksen, President 2021
Albert Holguin, Vice President 2021
Peggy Rogers, Treasurer 2019
Rocio Ortiz 2019
Sandra Solis 2021
The Board meets at the District Office located at 3832 N. Grant Street, Corona, CA 92879. The
Board of Directors appoints a General Manager as the Chief Administrative Officer who is
responsible for managing District operations on a day-to-day basis, and select, appoint and
manage staff and consultants to carry out District programs and projects. The Board also
appoints a Legal Counsel and District Engineer.
The District does not have a website. As such, access to meeting minutes, agency audit
and/or budget information, agency contact information, etc. is limited. To promote
transparency and accountability as well as allowing public oversight of District activities, a
basic website should be a high priority for the District. The California Special Districts
Association (CSDA) offers member agencies special programs and assistance with website
startup and design. The District should consider this or other options to establish a website.
The District staff state that they work cooperatively with several cities and other water
agencies in the County and region. Based upon the location of the District overlapping the
HGSD, it could be of benefit to consider discussions between the two agencies for functional
and possibly governance consolidation. Additionally, District staff is aware of one property in
the area that should be developed in 2018-19.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Home Gardens Sanitary District
Overview/History
The Home Gardens Sanitary District (HGSD) was formed as a State of California Special
District under the Sanitary District Act of 1923 on July 1, 1957. The area of service jurisdiction
of the HGSD is 717 acres of a portion of the unincorporated area of Home Gardens adjacent
to the City of Corona in Riverside County. The District has operational office facilities that are
maintained in the District area to facilitate the provision of services.
The primary mission of the HGSD is for providing sewer collection and disposal for businesses
and approximately 8,000 residents within District boundaries served through 2,390
connections. The District provides service within portions of the City’s sphere of influence
which is adjacent to the City of Corona. The District currently serves its sewer customers by
operating a sewer collection system of 16 miles of pipelines varying from 8- to 15-inch in
diameter. The sewage is conveyed to a regional wastewater treatment plant for processing.
The HGSD does not expect to have substantial growth in its service area in the next few years.
The District has a long-term agreement with the regional treatment plant ownership for
treatment of sewage and has been averaging .59 MGD flows of a capacity to serve of 1 MGD.
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Exhibit 12 – Home Gardens Sanitary District
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Home Gardens Sanitary District - Agency Profile
General Information
Agency Type Sanitary District Act of 1923
Date Formed July 1, 1957
Services Collection of sewage for treatment at regional wastewater plant
Service Area
Location Western Riverside County adjacent to City of Corona so of Frwy 91
Square Miles/Acres 717 acres
Total Water/Sewer Connections 2,390 connections, primarily (93%) residential
Population Served Approximately 8,000
Sewer Infrastructure
Facilities 16 miles of sewer collection pipelines varying from 8- to 15-inch diameter
Current and Projected Treatment District has 1 MGD capacity in regional wastewater treatment plant (Western Riverside
Capacity County Regional Wastewater Authority)
Primary Disposal Method Regional plant treats to advanced treatment and a portion is reclaimed water supply to
agencies and a portion is placed in the Santa Ana River for percolation reuse
Sewer Rates (single-family home) $34.00 per month, fixed rate
Budget Information - FY 2017-2018 (Water & Sewer Funds)
Revenues Expenditures Net Surplus/(Deficit)
Sewer Fund $1,152,898 $1,085,184 $ 67,714
Capital Expenditures FY 2017-2018 Long-Term Planned Expenditures
$300,000 Unknown
Wastewater Fund Balance/Reserves $2,448,520
Agency Net Position $2,448,298
Governance
Governing Body Five-member Board of Directors elected at large; meetings at District Office at 13538
Magnolia Avenue, Corona, CA 92879
Agency Contact Janey Gress, General Manager; 951-735-2368; hgsd@sbcglobal.net
Sources: Questionnaire response, 2017 Audit; no website found
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Growth and Population Projections
As part of a master plan of service by the Western Riverside County Regional Wastewater
Authority (WRCRWA) of which the District is a member, the expected growth rate within the
District was included for the next 25 years at slightly less than two percent (similar to the
overall regional rate in Western Riverside County). There is no specific population area
analysis for the District; however, a reasonable projection may be made from area growth
patterns. The current and estimated future service population for HGSD is shown in Table 59.
Table 59 – HGSD Population Projections, 2015-2040
2015 2020 2025 2030 2035 2040
8,000 8,800 9,700 10,600 10,600 10,600
Source: District Staff and City of Corona UWMP (2015)
Between 2015 and 2030, the District’s service population is expected to increase in service
population by approximately 775 connections or 2,600 residents. The majority of this growth is
expected to be in residential and commercial infill within the District’s service area.
Disadvantaged Unincorporated Communities (DUCs)
Information from the City of Corona indicates that there are several DUC and DAC areas
within the City’s sphere of influence and one in the unincorporated area of Home Gardens,
identified as Corona DUC 1. None are adjacent to the SOI which is coterminous with the
District service territory boundary.
Present and Planned Capacity of Public Facilities
Wastewater (Water Reclamation)
HGSD utilizes 16 miles of sewer collection pipelines with gravity flow to a regional
transmission conveyance system and regional sewage treatment plant. The District does not
own its own treatment facilities but is a member of the WRCRWA and has recently contracted
to expand its capacity in the plant to 1 MGD. The average daily flows in 2017 were .59 MGD,
well within the available flow capacity at the treatment plant. The District also has a lease
agreement with the Western MWD to be able to temporarily discharge up to .50 MGD to the
Santa Ana Regional Interceptor (SARI) system line that flows to the Santa Ana Watershed and
Orange County Sanitation District system.
HGSD does not currently treat its sewage flows and does not have a recycled water
distribution system or access to recycled water.
Emergency Preparedness (Collection and Treatment Interruption Capability)
Extended treatment stoppages are unlikely due to natural disasters or accidents which
damage all sewer collection and/or treatment. However, HGSD’s emergency capability plan is
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to provide collection system repair as soon as possible or utilize other treatment facilities as
needed in regional Riverside. The District also has an agreement with Western MWD for
emergency treatment of up to .50 MGD assistance if needed. In the event of a major
earthquake much of the water supply may be cutoff and sewage flows would expect to be
significantly reduced for a limited time.
Financial Ability to Provide Services
As of June 30, 2017, the District was able to report a positive balance in its unrestricted net
position of $2,448,298. On June 30, 2016, the balance was $3,111,096. This is a decrease of
$ 662,798 or 21 percent. The net position of the District, the value of assets and funds on hand
for operations and capital investment, over the same period increased $67,714 or
approximately 1 percent.
HGSD operates its sewer services as an enterprise fund within the overall District operations.
Sewer service charges comprise the significant majority of operating revenues (77 percent)
that fund the services provided for sewer collection, treatment operations and administration.
Overall, the District sewer fund is considered stable and self-sustaining for operational, capital
and debt service activities. The cost of sewage treatment has increased as a result of the
District purchasing additional capacity in the regional treatment plant in Corona. Rate
increases had not been implemented over the previous several years up until 2015 to
accommodate expenditures for maintenance and setting aside reserves for capital
improvements.
The District has adopted a Financial Reserve Policy that designates funds for capital reserve
and debt service. The policy provides direction to District staff on addressing reserves in the
annual budget process. The District maintains an adequate reserve fund balance providing the
capability to absorb short term impacts, and is able to maintain an acceptable debt service to
annual expenditure ratio.
A comparison of three years financial statistics from the published 2017 and 2016 Audit
Reports is provided below.
Table 60 – HGSD Financial Statements, FY 2015-FY 2017
FY 2015
(partial detail) FY 2016 FY 2017
Operating Revenues
Sewer services $ 547,896 $ 728,522 $ 870,625
Permit and plan check fees – – 530
Connection fees – – 77,852
Other income 408 320 663
Total operating revenue $ 548,304 $ 820,060 $ 949,640
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FY 2015
(partial detail) FY 2016 FY 2017
Operating Expenses
Sewer treatment $ – $ 564,318 $ 505,890
Professional services (legal, engineering) – 86,587 73,572
Office payroll, be nefits, and payroll taxes – 199,946 202,720
Repairs and maintenance – 71,025 29,319
General and administrative – 71,356 76,359
Depreciation expense – 201,816 195,602
Total operating expenses $ 970,606 $ 1,195,048 $ 1,083,462
Operating income (loss) $ -422,302 $ -374,988 $ -133,822
Non-Operating Revenues ( Expenses)
Interest income $ 7,232 $ 10,130 $ 19,060
Property taxes 65,939 175,277 184,198
Interest on debt -3,351 -2,548 -1,722
Total non-operating revenues (expenses) $ 169,820 $ 182,859 $ 201,536
Net Position
Net position – beginning $ 7,007,959 $ 6,755,477 $ 6,563,348
Net position - ending 6,755,477 6,563,348 6,631,062
Change in net position $ -252,482 $ -192,129 $ 67,714
Sources: Audit Reports 2016 and 2017
There are seven primary criteria, discussed below, that may be utilized to assess the present
and future financial condition of the District’s sewer service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratios of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
1. 3 Year Revenue/Expenditure Budget Trends
The District fund overall had been experiencing higher expenses than revenues through 2015.
After revising rates in June 2015, revenues have increased for the past two fiscal years
resulting in the first positive increase in Net Position in several years. Most expenses have
increased commensurate with cost of living rates.
2. Ratios of Revenue Sources
The District receives approximately 77 percent of its sewer fund revenues from charges and
fees for services, about 15 to 18 percent from property taxes, and about 5 percent from
miscellaneous other sources such as interest income. The ratios of unrestricted reserves
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reflect an appropriate balance for typical enterprise fund services; this minimizes the impact
that negative economic factors might have.
3. Ratio of Reserves or Fund Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted cash reserve or fund balance the service fund
maintains in relation to the annual fund expenditures. The District’s unrestricted fund balance
ratio is approximately 225 percent of annual expenditures. This fund ratio represents a more
than adequate ratio position and the reserve has been used to offset higher expenses over
revenues for several years.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the
District’s ability to meet debt obligations in relation to service provision expenditures. Ideally, a
ratio of 10-15 percent or less would reflect an acceptable ratio. The District’s sewer fund has
low debt outstanding including payment of an Installment purchase contract with WRCRWA to
pay for SRF loans in amount of $31,151 to be paid off in 2018. The District’s annual debt
service ratio to total expenditures is approximately three percent, a low ratio. The District
anticipates no new debt in the near future.
5. Rate Structures
The District revised sewer rates in June 2015 to reflect the need for balance revenue sources
from the monthly service charge rates. The District ordinance states that rates had not been
raised for 20 years. The District’s established sewer rates are based upon an EDU factor for
residential users and adjusted for other uses. The EDU rate in 2018 is $34 per month and will
increase to $36 in 2019.
6. Capital Improvement Program/Plan
The District does not operate a treatment plant but is responsible for the collection system in
accordance with the State Water Resources Control Board’s order. All sewer dischargers must
have a Sewer System Management Plan that accounts for sufficient capacity and adequate
repair. The Board sets aside money for these purposes and must review the condition of its
system every two years.
7. Pension Liability and Other Post-Employment Benefits Liability
The District maintains a privately managed retirement program whereby the District contributes
25 percent. Employees are vested after six years of service. The District reports no unfunded
pension liability.
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Status and Opportunities for Shared Facilities/Services
HGSD is a sewer agency that serves a small area with primarily residential and some
commercial customers. HGSD has undertaken some shared service opportunities with other
agencies, including:
• HGSD cooperates with the regional Authority for sewage treatment services and is a
member of the Authority.
Government Structure and Accountability
HGSD is governed by board of directors with five members elected at large for four-year
terms.
Table 61 – Home Gardens Sanitary District Board of Directors
HGSD Board Member Term Expires
Salvador Cacho, President 2019
Efrain Barajas, Sec/Treasurer 2019
Grady Garrison 2021
Karen Samson Runion 2021
Miguel Serrato 2021
The Board meets at the District Office located at 13538 Magnolia Avenue, Corona, CA 92879.
The Board of Directors appoints a General Manager who is responsible for managing District
operations on a day-to-day basis, and select, appoint and manage a small staff and
consultants to carry out District programs and projects. The Board also appoints a Legal
Counsel and District Engineer.
The District does not currently have a website. As such, access to meeting minutes, agency
audit and/or budget information, agency contact information, etc. is limited. The California
Special Districts Association (CSDA) offers member agencies special programs and
assistance with website startup and design. Pursuant to the mandate of Senate Bill 929 (Ch.
408-2018 Stats.), the District has indicated it will have a website by January 1, 2020.
The District staff state that they work cooperatively with several cities and other sewer
agencies as they contract for treatment services in the County and region. Based upon the
location of the District overlapping the HGCWD, it could be of benefit to consider discussions
between the two agencies for functional and possibly governance consolidation.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
The Jurupa Community Services District (JCSD) was formed in 1956 to provide sewer
services to the Jurupa area of western Riverside County. The District is governed by a five-
member, independent, elected Board of Directors. Since 1956, JCSD has increased its service
area from 26 square miles to 40.8 square miles. The District provides water, sewer, park and
recreation, graffiti abatement, frontage landscape, and street lighting services to a population
of approximately 134,520 residents and commercial/industrial facilities located within its
service area. The District’s service area encompasses a portion of the City of Jurupa Valley
and the entire City of Eastvale.
The District’s primary water sources are local groundwater basins. To ensure a reliable water
supply for both existing and future residents, the District participates in a joint power authority
(JPA) with neighboring agencies called the Chino Basin Desalter Authority (CDA). Local
groundwater supplies include treated and untreated water pumped from the Chino Basin for
potable and non-potable uses and groundwater pumped from the Riverside Basin for non-
potable use.
JCSD produced approximately 25,300 acre-feet of water in fiscal year 2016-2017 to meet
customers’ demands. The District provides water services to approximately 31,200 residential,
commercial, industrial and irrigation connections from local groundwater sources. Residential
customers make up approximately 94 percent of the District’s customer base and consume
approximately 73 percent of the water produced annually by the District.
The District has pledged to provide a reliable, high quality water source to their customers and
pursue alternative sources of future water supplies including regional recycled water projects.
The District is a regional leader in promoting water conservation and continuing to make
investments in conservation and outreach programs to ensure compliance with State
mandates and encourages customers to use water efficiently. The District has set its water
supply diversification goals and objectives to achieve State-mandated water use targets by
2020.
The District's sewer system is split between three separate service areas that each discharge
to different Regional Treatment Plants. In addition, the District no longer operates any
wastewater treatment facilities of its own. The three areas and treatment systems are
summarized as follows:
• Treatment by the City of Riverside - Through its network of pumping, pipeline, and other
conveyance facilities, the District conveys wastewater from the District’s Jurupa Valley
area to the City of Riverside Regional Water Quality Control Plant. The District currently
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owns 5.0 million gallons per day (MGD) of treatment capacity within the City of
Riverside plant and currently discharges approximately 2.9 MGD to the Riverside
Treatment Plant.
• Treatment by Western Riverside County Regional Wastewater Authority Wastewater
(WRCRWA) - Wastewater collected from the District's Eastvale area and portions of
western Jurupa Valley are pumped via the River Road Lift Station to the WRCRWA
Treatment Plan operated by a Joint Powers Authority. JCSD is one of the five member
agencies comprising WRCRWA. The plant is administered and operated by Western
Municipal Water District (WMWD). The members of the JPA recently completed the
expansion of the WRCRWA Treatment Plant from 8 MGD to 14 MGD. This increased
JCSD’s treatment capacity from 3.25 MGD to 6 MGD, and JCSD is a 42.6 percent
participant in the plant and JPA. JCSD currently discharges approximately 4.5 MGD to
the WRCRWA Treatment Plant.
• Inland Empire Brine Line - Wastewater from the predominantly industrial customers in
Community Facilities District (CFD) No. 1 is discharged into the Inland Empire Brine
Line (Brine Line) for treatment at the Orange County Sanitation District (OCSD)
Treatment Plant that also treats effluent from the Chino Basin Desalter Plant. This plant
has different standards regulating salinity because the plant discharges into the Pacific
Ocean rather than the Santa Ana River. Consequently, the District utilizes this facility
for high salinity waste from its industrial customers. The District owns 1.155 MGD of
OCSD treatment capacity and 3.493 MGD of Brine Line pipeline capacity, and
discharges approximately 0.81 MGD.
The District also provides other public community services that are not the subject of this
review. These include parks and recreation, street lighting & frontage landscaping as well as
graffiti abatement in a portion of the District.
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Exhibit 13 – Jurupa Community Services District
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Jurupa Community Services District - Agency Profile
General Information
Agency Type Community Services District Act Gov. Code 61000 et seq.
Date Formed 1956
Services Retail water, sewer, parks and recreation, street landscaping and lighting and graffiti
abatement
Service Area
Location Northwest Riverside County including city of Eastvale and most of Jurupa Valley
Square Miles/Acres 40.8 square miles
Total Water/Sewer Connections Water: 31,200 (2017 CAFR) Sewer: 29,346 (SSMP survey 1/2018)
Population Served 128,792 per 2017 annual report to State Drinking Water Program
(currently at 134,520)
Water Infrastructure
Facilities 18 potable wells, 5 non-potable wells, max production of 53.1 MGD
Storage Capacity In system not calculated
Primary Source of Supply Groundwater from wells in two basins
Water Rates (single-family home) Flat rate for a ¾-inch meter is $36.46 per month; residential users have a 4 tiered rate system:
1-20 HCF is $1.49; 21-50 is $1.89 with two more tier ranges for heavier water users.
Sewer Infrastructure
Facilities 387 miles collection pipelines between 6 and 42 inches, 8 active pump stations, and
2 standby pump stations.
Current and Projected Treatment Capacity in 3 Regional Treatment Plants: WRCRWA - 6 MGD; City of Riverside – 4 MGD
Capacity (5 MGD in 2030); OCSD - 1.155 MGD with 3.493 MGD of Brine Line capacity; Total current
treatment capacity - 11.155 MGD (12.155 in 2030); Current total flow - 7.86 MGD
Primary Disposal Method Contract WWTF dispose by reclaimed water or Santa Ana River Recharge Project with OC
Sanitation District
Sewer Rates (single-family home) Base sewer rate is $25.39 per month for residential, plus $1.60 per HCF (maximum of 8 HCF
per month for residential).
Budget Information - FY 2017-2018 (Water & Sewer Funds)
Revenues Expenditures Net Surplus/(Deficit)
Water Fund $47,436,137 $31,989,563 $15,446,574
Sewer Fund $26,228,408 $21,014,196 $5,214,212
Combined Funds a $88,484,551 $66,228,181 $22,256,370
Capital Expenditures FY 2017-2018 Long-Term Planned Expenditures
$34,445,500 $152,456,000 (2019 & beyond per CIP)
Water Fund Balance/Reserves $41,209,470
Sewer Fund Balance/Reserves $31,334,333
Agency Net Position b $529,047,744
Governance
Governing Body Five member Board of Directors elected by division; Board meets second and fourth Monday
at 6:00 p.m. at District office at 11201 Harrel Street, Jurupa Valley, CA 91752
Agency Contact Todd M. Corbin, 951-685-7434, tcorbin@jcsd.us
Notes:
a All agency funds
b All agency Net Assets per 2017 CAFR
References: UWMP 2015, Water Boards SSMP Survey, Website documents, 2017 CAFR, CIP
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Growth and Population Projections
As part of an Urban Water Management Plan (UWMP) Update completed in 2015, JCSD
developed population and growth projections. The current and estimated future service
population for JCSD is shown in Table 62.
Table 62 – JCSD Population Projections, 2015-2040
2015 2020 2025 2030 2035 2040
120,456 128,446 136,436 144,426 152,416 158,808
Source: UWMP (2015)
Between 2015 and 2035, the District’s service population is expected to increase in service
population by 31,880 residents. The majority of this growth is expected to be in the urban area
of the two cities (Jurupa Valley and Eastvale) within the District’s service area.
Disadvantaged Unincorporated Communities (DUCs)
Riverside LAFCO has determined that there are no DUCs within the District boundary nor any
adjacent to the District SOI area.
Present and Planned Capacity of Public Facilities
The District utilizes water supplies from wells in two primary source basins for drinking water
supply.
Potable Water Supply
JCSD currently operates 18 potable water wells in the Chino Basin that have a theoretical
maximum production rate of 53.1 MGD or 36,873 GPM. However, JCSD does not operate its
wells at maximum capacity, but rather they fluctuate on and off as demand changes. During
2015, JCSD pumped 8,993 AF from its potable wells. The pumped potable water volumes
between 2011 and 2015 are provided in Table 63.
The Board of Directors of JCSD has authorized the construction of two new wells; Well No. 29
and Well No. 30 that are expected to be operational by 2020 and each will contribute an
additional 2,500 AF per year. It is planned that by 2020 the District’s total maximum day
groundwater production capacity will be 54.8 MGD (or 38,000 GPM). Construction of these
wells will not only contribute additional supply, but also increase redundancy and replacement
capacity.
The District operates two ion-exchange plants to denitrify water from several of their wells. The
first is the Roger D. Teagarden Ion Exchange Facility which removes nitrates from seven
potable wells. The other plant is the Well 17/18 Ion Exchange Facility that removes nitrates
from JCSD Well Nos. 17 and 18.
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As part of the planning process developing the 2015 UWMP, JCSD has identified both local
groundwater and imported water sources to meet its growing demands.
Non-Potable Water Supply
JCSD also operates four non-potable wells located in the Chino Groundwater Basin. During
2015, JCSD pumped 266 AF from its non-potable Chino Basin wells to serve local park
landscape irrigation-only accounts. The District’s future non-potable water supply pumped from
the Chino Basin is anticipated at 310 AF per year. In addition to the potable and non-potable
wells operated by JCSD within the Chino Basin described above, the District also operates two
non-potable wells located in the Riverside Groundwater Basin. Water from these wells is used
to irrigate Oak Quarry Golf Club located at 7151 Sierra Avenue in Jurupa Valley. During 2015,
JCSD pumped 464 AF from its non-potable wells in the Riverside Groundwater Basin.
Imported Water (Purchased)
JCSD does not purchase imported water due to the closest facilities being several miles from
the District. However, since 2000, JCSD has purchased water extracted from the Riverside
South Groundwater Basin from Rubidoux Community Services District (RCSD or Rubidoux
CSD). In 2014, JCSD finalized an agreement with Rubidoux CSD to allow JCSD to pump
potable water from Rubidoux CSD into JCSD’s system. In 2015, JCSD purchased 2,250 AF
from RCSD. JCSD assumes future annual purchases of 2,000 AF from RCSD.
Table 63 – JCSD Groundwater Production, 2011-2015
2011 2012 2013 2014 2015
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
16,007 13,461 17,547 17,211 9,838
Source: UWMP Update 2015
Surface Water
JCSD does not use surface water as part of its supply, nor does it have plans to expand
supply sources by using surface water. There are three major creeks that flow through the
District’s service area; Day Creek, San Sevaine Creek, and Cucamonga Creek that drain
towards the south from the San Gabriel mountains to the Santa Ana River.
Recycled Water
JCSD does not currently have a recycled water distribution system or access to recycled
water. To the extent feasible, if and when recycled water is available to JCSD, this water will
be offered to JCSD customers. However, the District is planning to replace some potable water
use with recycled water to meet the demands of future irrigation needs.
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JCSD has a current federal and state grant application in conjunction with the Inland Empire
Utilities Agency (IEUA) for the construction of both a regional and local recycled water
infrastructure. This will allow JCSD to utilize its own recycled water generated from the
WRCRWA facility for both groundwater recharge and direct non-potable application.
By utilizing recycled water for irrigation and other non-potable purposes, JCSD can more
efficiently allocate its potable water supply and increase the overall reliability of water supplies
in the service area. As discussed previously for storm water recharge, recycled water recharge
throughout the Chino Basin is managed by a partnership between IEUA, Chino Basin
Watermaster, Chino Basin Water Conservation District, and the San Bernardino County Flood
Control District (SBCFCD) under the Chino Basin Recycled Water Groundwater Recharge
Program. The recycled water infrastructure consists of a network of pipes that direct
stormwater run-off, imported water from SWP, and IEUA recycled water to a network of
sixteen recharge sites, most of which contain multiple recharge basins. IEUA annually
recharges approximately 10,000 AF of recycled water annually.
Water Demand Projections
The UWMP Act requires a water retailer to quantify the minimum water supply available during
the years 2016 to 2018, assuming years 2016 to 2018 repeated the driest three-year historic
sequence for each water supply source. JCSD’s estimated minimum supplies are shown in
Table 64 below. These supplies are based on the anticipated reliability of local surface water
and local groundwater.
Table 64 – JCSD - Minimum Supplies, 2016-2018
2016 2017 2018
(acre-feet) (acre-feet) (acre-feet)
21,969 22,411 22,860
Source: UWMP Update (2015)
Supply and Demand Assessment
Historically, there has been an increase in water use among agencies due to increased
development. Conservation efforts have proven to be effective in decreasing water use in dry
years. In the District’s recent UWMP Update, JCSD estimated that demands could increase
minimally (ten percent) during a single dry year due to some area property owners
experiencing local supply reductions. However, during a multiple dry year period, it is expected
that conservation messaging and restrictions would lead to consumption dropping back down
to normal year levels in the second dry year, and falling a further ten percent in the third dry
year and more beyond. The District anticipates that recycled water may be available in the
region in about five years, and that source of water will partially offset supply need and
positively impact potable supplies.
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The following tables summarize the anticipated supplies and demands for a Normal and Single
Dry Year based upon growth forecasts for JCSD.
Table 65 – JCSD Normal Year Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 31,993 36,493 40,993 40,993 40,993
Demand Totals 25,477 28,088 30,968 34,151 37,670
Difference 6,516 8,405 10,025 6,842 3,323
Source: UWMP Update (2015)
Table 66 – JCSD Single Dry Year Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 31,993 36,493 40,993 40,993 40,993
Demand Totals 25,477 28,088 30,968 34,151 37,670
Difference 6,516 8,405 10,025 6,842 3,323
Source: UWMP Update (2015)
Emergency Preparedness (Supply Interruption Capability)
Extended supply shortages are unlikely due to natural disasters or accidents which damage all
water sources. JCSD adopted an Emergency Response Plan (ERP) in January 2016 to ensure
that District services can safely resume normal operation as quickly as possible following any
natural, weather-related, man-made, or technological disaster. In addition to the ERP, the
District has prepared a Hazard Mitigation Plan and Vulnerability Assessment (confidential),
which are updated bi-annually. The plan addresses various emergency conditions in addition
to drought, earthquake, fire, and power outages. The District’s ERP considers appropriate
responses to floods, waterborne diseases, vandalism, terrorism, pandemic, system neglect,
cross connections, backflow conditions, construction accidents, chemical spills, and sewage
spills.
JCSD is a member of the statewide Water/Wastewater Agency Response Network
(CalWARN) that functions in coordination with the State Office of Emergency Services.
CalWARN is a network of agencies that support and promote statewide emergency
preparedness, disaster response, and mutual assistance for public and private water and
wastewater utilities.
More than half of JCSD’s potable wells are equipped with back-up generators with a
generator-based production rate of 28,175 GPM, which is 73 percent of the total current
production rate. Therefore, in the event of a regional power outage and wells were run on
generators, the District could provide approximately 73 percent of their current demand.
Standby generators are also installed at all JCSD booster stations. Furthermore, each of
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JCSD’s 16 storage tanks, totaling 55.6 million gallons of storage, has dedicated emergency
water supply equal to 75 percent of maximum day demand, in addition to supply reserved to
meet fire flow and peak demands.
JCSD is also a member of the Emergency Response Network of the Inland Empire (ERNIE),
which facilitates public agency preparedness for, response to, and recovery from local and
regional disasters. Agencies volunteer to enter into an agreement to provide mutual aid and
assistance to other member agencies. ERNIE assists agencies with trainings, communication,
documentations for reimbursement, concept of emergency operations, and writing after-action
reports and corrective action plans.
Financial Ability to Provide Services
As of June 30, 2017, the District was able to report a positive balance in its unrestricted net
position for water and wastewater enterprise funds of $72,543,803. On June 30, 2016, the
balance was $62,141,958. This is an increase of $10,401,845. The total net position of the
District for enterprise funds, the value of assets and funds on hand for water and wastewater
operations and capital investment, over the same period increased $24,991,925 or
approximately 6.1 percent.
JCSD operates its water services as enterprise funds within the confines of overall District
operations. Water sales and service charges comprise the significant majority of operating
revenues that fund the services provided for water operations and administration. On average,
the JCSD receives approximately 8 percent of its revenues from property taxes.
Overall, the District water and CIP funds are considered stable and self-sustaining for
operational, capital and debt service activities, although some minor deficit spending has
occurred periodically due to planned capital improvement projects and conservation directed
by the state. Rate increases had been implemented over the last several years up until 2018 to
accommodate expenditures for maintenance and capital improvements.
The District has adopted a comprehensive set of Financial Reserve Policies that designates
funds for various programs and long-term debts. The policy provides direction to District staff
on addressing reserves in the annual budget process and for regular update reports to the
Board of Directors. Reserves are established in various categories and uses:
• Restricted – Bond proceeds, debt service, and uses controlled by outside agencies or
regulations. The minimum amount established is the annual debt service requirement.
• Capital Facilities – To fund either the replacement of, or emergency repair of, District
capital equipment and infrastructure. Minimum amount established is $3,000,000.
• Liquidity Funds – This includes various operating and emergency accounts to provide
funding for rate stabilization (ten percent of water operating budget), operating reserves
(to cover a minimum of four months of operating expenses) and capital assets. It also
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includes a separate retiree health benefit reserve to fund Other Post-Employment
Benefits (OPEB). The minimum reserve is $1,000,000.
The District maintains a substantial reserve fund balance providing good capability to absorb
short term impacts, and is able to maintain an acceptable debt service to annual expenditure
ratio (currently 4.6).
A comparison of three years financial statistics for the Enterprise Funds (water and
wastewater) from the published Comprehensive Audited Financial Reports (CAFR) is provided
below.
Table 67 – JCSD Financial Statements – Enterprise Funds, FY 2015-FY 2017
FY 2015 FY 2016 FY 2017
Operating Revenues
Water consumption sales $ 16,639,381 $ 15,973,464 $ 16,959,900
Water service charges 13,250,721 14,080,399 14,806,557
Other operating revenue 1,145,216 1,241,313 1,046,193
Sewer services 16,523,992 17,481,851 17,779,196
Total operating revenue $ 47,559,310 $ 48,777,027 $ 50,591,846
Operating Expenses
Source of supply $ 11,665,300 $ 15,202,199 $ 12,417,801
Pumping 352,476 334,563 317,521
Water treatment 2,525,369 1,650,611 1,557,694
Transmission and distribution 2,773,325 2,671,853 2,223,930
Customer accounts 1,815,536 1,725,399 2,269,934
Sewer collection & treatment 8,316,988 8,139,234 11,516,835
General and administrative 9,623,501 9,610,717 9,663,031
Operations & maintenance 195,770 173,520 7,185
Total operating expenses 37,268,165 39,508,096 39,973,931
Operating income before depreciation 10,291,175 9,268,931 10,617,915
Depreciation expense -7,633,402 -8,404,250 -10,915,415
Operating income (loss) $ 2,773,325 $ 2,671,853 $ 2,223,930
Non-Operating Revenues (Expenses)
Property taxes $ 2,443,908 $ 2,687,080 $ 3,021,312
Investment earnings 350,102 918,795 1,309,827
Interest expense -503,916 -996,448 -1,228,649
Other non-operating revenue, net 91,310 281,767 -703,199
Total non-operating revenues, net 2,381,404 2,891,194 2,339,291
Net income (loss) before capital contributions $ 5,039,177 $ 3,755,875 $ 2,101,791
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FY 2015 FY 2016 FY 2017
Capital Contributions
Facility fees $ 13,438,121 $ 11,714,598 $ 17,199,658
Contributions in aid o f construction 12,811,299 6,815,900 5,690,476
Total capital contributions $ 26,249,420 $ 18,530,498 $ 22,890,134
Change in net position $ 31,288,597 $ 22,286,373 $ 24,991,925
Net position: beginning of year $ 327,637,753 $ 354,884,405 $ 377,170,778
Restatement of contributed assets – – $ 30,124,779
Change in accounting principle $ -4,041,945 – –
Net position – Beginning of year, restated $ 323,595,808 – $ 407,295,557
Net position - End of year $ 354,884,405 $ 377,170,778 $ 432,287,482
Fund balance - Water – – $ 41,209,470
Fund balance - Sewer $ 576,387,935 $ 591,190,003 $ 31,334,333
Source: Comprehensive Annual Financial Reports 2015, 2016, 2017
There are seven primary criteria, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratios of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
1. 3 Year Revenue/Expenditure Budget Trends
The District fund overall has been experiencing nominal net income over the last several
years. This is attributed primarily to income from services being consistent while making
planned capital expenditures in both water and sewer systems. Appropriate rate increases
have been implemented for sewer over the prior year (2016) and the District is completing a
Cost of Service Study of water services in 2018 to accommodate increased costs and planned
expenditures into the future.
2. Ratios of Revenue Sources
The District receives approximately 90 percent of its water and sewer fund revenues from
charges and fees for services, minimal revenue from property taxes (6 percent), and about 4
percent from miscellaneous other sources. The ratios of unrestricted reserves reflect a
reasonable balance for typical enterprise fund services; this minimizes the impact that negative
economic factors might have on more elastic revenues such as property tax (property tax has
varied based upon the economic picture over the past ten years).
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3. Ratio of Reserves or Fund Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted cash reserve or fund balance the service funds
maintain in relation to the annual fund expenditures. The District’s fund balance ratio is
approximately 190 percent of annual expenditures. This fund ratio represents an excellent ratio
position and the reserve has been increasing over time.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the
District’s ability to meet debt obligations in relation to service provision expenditures. Ideally, a
ratio of ten percent or less would reflect a very stable ratio. The District’s water fund has
reasonable debt, including refinancing of prior debt to reduce long-term expenses and to pay
for needed capital projects over time. The District’s annual debt service ratio in water and
sewer enterprise funds to total expenditures is approximately four percent, a very good ratio.
The District does have several other debt issuances and collects revenue from Mello-Roos
assessments that have no impact on the enterprise funds.
5. Rate Structures
The District established water rates for five years in 2014 that have been in effect. The rate in
2018 for a ¾-inch meter is $36.46 per month. Residential users have a 4 tiered rate system
where within 1-20 HCF is $1.49; 21-50 is $1.89 and two more tiers increase beyond that.
Irrigation Users pay a flat rate of $2.16 per HCF. The District’s current water rates range from
$1.49 – $2.43 per 100 cubic feet of usage. Water service charges for water line maintenance
range from $30.54 – $36.46 for a typical residential ⅝” and ¾” size meter.
Table 68 – JCSD Water Rates*, 2015-2019
2015 2016 2017 2018 2019
Monthly service charge (¾” meter) $30.28 $30.28 $34.24 $36.46 $38.82
Commodity Quantity Charge (per month per HCF)
Tier 1: 1-20 $1.41 $1.51 $1.46 $1.49 $1.52
Tier 2: 21-50 $1.79 $1.92 $1.85 $1.89 $1.93
Tier 3: 51-100 $2.06 $2.21 $2.13 $2.18 $2.22
Tier 4 - Over 100 $2.30 $2.46 $2.38 $2.43 $2.48
*Other rates apply for potable and non-potable irrigation uses.
Sewer rates for residential vary by area where treatment is provided from a base of $25.39 per
EDU per month unless indoor use exceeds eight HCF. Commercial/industrial and other special
uses pay by water consumption based upon use and other applicable factors.
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Table 69 – JCSD Sewer Rates*, 2015-2019
2015 2016 2017 2018 2019
Monthly service charge (per EDU) $23.95 $23.95 $24.89 $25.39 $25.90
Consumption use charge rate (per HCF) $1.51 $1.61 $1.57 $1.60 $1.64
*Other rates apply for potable and non-potable irrigation uses.
6. Capital Improvement Program/Plan
The District has developed and implemented an adequate and comprehensive CIP for water,
sewer and other operating facility infrastructure improvements. The District’s current CIP
reflects approximately $34.445 million in improvements for water and sewer infrastructure and
the 2019-22 Plan includes $152.456 million in projects. JCSD maintains a consistent
investment fund in infrastructure including pipelines, reservoirs and sewer collection systems.
This reflects an ongoing investment in capital facilities.
7. Pension Liability and Other Post-Employment Benefits Liability
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and
death benefits to plan members and beneficiaries to JCSD employees. A “Classic” CalPERS
Miscellaneous member (hired prior to January 1, 2013) becomes eligible for service retirement
upon attainment of age 55 with at least five years of credited service. Public Employees'
Pension Reform Act (PEPRA) Miscellaneous members (hired on or after January 1, 2013)
become eligible for service retirement upon attainment of age 62 with at least 5 years of
service.
California law requires an annual calculation of the net pension liability and contribution for
each participating agency. This calculation is utilized by the agency to budget for and make
contributions to CalPERS toward its unfunded liability balance. In 2017, JCSD contributed
$2,037,200 toward the pension services, the full amount due. The 2016-17 CAFR contains a
detailed description of the calculation of benefit and unfunded liability.
The District also offers post-employment medical benefits to retired employees who satisfy the
eligibility rules. The District also pays a fixed contribution towards the cost of the post-
employment benefit plan for those employees who meet the required service years for
retirement from the District. The District funds the plan on a pay-as-you-go basis and
maintains reserves (and records a liability) for the difference between pay-as-you-go and the
actuarially determined cost.
For the year ended June 30, 2015, the District’s calculated liability of Other Post Employment
Benefit (OPEB) was $8,277,432 and the asset set aside was $2,324,679, a 28 percent ratio of
contribution. A comprehensive description of the OPEB Liability is contained in the annual
CAFR on the District’s website.
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Status and Opportunities for Shared Services
JCSD is a water and sewer district that serves a diverse area and with multiple types of retail
water customers. The District has undertaken a number of shared service opportunities with
other agencies, including:
• JCSD cooperates with the primary area water provider, WMWD, with planning for
emergency supply and intertie connection to share water in emergency situations.
• JCSD contracts with WRCRWA and other agencies for sewer treatment services.
• JCSD operates the Chino Basin Desalter facility which serves potable water to six
different agencies through a JPA named the Chino Basin Desalter Authority (CDA).
• JCSD also performs frontage landscape services to the City of Eastvale under an
assumed contract originally approved by the County of Riverside prior to the City’s
incorporation.
Government Structure and Accountability
JCSD is governed by a Board of Directors with five members elected by division for four-year
terms.
Table 70 – Jurupa Community Services District Board of Directors
JCSD Board Member Term Expires
Jane Anderson, President, Div. 5 2022
Richard Simmons, Vice President, Div. 4 2020
Betty Folsom, Div. 3 2022
Ken J. McLaughlin, Div. 1 2022
Betty Anderson, Div. 2 2020
The Board meets at the District Office at 11201 Harrel Street, Jurupa Valley, CA. on the
second and fourth Monday of each month at 6:00 p.m. The Board of Directors appoints a
General Manager as the Chief Administrative Officer who is responsible for managing District
operations on a day-to-day basis. The General Manager selects, appoints and manages staff
and consultants to carry out District programs and projects. The Board also appoints a legal
counsel and treasurer.
The District provides public information on its website, including information on current
projects, a history of the District, customer inquiries and FAQ’s, conservation programs, annual
budgets, and audits (CAFR). The website also includes contact information for the Board of
Directors and staff and Board meeting agendas and minutes. Other major reports are
accessible via links on the portal. A contact portal is also provided to further research District
reports and studies.
The District staff state that they work cooperatively with several cities and other water
agencies in the County and region. Based upon water rights and infrastructure resources,
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there does not appear to be increased interest in considering alternative government service
structures at this time. Additionally, District staff is aware of one project, LAFCO 2018-05-2,
which has interest in annexing to the District.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
Lake Hemet Municipal Water District (LHMWD) provides potable water, irrigation water and
sewer collection services to residents in parts of the cities of Hemet, San Jacinto and Lake
Hemet campground, and potable water to the community of Garner Valley and surrounding
unincorporated areas. The District also maintains Lake Hemet as a water reservoir and
recreational facility.
The District was formed on August 4, 1955 under the Municipal Water District Act of 1911.
There are approximately 14,566 customers within a 26-square mile service area. The LHMWD
currently serves its water customers from three main sources of supply: locally pumped
groundwater, surface water from the San Jacinto River system, and water purchases from
Eastern Municipal Water District (EMWD). Local groundwater from the Hemet and San Jacinto
Groundwater Basins is the primary potable water source. The District operates 16 wells that
provide water to the domestic water system and seven wells that supply water to the irrigation
system.
The District also leases two private wells to supplement its domestic water needs during high
demand periods. Surface water from the San Jacinto River system averages 3,600 acre-feet
per year, which is approximately 20 percent of the District’s total water supply. Most of the
surface water is used for agricultural purposes, but a portion is released for groundwater
recharge. The District can also purchase water from Eastern Municipal Water District.
The LHMWD will need additional water supplies to be able to satisfy projected growth within
the District’s service area. The District participated in the development of a comprehensive
Regional Groundwater Management Plan to plan for future groundwater supplies.
Supplemental future water supply options include a recycled water distribution system supplied
from the Eastern Municipal Water District, supplemental imported water supplies, increased
use of local surface water and demand reduction/conservation. Table 71 illustrates the
projected water supply/ demand to year 2035.
Under an adopted Water Master Plan to settle Soboba Tribal Indian Water Rights claims in
2008, Eastern MWD and the cities of Hemet and San Jacinto fund the acquisition of
supplemental surface water which can be stored underground. This also provides opportunity
to increase supply reliability.
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Exhibit 14 – Lake Hemet Municipal Water District
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Lake Hemet Municipal Water District – Agency Profile
General Information
Agency Type Municipal Water District Act of 1911; section 71000 Water Code
Date Formed August 4, 1955
Services Retail water, sewer collection, Lake Hemet Recreation
Service Area
Location Areas of cities of Hemet and San Jacinto plus unincorporated Garner Valley
Square Miles/Acres 26 SM/ 18,700 acres
Total Water/Sewer Connections Water: 14,566 Sewer: estimated 14,800
Population Served Water – estimated 58,000; Sewer – 52,000
Water Infrastructure
Facilities Lake Hemet reservoir, Little Lake reservoir; 13 wells, 7 for irrigation
Storage Capacity 11.7 MG in system
Primary Source of Supply Groundwater wells; surface or lake water when available; Imported water via Eastern MWD
connection to MWD
Water Rates (single-family home) Residential rates use a 5 tiered rate system, ranging from $1.980 to 2.499 per 100 cubic
feet of usage. Water service charges for water line maintenance range from $30.91 to
34.85 for a typical residential ⅝” and ¾” size meter. Rates are under consideration for
change by the District.
Sewer Infrastructure
Facilities Collection system to WWTP owned by Eastern MWD, WW treatment for Lake Hemet
Campground
Current and Projected Treatment Eastern MWD WWTP by agreement
Capacity
Primary Disposal Method Reclaimed water and release to stream bed
Sewer Rates (single-family home) Sewer maintenance fees for line cleaning is $4.07 per month and the EMWD sewer rates
for residential vary by area from $26.53 to $26.83 per month.
Budget Information - FY 2017-2018 (Water & Sewer Funds)
Revenues Expenditures Net Surplus/(Deficit)
Water and Sewer Fund $18,422,500 $18,221,510 $200,990
Government Fund $715,000 $715,000 -0-
Combined Funds $19,562,500 $18,990,510 $571,990
Capital Expenditures FY 2017-2018 Long-Term Planned Expenditures
$1,039,325 $655,000 - three year CIP Plan
Water and Sewer Fund Balance/ $14,335,027
Reserves
Government Balance $300,000
Agency Net Position $14,635,027
Governance
Governing Body Five member Board elected by division; the Board meets on the third Thursday each month
at 3:00 p.m. at district office at 26385 Fairview Avenue, Hemet, CA 92544
Agency Contact Michael A. Gow, 951-658-3241 mgow@lhmwd.org
Sources: 2017-18 FY Budget; 2015, 16 & 17 Audits; UWMP 2015; Questionnaire response
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Growth and Population Projections
As part of an Urban Water Management Plan Update completed in 2015, LHMMD developed
population and growth projections. The current and estimated future service population for
LHMWD is shown in Table 71.
Table 71 – LHMWD Population Projections 2015-2040
2015 2020 2025 2030 2035 2040
50,631 58,654 61,754 65,017 68,452 –
Source: UWMP (2015)
Between 2015 and 2035, the District’s service population is expected to increase in service
population by approximately 4,400 connections or 17,821 residents. The majority of this
growth is expected to be in urban area cities within the District’s service area.
Disadvantaged Unincorporated Communities (DUCs)
Riverside LAFCO has determined that there are several DUC areas within the City of Hemet
SOI and the LHMWD served area. They include:
• E. Stetson Avenue/S. San Jacinto Street
• E. Acacia Avenue
• Columbia Street/Mayberry Avenue
• So. Dartmouth Street/Mayberry Avenue
• Ridge area
• New Chicago Avenue/E. Acacia Avenue
• Mountain View MHP
• Valle Vista area
• Georgia Avenue/HWY 74 area
No specific inventory of service deficiencies has been conducted on these DUCs; however, all
have access to water from LHMWD, wastewater from Eastern Municipal Water District,
stormwater services from Riverside County Flood Control District and fire protection from
Riverside County Fire Department.
Present and Planned Capacity of Public Facilities
LHMWD utilizes water supplies from three primary sources for drinking water supply: Imported
water via Eastern MWD, groundwater wells and surface or lake water when it is available.
Imported Water (Purchased)
LHMWD purchases imported water from the Eastern MWD. Purchases may be higher during
drought conditions or when the Lake Hemet water levels are low but the District averages
between 1,000 and 1,300 af/yr.
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Groundwater
LHMWD draws on average approximately 50 to 65 percent of its water supply from its six
active domestic wells and seven active irrigation wells. LHMWD has approximately 11 MGD
production capability from all of its wells.
LHMWD extracts groundwater from two regional groundwater basins: San Jacinto
Groundwater Basin No. 8-5 and the Hemet Basins. Both basins are under the jurisdiction of a
Groundwater Management Act and adjudicated stipulated judgment with the goal of bringing
them into a balanced use manner. According to the 2015 UWMP Update, an overdraft
condition does exist, and imported water or recharging is in process to attain a balanced use in
these basins.
Table 72 – LHMWD Groundwater Production, 2011-2015
2011 2012 2013 2014 2015
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
12,345 13,709 13,055 11,648 8,249
Source: UWMP Update 2015
Surface Water
When available, the District utilizes water from Lake Hemet Reservoir, a 12,750 acre-foot lake,
releasing it to the South Fork of the San Jacinto River. Water is diverted from a diversion
structure about six miles downstream along with flows from two tributary creeks for agricultural
uses. The District has pre-1914 appropriative rights dating 1884 for Lake Hemet and other
area streams. Due to limited flows in the late 1990s, extractions and treatment for potable use
was discontinued. The District has averaged between 1,900 to 4,000 af/yr use from this
source.
Recycled Water
LHMWD does not currently have a recycled water distribution system or access to recycled
water. To the extent feasible, if and when recycled water is available to LHMWD, this water will
be offered to LHMWD customers. The District is a participant in an in-lieu agreement with
EMWD and cities of Hemet and San Jacinto to offset use of the Scott Bros. Dairy and Rancho
Casa Loma uses of approximately 8,000 af/yr to reduce groundwater pumping in the area.
Water Demand Projections
The UWMP Act requires a water retailer to quantify the minimum water supply available during
three dry years (2011 - 2013 were used in the 2015 UWMP). LHMWD’s estimated minimum
supplies are shown in Table 73 below. These supplies are based on the anticipated reliability
of imported water from Eastern Municipal Water District, local surface water, and local
groundwater.
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Table 73 – LHMWD - Minimum Supplies, 2016-2018
2016 2017 2018
(acre-feet) (acre-feet) (acre-feet)
17,800 17,800 17,800
Source: UWMP Update (2015)
Supply and Demand Assessment
Historically, there has been an increase in water use among agencies due to increased
development. Conservation efforts have proven to be effective in decreasing water use in dry
years. In the District’s recent UWMP Update, LHMWD estimated that demands could increase
ten percent during a single dry year due to some area property owners experiencing local
supply reductions. However, during a multiple dry year period, it is expected that conservation
messaging and restrictions would lead to consumption dropping back down to normal year
levels in the second dry year, and falling a further ten percent in the third dry year.
The following tables summarize the anticipated supplies and demands for a Normal or Single
dry year based upon growth forecasts for LHMWD:
Table 74 – LHMWD Normal Year Supply and Demand Projections, 2020-2035
2020 2025 2030 2035
(acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 17,800 18,320 18,880 19,410
Demand Totals 16,475 16,969 17,486 18,035
Difference 1,325 1,351 1,394 1,375
Source: UWMP Update (2015)
Table 75 – LHMWD Single Dry Year Supply and Demand Projections, 2020-2035
2020 2025 2030 2035
(acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 17,800 18,320 18,880 19,410
Demand Totals 15,865 16,369 16,869 17,456
Difference 1,935 1,951 1,984 1,954
Source: UWMP Update (2015)
Emergency Preparedness (Supply Interruption Capability)
Extended supply shortages are unlikely due to natural disasters or accidents which damage all
water sources. However, LHMWD’s emergency capability plan is to provide water via its wells
utilizing emergency generators at seven main well sites (more can be utilized if available from
vendors). This is sufficient water to meet the minimum health and safety requirements of 50
gallons per day per capita for approximately 58,000 residents. This assumes reduction in uses
and zero non-residential or landscape use.
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Under emergency power outages or a catastrophic earthquake conditions, the existing storage
is expected to provide a supply at minimum demand levels. LHMWD also has interconnection
with EMWD for emergency supplies and water available from Lake Hemet.
LHMWD has seven portable back-up generators that can be used in the event of an area-wide
power outage. These generators can be located on primary well sites to continue water
delivery.
Financial Ability to Provide Services
As of June 30, 2017, the District was able to report a positive balance in its unrestricted net
position of $10,040,508. On June 30, 2016, the balance was $12,328,414. This is a decrease
of $2,287,906. The net position of the District, the value of assets and funds on hand for
operations and capital investment, over the same period decreased $1,853,271 or
approximately 3.4 percent during a period of drought demand reduction implementation and
slightly overall less sales.
LHMWD operates its water services as enterprise funds within the confines of overall District
operations. Water sales and service charges comprise the significant majority of operating
revenues that fund the services provided for water operations and administration. On average,
the LHMWD receives approximately 9 percent of its revenues from property taxes.
Overall, the District water and CIP funds are considered stable and self-sustaining for
operational, capital and debt service activities, although some minor deficit spending has
occurred periodically due to planned capital improvement projects and conservation directed
by the state. Rate increases had been implemented over the last several years up until 2015,
and are currently under consideration for the Garner Valley community, to accommodate
expenditures for maintenance and capital improvements.
The District has adopted a comprehensive set of Financial Reserve Policies that designates
funds for various programs and long-term debts. The policy provides direction to District staff
on addressing reserves in the annual budget process and for regular update reports to the
Board of Directors. Reserves are established in 14 categories and uses:
• Restricted – Bond proceeds, debt service, and uses controlled by outside agencies or
regulations. The minimum amount established is the annual debt service requirement.
• Capital Facilities – To fund needed new or replacement facilities as identified in CIP
and FY Budgets. Minimum amount established is 100 percent of current budget plus 80
percent of the next year budget projection.
• Liquidity Funds – This includes various operating and emergency accounts to provide
funding for rate stabilization, operating reserves (to cover a maximum of 180 days of
operating expenses), and capital assets. A separate Groundwater Management
Program Reserve Account is maintained to fund water purchases for placement in
reserve.
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The District maintains a substantial reserve fund balance providing good capability to absorb
short term impacts, and is able to maintain an acceptable debt service to annual expenditure
ratio (currently 9.5).
A comparison of three years financial statistics from the published Comprehensive Audited
Financial Reports is provided below.
Table 76 – LHMWD Financial Statements, FY 2015-FY 2017
FY 2015 FY 2016 FY 2017
Operating Revenues
Water consumption sales $ 11,929,696 $ 13,951,817 $ 14,055,084
Water service charges 1,210,016 1,322,341 1,460,870
Other operating revenue 463,348 461,117 484,591
Sewer services 733,038 731,097 729,726
Total operating revenue $ 14,336,098 $ 16,466,372 $ 16,730,271
Operating Expenses
Source of supply $ 3,351,488 $ 5,709,837 $ 7,439,096
Pumping 1,421,201 1,076,394 1,248,170
Water treatment 400,422 322,747 337,627
Transmission and distribution 1,445,151 1,333,058 1,638,280
Customer accounts 166,809 163,933 232,189
Sewer 210,678 222,968 227,309
General and administrative 5,065,553 4,905,361 5,409,554
Total operating expenses 12,061,302 13,735,298 16,532,225
Operating income before depreciation 2,274,796 2,731,074 198,046
Depreciation expense $ -3,224,975 $ -3,192,673 $ -3,224,466
Operating income (loss) $ -950,179 $ -461,599 $ -3,026,420
Non-Operating Revenues (Expenses)
Property taxes $ 1,429,367 $ 1,518,239 $ 1,604,497
Net income from Lake Hemet Campground 212,560 238,071 322,578
Rental income, net 87,243 86,107 86,522
Investment earnings 48,219 117,518 60,015
Interest expense -881,390 -848,220 -813,172
Gain (loss) on asset disposal -14,106 2,681 -23,015
Other non-operating revenue, net -45,754 28,803 -127,824
Total non-operating revenues, net $ 836,139 $ 1,143,199 $ 1,109,601
Net income (loss) before capital contributions $ -114,040 $ 681,600 $ -1,916,819
Capital Contributions
Donations in aid of construction $ 34,188 $ 101,240 $ 16,147
Connection fees 15,676 20,283 47,401
Total capital contributions 49,864 121,523 63,548
Change in net position $ -64,176 $ 803,123 $ -1,853,271
Net Position
Beginning of year $ 52,784,483 $ 53,584,685 $ 54,387,808
Prior period adjustment – – –
Net position - end of year $ 52,720,307 $ 54,387,808 $ 52,534,537
Source: Comprehensive Annual Financial Reports 2015, 2016, 2017
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There are seven primary criteria, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratios of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
1. 3 Year Revenue/Expenditure Budget Trends
The District fund overall has been experiencing surplus as well as occasional deficit spending
over the last several years. However, this is attributed primarily to planned capital expenditures
and cash flows. Appropriate rate increases have been implemented for sewer over the prior
year (2016) and the District is completing a Cost of Service Study of water services in 2018 to
accommodate increased costs and planned expenditures into the future.
2. Ratios of Revenue Sources
The District receives 87 percent of its water and sewer fund revenues from charges and fees
for services, minimal revenue from property taxes (9 percent), and about 4 percent from
miscellaneous other sources. The ratios of unrestricted reserves reflect an appropriate balance
for typical enterprise fund services; this minimizes the impact that negative economic factors
might have on more elastic revenues such as property tax (property tax has varied based upon
the economic picture over the past ten years).
3. Ratio of Reserves or Fund Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted cash reserve or fund balance the service fund
maintains in relation to the annual fund expenditures. The District’s fund balance of $9,406,002
yields a ratio of approximately 80 percent of annual expenditures. This fund ratio represents an
adequate ratio position and the reserve has been increasing over time.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the
District’s ability to meet debt obligations in relation to service provision expenditures. Ideally, a
ratio of ten percent or less would reflect a very stable ratio. The District’s water fund has
reasonable debt, including refinancing of prior debt to reduce long-term expenses and to pay
for needed capital projects over time. The District’s annual debt service ratio to total
expenditures is approximately 5 percent, a very good ratio.
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5. Rate Structures
Rates for water and wastewater services were last adjusted in December 2018. The rates for
water service charges are composed of two components: a monthly fixed service charge and a
monthly variable charge based on usage. Wastewater collection fees are based on the number
of equivalent dwelling units assigned to a parcel. The District’s current rates can be found at:
https://www.lhmwd.org/files/RESOLUTION%20785.pdf.
6. Capital Improvement Program/Plan
The District has developed and implemented an adequate and comprehensive CIP for water,
sewer and campground facility infrastructure improvements. The District’s current 5-Year CIP
reflects approximately $1.7 million in improvements for water and sewer infrastructure, with
approximately $1.04 million programmed for FY 17/18. LHMWD maintains a consistent
investment in infrastructure including pipelines, reservoirs and sewer collection systems. This
reflects an ongoing investment in capital facilities.
7. Pension Liability and Other Post-Employment Benefits Liability
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and
death benefits to plan members and beneficiaries to LHMWD employees. The service
retirement benefit is a monthly allowance equal to the product of the benefit factor, years of
service, and final compensation. The final compensation is the monthly average of the
member's highest 36 full-time equivalent monthly pay. Retirement benefits for PEPRA
Miscellaneous members are calculated as a percentage of their plan based the average final
36 months compensation.
California law requires an annual calculation of the Net Pension Liability and contribution for
each participating agency. This calculation is utilized by the agency to budget for and make
contributions to CALPERS toward its unfunded liability balance. In 2016, LHMWD contributed
$545,434 toward the pension services. The 2015-16 CAFR contains a detailed description of
the calculation of benefit and unfunded liability.
The District pays a fixed contribution for post-employment medical benefits to retired
employees who satisfy the eligibility rules. (Spouses and surviving spouses are also eligible to
receive benefits but these are not provided by LHMWD.) The District also pays a fixed
contribution towards the cost of the post-employment benefit plan for those employees who
meet the required service years for retirement from the District. The District funds the plan on a
pay-as-you-go basis and maintains reserves (and records a liability) for the difference between
pay-as-you-go and the actuarially determined cost.
For the year ended June 30, 2016, the District’s net OPEB obligation amounted to $97,919. To
reduce these liabilities, the District’s annual Other Post Employment Benefit (OPEB) cost in
2016 was $18,983. A comprehensive description of the OPEB Liability is contained in the
annual CAFR on the District’s website.
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Status and Opportunities for Shared Services
LHMWD is a water and sewer district that serves a diverse area and with multiple types of
retail water customers. LHMWD has undertaken a number of shared service opportunities with
other agencies, including:
• LHMWD’s main source of water is ground and surface water supplies. LHMWD
cooperates with Eastern MWD as a supplier of supplemental water if needed. Eastern
MWD and LHMWD have an intertie connection to share water in emergency situations.
• LHMWD contracts with Eastern MWD for sewer treatment services in the cities of
Hemet and San Jacinto.
• LHMWD is a member of the Hemet San Jacinto Water Master Agreement that provides
for management and recharge of the groundwater basin.
• The District operates the Lake Hemet Campground to provide recreational opportunities
and offset some of the expenses of the dam and reservoir.
Government Structure and Accountability
LHMWD is governed by board of directors with five members elected by division for four-year
terms.
Table 77 – Lake Hemet Municipal Water District Board of Directors
LHMWD Board Member Term Expires
Div. 1 Frank D. Marshall 2022
Div. 2 Frank D. Gorman 2020
Div. 3 Todd A. Foutz 2022
Div. 4 Larry Minor 2022
Div. 5 Steven A. Pastor 2020
The Board meets at the District Office located at 26385 Fairview Avenue, Hemet, CA 92544 on
the third Thursday of each month at 3:00 p.m. The Board of Directors appoints a General
Manager as the Chief Administrative Officer who is responsible for managing District
operations on a day-to-day basis, and select, appoint and manage staff and consultants to
carry out District programs and projects. The Board also selects and hires Legal Counsel.
The District provides public information on its website at www.lhmwd.org, including information
on current projects, a history of the District, customer inquiries and FAQ’s, conservation
programs, annual budgets, and audits (CAFR). The website also includes contact information
for the Board of Directors and staff and Board meeting agendas and minutes. Other major
reports are accessible via links on the portal. A contact portal is also provided to further
research District reports and studies.
The District staff state that they work cooperatively with several cities and other water
agencies in the County and region. Based upon water rights and infrastructure resources,
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there does not appear to be increased interest in considering alternative government service
structures at this time. Additionally, District staff is not aware of any properties in the area with
interest in annexing to the District at this time.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
Rancho California Water District (RCWD/District) provides potable water, irrigation water,
recycled water, sewer collection, and treatment services to residents of the cities of Temecula
and portions of Murrieta and potable and irrigation water to some surrounding unincorporated
areas. The District also maintains Vail Lake as a water reservoir and recreational facility.
The District was formed on January 1, 1977, under the Municipal Water District Act of 1911, as
a result of the consolidation of the Rancho and Santa Rosa Districts. There are approximately
45,000 customers, a population of approximately 154,000 within a 155-square-mile service
area. RCWD currently serves its water customers from four main sources of supply: locally
pumped groundwater, surface water from the Vail Lake system, recycled water, and water
purchases from Metropolitan Water District of Southern California (MWD) through both
Eastern Municipal Water District (EMWD) and Western Municipal Water District (WMWD).
Local groundwater from the Temecula Valley Groundwater Basin is the primary potable water
source. The District operates 49 wells that provide water to the domestic and the irrigation
systems. Local groundwater supplies about 35 percent of its demands and the surface water
from the Vail Lake is approximately an additional 10 percent of the District’s total water supply,
once recharged to the groundwater basin. The District also purchases between 50 percent and
65 percent of its water from MWD, via EMWD and WMWD. The District operates a reclamation
facility and obtains recycled water for about seven percent of its uses.
RCWD will need additional water supplies to be able to satisfy projected growth within the
District’s service area. The District completed the Upper Valle De Los Caballos (VDC)
Conjunctive Use Optimization Plan, as well as the Recycled Water Resources Plan, to
optimize future groundwater and recycled water supplies, respectively. Supplemental future
water supply options include an expanded recycled water distribution system, supplemental
imported water supplies, increased use of local surface water, and demand reduction/
conservation. Table 78 illustrates the projected water supply/demand to year 2040.
Table 78 – Normal Year Supply and Demand Comparison, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 93,414 99,660 102,639 104,410 106,986
Demand Totals 82,244 89,174 93,651 96,964 100,307
Difference 11,170 10,486 8,988 7,446 6,679
Source: UWMP Update (2016)
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Exhibit 15 – Rancho California Water District
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Rancho California Water District - Agency Profile
General Information
Agency Type California Water District Water Code 34000
Date Formed January 1, 1977
Services Potable and Recycled Water, Wastewater collection and treatment
Service Area
Location City of Temecula and part of City of Murrieta
Square Miles/Acres 155 Sq. Miles/99,141 acres
Total Water/Sewer Connections Water: Rancho Division 36,336 meters
Water: Santa Rosa Division 8,293 meters
Sewer: 8,321 Equivalent Dwelling Units (EDUs)-RCWD only
Population Served Approximately 154,400
Water Infrastructure
Facilities Four connections to WMWD and EMWD; 974 miles of pipeline, 49 wells, 39 reservoir tanks;
recycled system – 71 miles of pipe, 4 tanks
Storage Capacity 1,433 AF recycled, plus open storage in Vail Lake of 45,000 AF
Primary Source of Supply Imported water from MWD (50% to 65%), supplemented by groundwater (35%), recycled water
(7%), and releases from surface water (Vail Lake) to groundwater (10%)
Water Rates (single-family home) Rancho Division – Service Charge ¾” - $22.11/month
(adopted FY 2018-2019) Res./Multi Fam./Landscape Commodity – 4 tiers from $0.710 to $7.070 HCF
Commercial/Indus./Ag. Commodity – 3 tiers from $1.300 to $7.070
Santa Rosa Division – Service charge ¾” - $41.80/month
Res./Multi Fam./ Landscape Commodity – 4 tiers from $1.220 to $7.210 HCF
Commercial/Indus./Ag. Commodity – 3 tiers from $1.940 to $7.210
Sewer Infrastructure
Facilities 54.1 miles of pipes/2 sewer lift stations
Current and Projected Treatment SRWRF – average of 1.316 MGD, with maximum capacity of 2.0 of the 5.0 MGD for SRRRA
Capacity Facility (renamed recently)
Primary Disposal Method Tertiary treatment – use for irrigation
Sewer Rates (single-family home) $42.50 per month, per EDU
(adopted FY 2018-19)
Budget Information - FY 2018-2019 Operating (Water & Sewer Funds)
Revenues Expenditures Net Surplus/(Deficit)
Water Fund – Rancho Division $41,173,229 $41,028,284 $144,945
Water Fund – Santa Rosa Division $34,639,128 $32,911,308 $1,727,820
Sewer Fund $2,714,231 $2,821,729 $-107,498
Combined Funds $78,526,588 $76,761,322 $1,765,266
Budget Information - FY 2018-2019 Non-Operating (Water & Sewer Funds)
Revenues Expenditures Net Surplus/(Deficit)
Water Fund – Rancho Division $41,799,490 $26,459,247 $15,340,243
Water Fund – Santa Rosa Division $18,250,666 $18,353,845 $-103,179
Sewer Fund $2,092,737 $2,320,193 $-227,456
Long-Term Capital Expenditures $649,902,275 (FY 2018-2019 – 2037-2038)
Water Fund Balance –
Sewer Fund Balance –
Agency Net Position $540,278,132 - Water and Sewer Total Net Position Consolidated in FY 2017-2018 CAFR
Governance
Governing Body Seven-member Board elected at-large, meets second Thursday of each month at 8:30 a.m. at
the District Headquarters, 42135 Winchester Road, Temecula, CA
Agency Contact Jeff Armstrong (951) 296-6900, armstrongj@ranchowater.com
Sources: FY 2017-2018 CAFR, FY 2018-2019 Adopted Budget, FY 2018-2019 5-Year CIP
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Growth and Population Projections
As part of an Urban Water Management Plan (UWMP) Update completed in 2016, RCWD
developed population and growth projections. The current and estimated future service
population for RCWD is shown in Table 79 below.
Table 79 – RCWD Population Projections, 2015-2040
2015 2020 2025 2030 2035 2040
148,105 154,222 158,070 162,015 166,058 170,201
Source: UWMP (2016)
Between 2015 and 2040, the District’s service population is expected to increase by
approximately 5,700 connections, or 22,096 residents. The majority of this growth is expected
to be in the two cities (Murrieta and Temecula) within the District’s service area.
Disadvantaged Unincorporated Communities (DUCs)
Riverside LAFCO has determined that there are no DUC areas within the District boundaries
nor have any DUCs been identified within or adjacent to the District’s SOI areas.
Present and Planned Capacity of Public Facilities
The District currently obtains its water supplies from the following primary water sources:
1) local groundwater from the Temecula Valley Groundwater Basin; 2) imported State Water
Project and Colorado River water from MWD, via EMWD and WMWD; 3) recycled water from
both the District and EMWD; and 4) local surface water from Vail Lake.
Imported Water (Purchased)
Imported water is acquired from the member agencies of the MWD. For the District, its
member agencies are WMWD for the Santa Rosa Division and EMWD for the Rancho
Division. Imported water provided to the District is from MWD’s Lake Skinner Reservoir and
Water Treatment Facility, with back-up storage provided by Diamond Valley Lake. MWD has
six pipeline facilities that depart from MWD’s Lake Skinner Reservoir and Water Treatment
Facility and convey water south toward San Diego County. The District’s connection point on
MWD’s pipeline facilities are identified as turnout facilities and are labeled WR for WMWD and
EM for EMWD. Untreated water is delivered to the District from MWD‘s Pipeline No. 5 through
turnout WR-34 and Pipeline No. 6 through turnout EM-21. Untreated water from EM-21 is
conveyed through the Pauba Valley Transmission Main in De Portola Road to the District’s
Recharge and Recovery System. Untreated water from WR-34 is conveyed through an outfall
pipeline to release makeup water into the Santa Margarita River at the Gorge, pursuant to the
Cooperative Water Resource Management Agreement. As such, WR-34 is not directly utilized
to meet water demands for potable water deliveries. The District also purchases excess water
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from MWD, when available, for recharge of the Pauba Valley Basin, through the Cyclic
Storage Program.
Groundwater
Groundwater pumping has historically provided a significant portion of the overall District water
demand. The District receives groundwater from the Temecula Valley Groundwater Basin, as
identified in California’s Groundwater Bulletin 118. The Basin underlies several valleys in
southwestern Riverside County and a portion of northern San Diego County, within the Santa
Margarita River Watershed.
In addition to the District, other agencies pump water from the basins, including WMWD,
Pechanga Band of Luiseño Mission Indians (Pechanga), and other private pumpers.
Accounting for these users, the total natural yield available to the District varies, and is
estimated to average approximately 17,000 acre-feet per year (AFY) - 25,000 AFY.
The District is working in cooperation with the Santa Margarita River Watershed Watermaster
and multiple stakeholders to achieve water supply reliability, water quality, and watershed
management goals for the Upper Santa Margarita River Watershed. The District’s
Recommended Groundwater Production report is an annual audit prepared for the District to
recommend a groundwater production program for the upcoming fiscal year (FY).
The Recommended Groundwater Production report was last developed in January 2018 for
production recommendations for FY 2018-2019. The recommended groundwater production
program involves the operation of the groundwater basin within safe yield limits, so as not to
create permanent overdraft or other undesirable conditions that could degrade water quality or
violate legal restrictions. Information includes discussion of previous audits, instantaneous
yield, natural and artificial recharge, water quality, pump settings, and well construction factors.
The annual supply capacity of the District’s groundwater sources is limited by the natural yield
of the groundwater basin, in conjunction with the artificial groundwater recharge the District
achieves at the VDC recharge basins. The District evaluates each groundwater well, based on
hydro geologic subunit and aquifer, to determine an annual pumping budget.
In addition to the extraction of the natural yield of the basins, the District artificially recharges
the Pauba Valley Basin with untreated imported water for enhanced groundwater production.
The District’s VDC Recharge/Recovery Facility (VDCR/RF) features two groundwater recharge
sites: the Upper VDC in the easternmost area of the Pauba Valley and the Lower VDC,
approximately two miles to the west. Untreated MWD water and/or Vail Lake surface water are
introduced into the VDCR/RF infiltration ponds for recharge into the ground. Over the past 10
years, this supplemental water provided an average of approximately 13,000 AFY of artificial
groundwater recharge through the VDC recharge basins.
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Table 80 – RCWD Groundwater Production, FYs 2014-2018
2014 2015 2016 2017 2018
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
39,785 37,279 33,941 30,628 31,752
Source: UWMP Update (2016)
Surface Water
The District owns and operates one surface water reservoir, located approximately 10 miles
east of Temecula, having a watershed area of 318 square miles. The primary purposes of Vail
Lake are water supply and recreation. The District purchased the reservoir and upstream lands
with water rights in 2014.
The State Water Resources Control Board (SWRCB) issued an appropriation permit (No.
7032) in 1948 and amended the permit in 2009. Permit No. 7032 grants an appropriate
storage right of 40,000 AFY from November 1 to April 30, points of diversion and re-diversion,
and place and purpose of use. During these months, water releases from Vail Lake are
discharged into either outfall piping that conveys the flows directly to the Upper VDC
groundwater recharge site, or the Temecula Creek. Flows to the Temecula Creek either
percolate into the groundwater basin or continue downstream to the Santa Margarita River,
and ultimately the Pacific Ocean. The contribution of the Vail Lake water supply is reflected in
the native groundwater produced from the Temecula Valley Groundwater Basin.
The District completed the Vail Lake Transmission Main, Pump Station, and Quagga Mussel
Control Facilities in 2013. These facilities allow the District to acquire imported water from
MWD for storage in Vail Lake.
Vail Dam is operated under an Interim Operation Restriction Plan (IORP), as submitted to the
Division of Safety of Dams (DSOD) in 2014. The spillway elevation for Vail Dam is 1472.59 ft
(NAVD88), the maximum operating level under the IORP is 1457.6 ft. (NAVD88). The dam has
a maximum height of 152 feet from the dam crest to the lowest point in the foundation.
Since completion of Vail Dam in 1949, the spillway has only overflowed twice—in 1980 and
1993. As of this date, the District has not stored any imported water from MWD into Vail Lake.
The average annual yield over the past 5 years is 1,843 AFY. There have been several years
where the annual yield was 0 AFY, and with a maximum yield of 35,552 AFY in 1993
(excluding releases from the overflow spillway).
Vail Lake is currently free of invasive species such as quagga or zebra mussels. The water
quality in Vail Lake varies depending on the quantity of inflow, the lake water depth, and
upland activities that contribute to sedimentation and pollutant loading.
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Recycled Water Supply
RCWD began using recycled water in 1990 for irrigation and has expanded the use of recycled
water over the past 30 years to serve approximately 3,800 AFY of recycled water for
landscape irrigation, Santa Rosa Water Reclamation Facility (SRWRF) plant uses, and limited
commercial uses.
Recycled water used by the District is produced at the SRWRF and is purchased from
EMWD’s Temecula Valley Regional Water Reclamation Facility (TVRWRF). The Santa Rosa
Regional Resources Authority (SRRRA) comprises three member agencies: WMWD, Elsinore
Valley Municipal Water District (EVMWD), and RCWD, all of which generate wastewater that is
ultimately treated at the SRWRF. Both the TVRWRF and the SRWRF produce disinfected
tertiary recycled water meeting the State of California Title 22 regulations for unrestricted non-
potable reuse. The District currently receives supplies to meet its demands of 3,800 AF from
these two sources, and anticipates that it will have excess recycled water available. The
amount of surplus recycled water is expected to increase to 4,300 AFY in 2070, for a total
estimated supply of approximately 8,100 AFY.
Recycled Water System
The District’s recycled water distribution system provides water through four pressure zones
(PZ) ranging from 1181 to 1481 feet. Recycled water is conveyed from the forebay to either
the 1181 or 1381 PZ, via the Elm Street No. 2 or Elm Street No. 3 Pump Stations, respectively.
With the exception of Superior Ready Mix, recycled water within the District is utilized solely for
outdoor irrigation.
Water is delivered from the 1181 PZ to the 1481 PZ, via the Cole Creek Pump Station, and
from the 1381 PZ to the 1441 PZ, via the Redhawk Pump Station. Water in the 1181 PZ can
be also be stored in the Cole Creek Storage Pond, and transferred back into the 1181 PZ, via
the Cole Creek Transfer Pump Station. The District operates six recycled water pump stations
and five active recycled groundwater production wells. The District maintains four recycled
water storage reservoirs, with a combined capacity of 7.5 million gallons (MG). The District
owns six recycled water storage ponds, with a total of 1,495 AFY of storage, including the Cole
Creek Storage Pond. The recycled water system includes 58.9 miles of water pipelines that
convey water from its source to water customers.
Water Demand Projections
The UWMP Act requires a water retailer to quantify the minimum water supply available during
the years 2016 to 2018, assuming years 2016 to 2018 repeated the driest three-year historic
sequence for each water supply source. RCWD’s estimated are shown in Table 81, below.
These supplies are based on the anticipated reliability of imported water, local surface water,
and local groundwater.
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Table 81 – RCWD - Minimum Supplies, 2016-2018
2016 2017 2018
(acre-feet) (acre-feet) (acre-feet)
85,385 74,246 72,770
Source: UWMP Update (2015)
Supply and Demand Assessment
Historically, there has been an increase in water use among agencies similar to RCWD due to
increased development. Conservation efforts have proven to be effective in decreasing water
use in most dry years. Additionally, the District has enacted a Water Shortage Contingency
Plan that includes increased levels of conservation and water budget reductions in certain
stages. In the District’s recent UWMP 2015 Update, RCWD estimated that demands could
increase five percent during a single-dry year due to some area property owners experiencing
local supply reductions; however, during an extended multiple-dry year period, it is expected
that conservation messaging and the Water Shortage Contingency Plan would lead to
consumption dropping back down to, or below, normal-year levels after the third dry year.
The available supplies and water demands for the District’s water service area have been
analyzed to assess the District’s ability to satisfy demands during three hydrologic scenarios: a
normal water year, single-dry water year, and multiple-dry water years. Based on historical
supply reliability data consistent with MWD, the District has identified supply reliability for
imported water as 100% of normal water-year supply and the first three multiple-dry water
years.
The following tables summarize the anticipated supplies and demands for a normal or single-
dry year, based upon growth forecasts for RCWD.
Table 82 – RCWD Normal Year Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 93,414 99,660 102,639 104,410 106,986
Demand Totals 82,244 89,174 93,651 96,964 100,307
Difference 11,170 10,486 8,988 7,446 6,679
Source: UWMP Update (2016)
Table 83 – RCWD Single-Dry Year Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 93,414 99,660 102,639 104,410 106,986
Demand Totals 86,017 93,092 97,716 101,175 104,681
Difference 7,397 6,568 4,924 3,235 2,305
Source: UWMP Update (2016)
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Wastewater Collection and Treatment
RCWD has provided sewer services since before its origin from the consolidation of the two
original water districts in 1977. With the fast development of the Temecula Valley area, sewer
service has undergone expansion and change to accommodate development and financing of
major facilities, and also to better utilize the effluent produced from reclamation plants.
Wastewater in the upper Santa Margarita Watershed is collected by a sewer system in the
more densely-populated areas and by septic systems in the rural areas. The District and
EMWD collect all wastewater within the District’s water service area. Wastewater collected by
the District is conveyed to a collection system owned and operated by the SRRRA. The
SRRRA collection system also conveys flow from EVMWD and WMWD, for ultimate treatment
at the SRWRF, which is owned by the SRRRA and operated through contract with the District.
Wastewater collected by EMWD is treated at the TVRWRF.
Santa Rosa Water Reclamation Facility (SRWRF) and Santa Rosa Regional Resources
Authority (SRRRA)
The SRWRF has a current capacity of 5 million gallons per day (MGD), or approximately
5,598 AFY. RCWD currently owns capacity for 2 MGD, but averages 1.316 MGD. The
District has plans to participate in expansion of the plant when deemed needed for the
region. The plant collects flow from areas within portions of the District’s service area,
plus from WMWD and EVMWD. The SRRRA, a Joint Powers Authority, formed by
RCWD, EVMWD, and WMWD in 2015, owns the SRWRF, as well as over 17 miles of
gravity mains and the Cal Oaks Lift Station. The SRWRF, gravity mains, and lift station
are operated under contract by RCWD. SRRRA purchased the SRWRF from RCWD in
August 2017.
The average daily wastewater treated at the SRWRF in FY 2017 was 2.5 MGD, with all of
the recycled water produced at this plant reused. Seasonal storage ponds near the
SRWRF, as well as the Cole Creek Storage Ponds, store effluent during the winter
months (low demand period) to prevent discharges and provide reclaimed water supply
to meet peak summer demands. The current pond storage capacity is 1,495 AF.
Temecula Valley Regional Water Reclamation Facility (TVRWRF)
The TVRWRF, operated by EMWD, treats wastewater from a service area that includes
the “Golden Triangle” region between Interstates 15 and 215, the Murrieta Hot Springs
area, and portions of the Rancho Division in the northern section of the District. The
TVRWRF also receives and treats wastewater generated within the WMWD and EVMWD
service areas.
The total wastewater treated at the TVRWRF in FY 2014-2015 was 15,088 AFY, or
13,500,000 gallons per day (GPD). Recycled water produced and distributed totaled
14,650 AFY, or 97 percent of wastewater arriving at the facility. Effluent from the
TVRWRF is conveyed to onsite storage ponds prior to distribution. There are 225 MG of
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temporary onsite storage capacity. When additional storage is required, recycled water is
conveyed to 450 MG storage ponds located 10 miles north in Winchester, providing
recycled water supply for irrigation users along the way. When the ponds are full or there
is not enough demand, the effluent may be discharged to Temescal Creek, a tributary of
the Santa Ana River, for ultimate disposal to the Pacific Ocean. Recycled water produced
by the TVRWRF is currently distributed to a variety of users in the District’s service area.
Emergency Preparedness (Supply Interruption Capability)
Extended supply shortages are unlikely due to natural disasters or accidents that damage all
water sources, except in the event of a major earthquake. The District has developed an
Emergency Response Plan (ERP) that will be activated, as needed, up to requesting regional
or statewide assistance. However, RCWD’s emergency capability plan is to provide water via
its wells, utilizing emergency generators at most of the main well sites. This would provide
sufficient water to meet the minimum health and safety requirements of 50 GPD, per capita, for
approximately 150,000 residents. This assumes reduction in uses and zero non-residential or
landscape use.
Under emergency power outages or a catastrophic earthquake condition, the existing storage
is expected to provide a supply at minimum demand levels. RCWD has portable back-up
generators and contractors on standby status that can be used in the event of an area-wide
power outage. These generators can be located on primary well sites to continue water
delivery.
Financial Ability to Provide Services
As of June 30, 2018, the District reported that all non-capital assets in net position were
designated as restricted to specific purposes and therefore there were no unrestricted funds.
The restricted funds totaled $198,190,679, a decrease of ($18,313,073) over the prior year.
The net position of the District, the value of assets, and funds on hand for operations and
capital investment was reported as $540,278,132, a decrease of ($18,313,073), or 3 percent
less than the prior year.
RCWD operates its water and sewer services as enterprise funds within the confines of overall
district operations. Water sales and service charges comprise the significant majority of
operating revenues that fund the services provided for water operations and administration.
The same situation exists for the sewer operations. On average, the RCWD receives
approximately 38 percent of its revenues from property taxes. The District utilizes these funds
primarily for capital improvements and debt service for new facilities.
Overall, the District water, sewer, and Capital Improvement Project (CIP) funds are considered
stable and self-sustaining for operational, capital, and debt service activities, although some
minor deficit spending has occurred periodically due to planned capital improvement projects
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and conservation directed by the state. Rate increases have been implemented over the last
several years to accommodate expenditures for maintenance and capital improvements.
The District adopted a comprehensive Cash Reserve Policy in December 2016 that designates
funds for various programs and long-term debts. The policy provides direction to District staff
on addressing reserves in the annual budget process and for regular update reports to the
Board of Directors. Reserves are established in 14 categories and uses:
• Operating reserve – funds to ensure adequate cash flow in the event of extraordinary
expenses or reduction in revenues
• Debt Reserve – To fund payment of principal and interest for facilities, as identified in
CIP and FY Budgets
• Capital Facilities Reserve – For payment of costs for new facilities required for current
and planned services
• Replacement Reserve – Funds to replace aging facilities, as planned in the 5-Year CIP
The above reserves include various operating and emergency accounts to provide funding for
rate stabilization, operating reserves (to cover a maximum of 180 days of operating expenses),
and capital assets. A comparison of three years of financial statistics from the published
Comprehensive Audited Financial Reports is provided below:
Table 84 – RCWD Financial Statements, FY 2016-FY 2018
FY 2016 FY 2017 FY 2018
Operating Revenues
Water consumption sales $ 41,186,510 $ 35,874,759 $ 41,991,147
Water availability charges 17,614,066 18,422,237 18,557,377
Other services, including sewer service 8,534,085 9,135,281 8,528,673
Total operating revenue $ 67,344,661 $ 63,432,277 $ 69,077,197
Operating Expenses
Source of supply $ 34,126,202 $ 40,309,186 $ 46,121,701
Pumping 3,554,038 3,470,017 3,494,391
Water treatment 1,794,705 1,200,766 1,454,567
Transmission and distribution 6,767,849 6,429,382 7,553,699
Depreciation expense 25,680,902 27,070,090 23,954,236
Reclaimed water 2,029,818 2,151,487 1,924,520
General and administrative 9,036,179 9,755,193 11,381,543
Other 5,246,377 4,098,091 3,916,189
Total operating expenses $ 88,236,070 $ 94,484,212 $ 99,800,846
Operating income (loss) $ -20,901,409 $ -31,051,935 $ -30,723,649
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FY 2016 FY 2017 FY 2018
Non-Operating Revenues (Expenses)
Property taxes and assessments $ 40,918,313 $ 42,561,594 $ 44,341,998
Net loss from Vail Lake properties -639,246 -305,316 -303,856
Investment earnings (loss) 7,781,877 -330,531 347,977
Intergovernmental 2,297,590 2,398,160 2,416,436
Change in investment in joint venture 0 0 -1,270,350
Interest expense -16,383,493 -14,370,849 -12,838,733
Other 6,378,694 1,849,843 4,420,763
Total non-operating revenues, net $ 40,353,735 $ 31,802,901 $ 37,114,235
Net income (loss) before capital contributions $ 19,452,326 $ 750,966 $ 6,390,586
Capital Contributions
Capacity fees $ 1,341,570 $ 638,838 $ 1,167,560
Developer contributi ons 960,552 984,998 862,064
Capital grants 1,183,135 13,942 1,083,710
Total capital contributions $ 3,485,257 $ 1,637,778 $ 3,113,334
Special Item – – -12,627,773
Change in net position $ 22,937,583 $ 2,388,744 $ 3,123,853
Beginning of year $ 533,264,878 $ 556,202,461 $ 543,401,985*
Net position - end of year $ 556,202,461 $ 558,591,205 $ 540,278,132
Source: Comprehensive Annual Financial Reports 2016, 2017, 2018
*Restated, see FY 2017-2018 CAFR, Note 15 for more information
The spendable fund balance is $27,442,612. Other funds have been restricted for CIP and
debt service.
There are seven primary criteria, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratios of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
1. 3-Year Revenue/Expenditure Budget Trends
The District fund overall has been experiencing surplus revenues over expenses, as well as
occasional deficit spending over the last several years; however, this is attributed primarily to
planned capital expenditures and cash flows. Appropriate rate increases have been
implemented for water and sewer over prior years, utilizing a cost of service analysis to have
services funded by fees and charges.
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2. Ratios of Revenue Sources
The District receives 56 percent of its water and sewer fund revenues from charges and fees
for services, substantial revenue from property taxes (38 percent), and about 6 percent from
miscellaneous other sources. The ratios of designated reserves and funds reflect an
appropriate balance for typical enterprise fund services; this minimizes the impact that
negative economic factors might have on more elastic revenues, such as water sales and
property tax (property tax has varied based upon the economic picture over the past ten
years).
3. Ratio of Reserves or Fund Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted or restricted cash reserve or fund balance the service
fund maintains in relation to the annual fund expenditures. The District’s fund balance ratio is
approximately 174 percent of annual expenditures. This fund ratio represents an adequate
ratio position and the designated reserves have been increasing over time, other than the
reduction due to purchase of lands surrounding Vail Lake.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the
District’s ability to meet debt obligations in relation to service provision expenditures. The
District’s water and sewer divisions have reasonable debt, including refinancing of prior debt to
reduce long-term expenses and to pay for needed capital projects over time. The District’s
annual debt service ratio to total expenditures for both its water and sewer divisions is
approximately 15 percent. Excluding the sewer division, the District’s water divisions have an
annual service ratio to total expenditures of 16 percent.
The debt service coverage ratio is the ratio of revenue to cover the payment of an agency’s
principal and interest debt service obligations. The District’s goal is to maintain a ratio of 2.00.
For FY 2017-2018, the District exceeded that goal with a debt service coverage ratio of 2.81.
The District’s current credit rating with Standard & Poor’s and Fitch is AAA, which is
considered the highest credit rating assigned by both of these credit rating agencies.
5. Rate Structures
The District raised water rates annually to keep pace with costs and rate adjustments,
including Consumer Price Index adjustments. In the Rancho and Santa Rosa Divisions,
residential, multi-family, and landscape customers use a 4-tiered rate system. Customers also
pay energy costs for pumping in several zones. The District’s Rancho Division water
commodity rates changed effective July 1, 2018 and range from $.710 (Tier 1 - Indoor use) to
$7.070 (Tier 4 - Wasteful use) per 100 cubic feet of usage. Water service charges for water
availability range from $22.11 to $32.34 for a typical ¾” and 1” size meter. Commercial and
recycled customers have separate rates. The Santa Rosa Division water commodity rates
range from $1.220 (Tier 1 - Indoor use) to $7.210 (Tier 4 - Wasteful use) per 100 cubic feet of
usage. Water service charges for water availability range from $41.80 to $63.10 for a typical
¾” and 1” size meter.
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The sewer fee for the RCWD-served area is $42.50 per equivalent dwelling unit (EDU) per
month, and the EMWD (eastern area of the District) sewer rate is $32.92 per EDU, per month.
Current rates in detail are available on the District website: ranchowater.com.
6. Capital Improvement Program/Plan
The District developed and implemented a comprehensive CIP for water, recycled, and sewer
infrastructure improvements. The District’s current 5-Year CIP reflects approximately $117.5
million in improvements for water, wastewater infrastructure, with approximately $13.51 million
programmed for FY 2018-2019. RCWD maintains a consistent investment in infrastructure,
including wells, pipelines, reservoirs, and sewer systems. This reflects an ongoing investment
in capital facilities. Major capital projects for the next five years are shown in Table 85 below.
Table 85 – RCWD Major Capital Projects, FY 2018-2019 – FY 2022-2023
Santa Rosa
Rancho Division Division General Benefit Wastewater
Year Project Description Improvements Improvements Improvements Improvements
2018/19 Reservoir Recoating $1.625M $ .960M – –
2018/19 Distribution System Upgrades $5.525M – – –
2018/19 Recycled Facilities $.900M – – –
2018/19 Total Projects $8.050M $.960M – –
2019/20 Reservoir Recoating $.155M $1.545M – –
2019/20 Distribution System Upgrades $1.460M – – –
2019/20 Well Construction – – $4.600M –
2019/20 Vail Dam Modifications – – $1.000M –
2019/20 Wastewater Collection – – – $0.075M
2019/20 Total Projects $1.615M $1.545M $5.600M $0.075M
2020/21 Reservoir Recoating $1.740M $ .825M – –
2020/21 Reservoir Construction $1.600M – – –
2020/21 Pump Station Expansion $ .650M – – –
2020/21 Pipelines $8.450M $3.340 M – –
2020/21 System Studies $.400M $.300M $0.850M –
2020/21 Vail Damn Modifications – – $1.500M –
2020/21 Total Projects $12.840M $4.465M $2.350M –
2021/22 Reservoir Recoating $0.900M $0.180M – –
2021/22 System Projects $10.750M $5.305M – –
2021/22 General Resource Projects – – $11.850M –
2021/22 Total Projects $11.650M $5.485M $11.850M –
2022/23 Reservoir Recoating $0.155M $1.000M – –
2022/23 System Projects $3.750M $8.525M – –
2022/23 General Resource Projects – – $13.530M –
2022/23 Total Projects $3.905M $8.625M $13.530M –
Source: FY 2018-2019 Budget
7. Pension Liability and Other Post-Employment Benefits Liability
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and
death benefits to plan members and beneficiaries to RCWD employees. A “Classic” CalPERS
Miscellaneous member (hired prior to January 1, 2013) becomes eligible for service retirement
upon attainment of age 55, with at least five years of credited service. Public Employees'
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Pension Reform Act (PEPRA) Miscellaneous members (hired on or after January 1, 2013)
become eligible for service retirement upon attainment of age 62, with at least five years of
service.
California law requires an annual calculation of the net pension liability and contribution for
each participating agency. This calculation is utilized by the agency to budget for and make
contributions to CALPERS toward its unfunded liability balance. In FY 2017-2018, RCWD
contributed $4,612,858 toward the pension services. The 2017-2018-17 CAFR contains a
detailed description of the calculation of benefit and unfunded liability.
The District also offers post-employment medical benefits to retired employees who satisfy the
eligibility rules. Spouses and surviving spouses are also eligible to receive benefits. The
District also pays a fixed contribution toward the cost of the post-employment benefit plan for
those employees who meet the required service years for retirement from the District. The
District funds the plan on a pay-as-you-go basis and maintains reserves (and records a
liability) for the difference between pay-as-you-go and the actuarially determined cost.
For the year ended June 30, 2018, the District’s net Other Post Employment Benefit (OPEB)
obligation amounted to $9,406,148. To reduce these liabilities, the District’s annual OPEB cost
in FY 2017-2018 was $1,000,509. A comprehensive description of the OPEB Liability is
contained in the annual CAFR on the District’s website.
Status and Opportunities for Shared Services
RCWD is a water and sewer district that serves a diverse area, with multiple types of retail
water and sewer customers. RCWD has undertaken a number of shared service opportunities
with other agencies, including the following:
• RCWD cooperates with the primary water provider, WMWD, as well as EMWD, with
supply and intertie connections to share water in emergency situations.
• RCWD provides maintenance and meter reading services to WMWD in the Rainbow
and Rock Mountain areas under a cooperative agreement since 2005.
• RCWD participates in a Joint Powers Authority (JPA), SRRRA, with EVMWD and
WMWD, for sewer treatment services at the SRWRF.
• RCWD and EMWD are members of the Western Riverside Water and Wastewater
Financing Authority (WRWW), a Joint Powers Agreement that provides for the JPA to
purchase obligations of the members or loan funds to a member. The JPA has not
financed any public improvements as of June 30, 2017.
• The District owns Vail Lake and contracts to provide recreational opportunities and
offset some of the expenses of the dam and reservoir.
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Government Structure and Accountability
RCWD is governed by a seven-member Board of Directors (Board) elected at-large for four-
year terms.
Table 86 – Rancho California Water District Board of Directors
RCWD Board Member Term Expires
Bill J. Wilson - President 2020
Danny J. Martin – Senior Vice President 2020
Lisa D. Herman – Vice President 2020
Angel Garcia – Vice President 2022
Carol Lee Brady - Vice President 2022
William E. Plummer – Vice President 2022
John V. Rossi - Vice President 2020
The Board meets at the District office located at 42135 Winchester Road, Temecula, CA
92590, on the second Thursday of each month, at 8:30 a.m. The Board appoints a General
Manager, as the Chief Administrative Officer, who is responsible for managing District
operations on a day-to-day basis, and selecting, appointing, and managing staff and
consultants to carry out District programs and projects. The Board also appoints a Legal
Counsel and Treasurer.
The District provides public information on its website at www.ranchowater.com, including
information on a history of the District, current projects, water and sewer information, customer
inquiries and FAQ’s, conservation programs, annual budgets, and audits (CAFR). The website
also includes contact information for the Board and staff, as well as Board meeting agendas
and minutes. Other major reports are accessible via links on the portal. An online Document
Center is also provided to further research District reports and studies.
The District staff state that they work cooperatively with several other water agencies and
cities in the county and region. Based upon water rights and infrastructure resources, there
does not appear to be increased interest in considering alternative government service
structures at this time. Additionally, District staff is aware of and provided information on a
number of properties in the area with interest in annexing to the District at this time. The
District has agreed to participate along with the City of Murrieta and several local water
agencies for a LAFCO-coordinated special study of water service to the Murrieta retail area.
The Rainbow Service Area (545 acres) and Rock Mountain Area (1,355 acres) are located in
the Western Municipal Water District (WMWD) service area south of the City of Temecula.
WMWD does not have the infrastructure in that area to deliver retail service water. WMWD has
contracted with the RCWD since January 2005 to provide metering and maintenance service
to these areas totaling 48 connections, an estimated population of 95 with an average of 34
acre-feet per year. The water supply to the Rock Mountain area is provided by RCWD and the
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Rainbow area water supply is provided directly through a WMWD connection to a MET supply
pipeline.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
The Rubidoux Community Services District (RCSD) was organized in 1952 in accordance with
the State of California Community Services District Law (Government Code §61000 et seq.)
for the purpose of providing various public services to portions of Jurupa Valley, including
water resources and to construct, operate, maintain, repair, and replace water and wastewater
system facilities as needed to provide water service in compliance with applicable standards
and regulations. The District also provides fire protection, solid waste, weed abatement and
street lighting services.
The District’s primary service area is within Riverside County and approximately 128 acres in
San Bernardino County. The District is located in north Riverside County and is bounded by
San Bernardino County on the north, the Jurupa Mountains and Pedley Hills on the northwest,
unincorporated areas of Jurupa on the west, the Santa Ana River on the south and the City of
Riverside on the east. The District's current boundaries, which are shown in Exhibit 16,
encompass an area of approximately 7.7 square miles with approximately 7.5 square miles in
County of Riverside. The ground surface elevations within the District's service area range
from approximately 760 feet to 1,250 feet above sea level.
The District’s only water source is the local Riverside Basin as no imported water supply is
readily accessible. RCSD's groundwater supply is extracted from the Upper Santa Ana Valley
Groundwater Basin which underlies the Upper Santa Ana River Watershed. RCSD produced
approximately 7.800 acre-feet of water in fiscal year 2015-16 while transferring 1,837 AF to
Jurupa CSD and system losses resulting in 4,146 of deliveries to customers. The District
provides water services to approximately 6,250 residential, commercial, and irrigation
connections and 33,441 population. Residential customers make up approximately 94 percent
of the District’s customer base and consume approximately 76 percent of the water produced
annually by the District. The District is a regional leader in promoting water conservation and
continuing to make investments in Conservation and Outreach programs to ensure compliance
with State mandates and encourages customers to use water efficiently.
The District’s sewer treatment is provided by the City of Riverside under a contract since
May 4, 1978, to provide primary and secondary wastewater treatment. Through its network of
three pumping stations, 370,000 linear feet of pipeline, and other conveyance facilities, the
District conveys wastewater from the District’s Jurupa Valley area to the City of Riverside
Regional Treatment Plant under the 1978 agreement. The District currently owns 3.005 million
gallons per day (MGD) of treatment capacity within the City of Riverside plant and in 2017
discharged approximately 2.0 MGD to the Riverside Treatment Plant. Since the treatment is
provided outside the RCSD area, no recycled water supply is currently available for
consideration.
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Exhibit 16 – Rubidoux Community Services District
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Rubidoux Community Services District - Agency Profile
General Information
Agency Type Community Services District Act Gov. Code 61000 et seq.
Date Formed November 24, 1952
Services Retail water, sewer, fire protection, solid waste, weed abatement, and streetlights
Service Area
Location Northwest Riverside County west of City of Riverside; small area of 128 acres in San
Bernardino County
Square Miles/Acres Total of 7.7 square miles; 7.5 square miles in Riverside County
Total Water/Sewer Connections Water: 6,250 Sewer: 6,250
Population Served 33,441 (2016 UWMP)
Water Infrastructure
Facilities Several water treatment plants for well water; 370,000 linear feet of pipeline; six potable
wells and six non-potable wells
Storage Capacity 6.4 MG in four reservoirs
Primary Source of Supply Local groundwater in Riverside Basin area of Upper Santa Ana River Watershed; no
imported water supply is available
Water Rates (single-family home) Residential Meter Chg. ⅝” – 24.04; ¾” – 30.78 & up; Rate 1-5 units $1.14 each, 6-12 units
$1.51 each, 13-20 units $1.84 each and up to 2.69 each
Sewer Infrastructure
Facilities Collection system of 361,000 linear feet of pipe; three pump stations
Current and Projected Treatment Treatment by regional plant – Riverside Regional Wastewater Plant
Capacity 3.055 GPD capacity, average flows of 2.0 MGD
Primary Disposal Method Regional Plant reclaims some water and balance is discharged to the Santa Ana River
Sewer Rates (single-family home) Residential - 1 EDU $24.74; Commercial - 1 EDU $24.74 meter size
Budget Information - FY 2017-2018 (Water & Sewer Funds)
⨯
Revenues Expenditures Net Surplus/(Deficit)
Water Fund $5,538,241 $5,445,143 $93,098
Sewer Fund $2,670,956 $5,006,196 $-2,335,240
Combined Funds $17,566,304 $17,656,285 $-89,981
Capital Expenditures FY 2017-2018 Long-Term Planned Expenditures
$719,277 2017-19 $1,405,000 (2017-18 FY Budget)
Water Fund Balance/Reserves $4,686,415
Sewer Fund Balance/Reserves $2,077,004
Agency Net Position $4,748,770
Governance
Governing Body Five member Board of Directors elected at large; Board meetings on first and third
Thursdays at 4:00 p.m. at District office, 590 Rubidoux Boulevard, Jurupa, CA 92509
Agency Contact Steven W. Appel, 951-684-7580; steve@rcsd.org
Source: RCSD
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Growth and Population Projections
As part of an Urban Water Management Plan Update completed in 2015, RCSD developed
population and growth projections. The current and estimated future service population for
RCSD is shown in Table 87.
Table 87 – RCSD Population Projections, 2015-2040
2015 2020 2025 2030 2035 2040
33,441 35,211 37,685 40,160 42,635 45,110
Source: UWMP (2015)
Between 2015 and 2035, the District’s service population is expected to increase in service
population by approximately 1,900 connections or 9,194 residents. The majority of this growth
is expected to be in urban area cities within the District’s service area.
Disadvantaged Unincorporated Communities (DUCs)
Riverside LAFCO has determined that there are no DUC areas within the RCSD boundary
area or within or adjacent to RCSD’s SOI, so no additional analysis is required in this report.
Present and Planned Capacity of Public Facilities
RCSD utilizes water supplies from only one source, groundwater. Therefore, development and
management of the basin area is of utmost priority to ensure long-term water supply.
Groundwater
RCSD draws on average six million GPD of water supply from its active six domestic wells and
six active irrigation wells. RCSD has approximately 10 MGD production capability from all of its
wells and 6.4 MG of storage in four reservoir tanks.
RCSD extracts groundwater from one groundwater basin: the Riverside Basin area of the
Upper Santa Ana River Watershed. The basin is under the jurisdiction of a Groundwater
Management Act and adjudicated stipulated judgment with the goal of keeping it in a balanced
use manner. According to the 2015 UWMP Update, an overdraft condition does not exist. If an
overdraft condition does occur, Western MWD is required to recharge the basin as may be
needed.
Table 88 – RCSD Groundwater Production, 2011-2015
2011 2012 2013 2014 2015
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Difference 6,600 6,786 6,757 7,063 7,809
Source: UWMP Update 2015
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Recycled Water
RCSD does not currently have a recycled water distribution system or access to recycled
water. The UWMP states that the District has no plans for recycled water until at least 2025.
Water Demand Projections
The UWMP Act requires a water retailer to quantify the minimum water supply available during
the years 2016 to 2018, assuming years 2016 to 2018 repeated the driest three-year historic
sequence for each water supply source. RCSD’s estimated minimum supplies are shown in
Table 89 below.
Table 89 – RCSD - Minimum Supplies, 2016-2018
2016 2017 2018
(acre-feet) (acre-feet) (acre-feet)
17,000 17,000 17,000
Source: UWMP Update (2015)
Supply and Demand Assessment
Historically, there has been an increase in water use among agencies due to increased
development. Conservation efforts have proven to be effective in decreasing water use in dry
years. In the District’s recent UWMP Update, RCSD estimated that demands could increase
ten percent during a single dry year due to some area property owners experiencing local
supply reductions. However, during a multiple dry year period, it is expected that conservation
messaging and restrictions would lead to consumption dropping back down to normal year
levels in the second dry year, and falling a further ten percent in the third dry year.
The following tables summarize the anticipated supplies and demands for a Normal or Single
dry year based upon growth forecasts for RCSD.
Table 90 – RCSD Normal Year Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 17,000 17,000 17,000 17,000 17,000
Demand Totals 10,397 11,045 11,754 12,465 13,202
Difference 6,603 5,955 5,246 4,535 3,798
Source: UWMP Update (2015)
Table 91 – RCSD Single Dry Year Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 17,000 17,000 17,000 17,000 17,000
Demand Totals 10,397 11,045 11,754 12,465 13,202
Difference 6,603 5,955 5,246 4,535 3,798
Source: UWMP Update (2015)
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Wastewater Collection and Treatment
The District’s sewer treatment is provided by the City of Riverside under a contract since
May 4, 1978, to provide primary and secondary wastewater treatment. The District has three
pumping stations, 370,000 linear feet of pipeline, and other conveyance facilities. The District
conveys its wastewater from the District’s Jurupa Valley area to the City of Riverside
Treatment Plant. The District states that it currently has treatment capacity of 3.005 million
gallons per day (MGD) by contract within the City of Riverside plant. It was reported by the
District that in 2017 it discharged approximately 2.0 MGD to the Riverside Treatment Plant.
Since the treatment is provided outside the RCSD area, no recycled water supply is currently
available for consideration. LAFCO staff made note that an issue of effluent quality of TDS has
been identified by the City of Riverside and this issue is under discussion to better understand
potential impacts on future increases of connections and effluent flows.
Emergency Preparedness (Supply Interruption Capability)
Extended supply shortages are unlikely due to natural disasters or accidents which damage all
water sources. However, RCSD’s emergency capability plan is to provide water via some of its
wells utilizing emergency generators at main potable water well sites. This is sufficient water to
meet the minimum health and safety requirements of 50 gallons per day per capita for
approximately 33,000 residents. This assumes reduction in uses and zero non-residential or
landscape use.
Under emergency power outages or a catastrophic earthquake conditions, the existing storage
is expected to provide a supply at minimum demand levels. RCSD also has plans for
emergency supply from WMWD and Jurupa CSD.
RCSD has several portable back-up generators that can be used in the event of an area-wide
power outage. These generators can be relocated on primary well sites as may be to continue
water delivery to tanks and customers.
Financial Ability to Provide Services
As of June 30, 2017, the District was able to report a positive balance in its unrestricted net
position of $6,548,685. On June 30, 2016, the balance was $12,328,414. This is an increase
of $ 2,306,613. The net position of the District, the value of assets and funds on hand for
operations and capital investment, over the same period decreased slightly $89,981 or
approximately .001 percent during a period of drought demand implementation and slightly
increased costs of service.
RCSD operates its water and sewer services as enterprise funds within the confines of overall
District operations. Water sales and sewer service charges comprise the significant majority of
operating revenues that fund the services provided for water and sewer operations and
administration. On average, the RCSD receives approximately 17 percent of its revenues from
property taxes and utilizes most of that for sewer service expenses.
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Overall, the District’s water, sewer and CIP funds are considered stable and self-sustaining for
operational, capital and debt service activities, although some minor deficit spending has
occurred periodically due to planned capital improvement projects and conservation directed
by the state. Rate increases had been implemented over the last several years and again in
2017 to accommodate expenditures for maintenance and capital improvements. The District
reports that the cost of wastewater treatment has increased to the point that the District is
studying the alternative of placing its own treatment plant back in service.
The District has adopted a Reserve Policies that designates funds for various programs and
long-term debts. The policy provides direction to District staff on addressing reserves in the
annual budget process and for regular update reports to the Board of Directors:
• Restricted – Bond proceeds, debt service, and uses controlled by outside agencies or
regulations. The minimum amount established is the annual debt service requirement.
• Capital Facilities – To fund needed new or replacement facilities as identified in CIP
and FY Budgets. Minimum amount established is 100 percent of current budget plus 80
percent of the next year budget projection.
The District maintains a substantial reserve fund balance providing good capability to absorb
short term impacts, and is able to maintain an acceptable debt service to annual expenditure
ratio (currently 9).
A comparison of three years financial statistics from the published Comprehensive Audited
Financial Reports is provided below.
Table 92 – RCSD Financial Statements, FY 2015-FY 2017
FY 2015 FY 2016 FY 2017
Operating Revenues
Water charges $ 4,868,658 $ 4,977,751 $ 5,456,657
Sewer charges 2,234,052 2,476,226 2,670,956
Solid waste charges 2,924,073 3,021,676 3,111,866
Other operating revenue 317,125 36,295 81,584
Total operating revenue $ 10,343,908 $ 10,511,948 $ 11,321,063
Operating Expenses
Salaries & benefits $ 1,899,989 $ 1,895,149 $ 2,083,225
Contract services 2,665,779 2,716,120 2,855,163
Electrical power 617,416 545,000 437,047
Operating expense 332,900 300,792 382,824
Maintenance and repairs 116,090 158,671 160,099
Operating treatment 1,850,427 2,138,107 2,598,286
General, administrative and other 1,283,765 1,317,563 2,689,993
Total operating expenses 9,277,323 9,071,402 11,206,637
Operating income before depreciation 1,066,585 1,440,546 114,426
Depreciation expense -1,794,722 -1,843,890 -1,830,461
Operating income (loss) $ -217,180 $ -403,344 $ -1,716,035
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FY 2015 FY 2016 FY 2017
Non-Operating Revenues (Expenses)
Capital replacement $ 174,475 $ 182,566 $ 195,499
Capacity fees 843,960 515,100 669,826
Bond replacement reserve 1,131,240 1,113,261 1,170,758
Interest income 39,152 65,028 111,349
Interest expense -416,246 -406,765 -381,326
Total non-operating revenues (net) $ 1,772,581 $ 1,469,190 $ 1,766,106
Net income (loss) before capital contributions $ 1,555,401 $ 1,065,846 $ 50,071
Contribution in aid - construction $ 1,214,950 – –
Transfers in (out) $ -140,059 $ -177,556 $ -157,799
Capital Contributions
Capital contribution to others – $ 1,655,559 –
Total capital contribu tions/transfers $ 1,074,891 $ -1,655,559 –
Change in net position $ 2,630,292 $ -787,269 $ -107,728
Beginning of year 45,729,475 48,359,767 47,592,498
Prior period adjustment – – –
Net position - end of year $ 48,359,767 $ 47,592,498 $ 47,484,770
Source: Comprehensive Annual Financial Reports 2015, 2016, 2017
There are seven primary criteria, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratios of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
1. 3 Year Revenue/Expenditure Budget Trends
The District fund overall has been experiencing moderate drop in net income due to increasing
expenses over the last several years. Appropriate rate increases have been implemented for
water and sewer over the prior year (2017) and have cost of service factors built-in for three
years.
2. Ratios of Revenue Sources
The District receives approximately 80 percent of its water and sewer fund revenues from
charges and fees for services and nominal revenue from property tax collections (15 percent),
and about 4 to 5 percent from miscellaneous other sources. The ratios of unrestricted reserves
reflect an appropriate balance for typical enterprise fund services; this minimizes the impact
that negative economic factors might have on more elastic revenues such as property tax
(property tax has varied based upon the economic picture over the past ten years).
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3. Ratio of Reserves or Fund Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted cash reserve or fund balance the service fund
maintains in relation to the annual fund expenditures. The District’s fund balance ratio is
approximately 150 percent of annual expenditures. This fund ratio represents an adequate
ratio position and the reserve has been increasing over time.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the
District’s ability to meet debt obligations in relation to service provision expenditures. Ideally, a
ratio of 10 percent or less would reflect a very stable ratio. The District’s water and sewer
funds have reasonable debt, including refinancing of prior debt to reduce long-term expenses
and to pay for needed capital projects over time. The District’s annual debt service ratio to total
expenditures is approximately three percent, a very good ratio. One note payable to the State
of California will be paid off in 2018.
5. Rate Structures
The District has not raised water rates since 2014 except for a Consumer Price Index
adjustment of about 2.5 percent. Residential and commercial water rates use a 5 tiered rate
system. The District’s current water rates range from $1.14 to 2.69 per 100 cubic feet of
residential usage. Water service charges for water line maintenance range from $30.78 for a
residential ¾” size meter and $36.65 for a commercial ¾” size meter.
Sewer maintenance fees for collection and treatment is 24.74 per EDU per month. Commercial
and other special user pay based on water consumption and EDU based rates. Other fees and
charges for service and late fees can be found on the District’s website at www.rcsd.org.
6. Capital Improvement Program/Plan
The District has developed and implemented an adequate and comprehensive CIP for water,
sewer and other facility infrastructure improvements. The District’s current 5-Year CIP is
developed as part of the bi-annual budget and reflects approximately $2.033 million in
FY 18/19. RCSD maintains a consistent investment in infrastructure including pipelines,
reservoirs and sewer collection systems. This reflects an ongoing investment in capital
facilities.
7. Pension Liability and Other Post-Employment Benefits Liability
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and
death benefits to plan members and beneficiaries to RCSD employees. A “Classic” CalPERS
Miscellaneous member (hired prior to January 1, 2013) becomes eligible for service retirement
upon attainment of age 60 with at least 5 years of credited service. Public Employees' Pension
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Reform Act (PEPRA) Miscellaneous members (hired on or after January 1, 2013) become
eligible for service retirement upon attainment of age 62 with at least 5 years of service.
The service retirement benefit is a monthly allowance equal to the product of the benefit factor,
years of service, and final compensation. The final compensation is the monthly average of the
member's highest 12 full-time equivalent monthly pay. Retirement benefits for PEPRA
Miscellaneous members are calculated as a percentage of their plan based the average final
36 months compensation.
California law requires an annual calculation of the net pension liability and contribution for
each participating agency. This calculation is utilized by the agency to budget for and make
contributions to CALPERS toward its unfunded liability balance. In 2017, RCSD contributed
$232,666 toward the pension services and reflected a liability of $1,822,552. The 2016-17
CAFR contains a detailed description of the calculation of benefit and unfunded liability.
The District does not show any Other Post-Employment Benefits (OPEB) in its audit
statements.
Status and Opportunities for Shared Services
RCSD is a water and sewer district that serves a diverse area and with multiple types of retail
water customers. RCSD has undertaken a number of shared service opportunities with other
agencies, including:
• RCSD cooperates with the primary area water provider, Western MWD, with supply and
intertie connections to share water in emergency situations.
• RCSD contracts with the City of Riverside for sewer treatment services.
Government Structure and Accountability
RCSD is governed by board of directors with five members elected by division for four-year
terms.
Table 93 – Rubidoux Community Services District Board of Directors
RCSD Board Member Term Expires
Hank Trueba, President 2022
John Skerbelis 2022
Bernard Murphy 2020
F. Forest Trowbridge 2022
Armando Muniz 2020
The Board meets at the District Office located at 3590 Rubidoux Boulevard, Jurupa Valley, CA
92509 on the first and third Thursday of each month at 4:00 p.m. The Board of Directors
appoints a General Manager as the Chief Administrative Officer who is responsible for
managing District operations on a day-to-day basis, and select, appoint and manage staff and
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consultants to carry out District programs and projects. The Board also appoints a Legal
Counsel and Secretary.
The District provides public information on its website at www.rcsd.org. including information
on current projects, a history of the District, customer inquiries and FAQ’s, conservation
programs, annual budgets, and audits (CAFR). The website also includes contact information
for the Board of Directors and staff and Board meeting agendas and minutes. Other major
reports are accessible via links on the portal. A contact portal is also provided to further
research District reports and studies.
The District staff state that they work cooperatively with several cities and other water
agencies in the County and region. Based upon water rights and infrastructure resources,
there does not appear to be interest by the District in considering alternative government
service structures at this time. However, given the proximity and future potential for SOI and
annexations, consideration of possible reorganization with Jurupa CSD could be reviewed in
the future. Additionally, District staff is aware of two potential properties in the area with
interest in annexing to the District at this time: the Rio Vista development and the Highland
Park development. Timing of possible annexation discussions will depend upon the economy
and development processing.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
The San Bernardino Valley Municipal Water District (Valley District or SBVMWD) was formed
in 1954 as a regional agency to plan a long-range water supply for the San Bernardino Valley.
Formed under the Municipal Water District Act of 1911 (California Water Code Section 71000
et seq., as amended), Valley District covers approximately 353 square miles and is primarily
located in San Bernardino County.
The District serves a total population of about 700,000, including the cities and communities of
San Bernardino, Colton, Loma Linda, Redlands, Rialto, Bloomington, East Highland, Mentone,
Grand Terrace and Yucaipa (all within San Bernardino County). Within Riverside County, the
District includes service to approximately 660 residents in the Reche Canyon community and a
small portion in the general Aqua Mansa area. SBVMWD does not provide service outside its
current boundary. Pursuant to an agreement with San Bernardino LAFCO, Riverside LAFCO is
responsible for the portion of SBVMWD’s sphere of influence within Riverside County.
The District is also responsible for storage management of most of the groundwater basins
within its boundaries and for groundwater extraction over the amount specified in legal
judgments. Valley District fulfills its responsibilities in a variety of ways, including importing
water through the State Water Project for direct delivery and groundwater recharge and by
coordinating water deliveries to retail agencies throughout its area of service. Valley District is
also a member of the Santa Ana River Watermaster and the San Bernardino-Western
Watermaster.
In November 2015, SBVMWD, along with many agencies and cities, approved a Memorandum
of Understanding agreeing to develop a San Bernardino Basin Sustainability Council (GC).
The goals of the GC Task Force are to identify the water resources to ensure a sustainable
water supply into the future, and to equitably share the cost of those resources among the
pumpers. In SBVMWD’s FY 2019-20 General Fund Budget, funding was included to support
this effort.
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Exhibit 17 – San Bernardino Valley Municipal Water District
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San Bernardino Valley Municipal Water District - Profile
General Information
Agency Type Municipal Water District Act of 1911; section 71000 Water Code
Date Formed February 17, 1954
Services Regional water wholesaler
Service Area
Location The District spans approximately 353 square miles and is primarily located in San
Bernardino County. The District services the cities and communities of San Bernardino,
Colton, Loma Linda, Redlands, Rialto, Bloomington, Highland, East Highland, Mentone,
Grand Terrace, and Yucaipa. Within Riverside County, the District includes the Reche
Canyon community and a small portion in the general Aqua Mansa area.
Square Miles/Acres 353 Sq. Miles (San Bernardino and Riverside County territory combined)
Population Served About 700,000 (San Bernardino and Riverside County territory combined), 700 in Riverside
County
Water Infrastructure
Facilities Baseline Feeder, Baseline Feeder Extension South and Central Feeder to serve potable
water to retail providers; many of Valley District’s facilities have been integrated into the
State Water Project system.
Storage Capacity N/A
Primary Source of Supply California State Water Project (SWP) through the East Branch of the State Aqueduct via
Lake Sherwood
Water Rates (single-family home) Valley District is a water wholesaler providing water to cities and water agencies. Valley
District does not deliver water directly to retail customers.
Budget Information - FY 2017-2018
Revenues Expenditures Net Surplus/(Deficit)
Water General Fund $49,805,255 $60,043,100 $-10,237,845*
Capital Expenditures FY 2017-2018 Long-Term Planned Expenditures
included in above –
Water Fund Balance $666,452,344 – unrestricted net position (fund reserve)
Agency Net Position $796,331,452
Governance
Governing Body 5-member locally elected Board of Directors by division; meet first and third Tuesdays at
2:30 p.m. at SBVMWD Administrative Offices, 380 East Vanderbilt Way, San Bernardino,
CA 92408
Agency Contact Bob Tincher, 909-387-9215, bobt@sbvmwd.com
Sources: SBVMWD UWMP (2015); District website; District Questionnaire (2018); Upper Santa Ana River Watershed Integrated Regional Water
Management Plan (2015), CAFR 2017, 2018-19 FY Budget
Notes: *Budget balanced with rate reserves
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Growth and Population Projections
The estimated 2010 population within the Valley District service area was approximately
662,000. Valley District has prepared an estimate of future population for 2020 to 2040 using
projections developed by the Southern California Association of Governments (SCAG) in their
2012 Integrated Growth Forecast. Population projections are shown in Table 94, below.
Between 2015 and 2040, growth is expected to increase by approximately 26.7 percent, or
184,649 residents.
Table 94 – San Bernardino Valley Municipal Water District Population Projections, 2015-2040
2015 2020 2025 2030 2035 2040
690,758 721,223 757,015 794,584 834,017 875,407
Source: San Bernardino Valley Regional UWMP (2015)
Disadvantaged Unincorporated Communities (DUCs)
While Valley District serves a total population of 691,000 (mainly within San Bernardino
County), the District includes service to only 660 residents in Riverside County. Riverside
LAFCO has not identified any DUCs within the District’s Riverside County service area nor
within or adjacent to SBVMWD’s SOI.
Present and Planned Capacity of Public Facilities
The Valley District’s primary sources of water are from local water supplies (surface and
groundwater), imported water, and recycled water. In December 1960, Valley District signed a
contract with the State for an imported water supply through the State Water Project (SWP).
Valley District received 46,000 acre-feet in 1972 which would gradually increase to a total of
98,000 acre-feet per year. Later, Valley District acquired an additional 4,600 acre -feet per
year to establish its annual entitlement to SWP water at 102,600 acre feet.
The actual amount of SWP water Valley District receives each year is based upon hydrologic
conditions and other factors. Valley District is the fifth largest of 29 State Water Contractors
(Contractors) that receive water from the SWP. Each Contractor pays its proportionate share
of the facilities necessary to deliver the water into their service area. This “fixed” cost pays for
the infrastructure and is paid annually. In addition to the fixed cost, Valley District also pays
“variable” costs (energy and operations) for the actual water delivered each year.
The District takes delivery of SWP water at the Devil Canyon Power Plant Afterbay, which is
located just within its northern boundary. The SWP water is conveyed 17 miles east to various
spreading grounds and agricultural and wholesale domestic delivery points in the San
Bernardino Basin Area. Water is also conveyed westward for direct delivery in the Rialto-
Colton Subbasin. According to Valley District, in 2010 Valley District and Western Municipal
Water District received two permits, 21264 and 21265, from the State Water Resources
Control Board (“SWRCB”) that allow the diversion of as much as 200,000 AFY. Water is first
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diverted by Valley District/Western under Permit 21264 up to 100,000 acre-feet. The permits
initiated a “development phase” of Valley District and Western’s right to water from the Santa
Ana River.
Developing this new water right to its full potential will involve the construction of new
diversion, transmission and recharge facilities. These new facilities were outlined in the
Environmental Impact Report for the water right process and were estimated to cost up to
more than $200 million, if all facilities were deemed necessary. The Enhanced Recharge in
Santa Ana River Basins Project (Enhanced Recharge Project) is the first phase of facilities that
will capture and put to use additional stormwater diverted from the Santa Ana River under
Permits 21264 and 21265. One of the permit requirements for both Valley District/Western
permits is that construction of any new facilities be completed by October 1, 2020. The permits
also require that the two districts prove they can put the water to beneficial use by December
31, 2059. Once Valley District and Western have achieved their maximum diversion amount,
the SWRCB will issue a license that replaces the permits.
Local precipitation that runs off as surface water and local precipitation that soaks into the
ground, called “groundwater,” meets about 60 percent of the Valley District’s regional demand
in an average year. Valley District has developed a “cooperative recharge program” that is
being successfully implemented to help replenish groundwater using SWP water. Recycled
Water The recent drought highlighted the advantage of having a drought-proof water supply,
such as recycled water, as part of a regional water strategy. This led the Valley District,
agencies within its service area, the Western Municipal Water District of Riverside County, and
the City of Riverside to prepare a Regional Recycled Water Concept Study to identify recycled
water projects to maximize regional benefits to water supply reliability, water quality and
habitat sustainability.
The following tables summarize the anticipated regional water supply sources and demand
totals for the Valley District in years 2020 through 2040. As shown, Valley District anticipates
adequate supplies available to meet projected demands for years 2020 to 2040 under normal
year and single dry year conditions.
Table 95 – Valley District Normal Year Water Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 337,769 345,359 352,552 359,780 366,608
Demand Totals 236,799 247,969 259,104 269,563 276,818
Difference 100,990 97,390 93,448 90,217 89,780
Source: San Bernardino Valley Municipal Water District UWMP (2015)
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Table 96 – Valley District Single-Dry Year Water Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 327,444 335,034 342,227 349,455 356,283
Demand Totals 241,537 253,104 264,970 276,187 283,913
Difference 85,906 81,929 77,257 73,268 72,370
Source: San Bernardino Valley Municipal Water District UWMP (2015)
Emergency Response Capability Planning
The SBVMWD as a wholesale water agency has responsibility to plan for reliability of its water
supply to retail agencies. Pipelines and pump stations have been inspected and upgraded to
resist earthquake damage that is considered the most major risk to its system. Additionally,
pump stations are equipped with emergency power generators and backup pumps. The
UWMP Update describes plans being made to be prepared for an emergency or other event
that could restrict operation of the system on a longer term basis.
Financial Ability to Provide Services
As of June 30, 2017, SBVMWD was able to report a positive balance in its unrestricted net
position of $145,653,543. On June 30, 2016, the balance was $134,265,208. This represents
an increase of $11,388,335. The net position of the District (the value of assets and funds on
hand for operations and capital investment) increased $52,192,380, or approximately 7
percent, over the same period.
Valley District operates its water wholesale services as an enterprise fund within the confines
of overall District operations. Water sales and service charges comprise a small portion of
operating revenues that fund the services provided for water operations and administration. On
average, the SBVMWD receives about 83 percent of its revenues from property taxes.
Overall, the District’s water and CIP funds are considered stable and self-sustaining for
operational, capital and debt service activities, although some deficit spending has occurred
periodically due to planned capital improvement projects and conservation directed at retail
agencies by the state. Debt issued is paid for from bond assessments on the property tax rolls
and has been implemented over the last 30+ years to accommodate expenditures for
maintenance and capital improvements.
The Reserve Policy provides direction to District staff on addressing reserves in the annual
budget process and for regular update reports to the Board of Directors. Reserves are
established in several categories and uses:
• Restricted – Bond proceeds, debt service, and uses controlled by outside agencies or
regulations. The minimum amount established is the annual debt service requirement.
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• Capital Facilities – Funds for new or replacement facilities as identified in CIP and fiscal
year budgets. Minimum amount established is 100 percent of current budget plus 80
percent of the next year budget projection.
• Liquidity Fund – Various operating and emergency accounts to provide funding for rate
stabilization, operating reserves (to cover a maximum of 180 days of operating
expenses), and capital assets.
The District maintains a substantial reserve fund balance providing good capability to absorb
short term impacts, and is able to maintain a very good debt service to annual expenditure
ratio (currently 4.0).
A comparison of three years financial statistics from the published Comprehensive Audited
Financial Reports is provided below.
Table 97 – SBVMWD Financial Statements, FY 2015-FY 2017
FY 2015 FY 2016 FY 2017
Operating Revenues
Water sales $ 3,712,329 $ 5,303,831 $ 8,858,047
Other operating revenue 5,188,034 3,006,766 7,051,353
Total operating revenue $ 8,900,363 $ 8,310,597 $ 15,909,400
Operating Expenses
Source of supply including O & M $ 23,996,943 $ 27,802,920 $ 33,414,373
Salaries and benefits 4,170,141 4,212,216 3,955,009
Consultants 3,453,651 3,408,480 3,774,791
Support services 2,912,520 2,577,363 2,286,161
Water conservation and education 656,380 1,451,854 1,268,283
Field improvements – 495,121 1,973,075
Maintenance and repair 969,623 675,742 740,012
Utilities and brine line fees 1,552,811 1,525,209 1,747,307
Total operating expenses $ 13,715,126 $ 14,345,985 $ 16,001,845
Operating income before depreciation $ -28,811,706 $ -33,838,308 $ -33,506,818
Depreciation expense -11,840,983 -12,613,349 -13,694,898
Operating income (loss) $ -40,652,689 $ -46,451,657 $ 47,201,716
Non-Operating Revenues (Expenses)
Property taxes/debt service taxes $ 76,604,507 $ 90,252,000 $ 97,762,492
Interest and investment earnings 3,006,831 5,223,162 1,540,657
Grant income – – 150,242
Gain on sale of capital assets, net 399,482 4,790 -193,059
Contribution – – 50,000
Interest expense -326,333 -321,234 -315,834
Contribution – – -50,000
Other non-operating revenue, net – – –
Total non-operating revenue (expenses), net $ 79,684,487 $ 95,158,718 $ 98,894,498
Net income (loss) before capital contributions $ 39,031,798 $ 48,707,061 $ 51,692,782
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FY 2015 FY 2016 FY 2017
Capital Contributions
Developer contributions $ 6,443,375 $ 10,061,797 $ 14,682,746
Total capital contribu tions $ 8,446,656 $ 13,916,712 $ 24,350,755
Change in net position $ 6,045,651 $ 14,802,068 $ 21,818,352
Net Position
Beginning of year $ 606,516,571 $ 646,047,967 $ 695,254,626
Prior period adjustment – – –
Net position - end of year $ 646,047,967 $ 695,254,626 $ 747,447,006
Source: Comprehensive Annual Financial Reports 2015, 2016, 2017
There are seven primary criteria, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratios of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
1. 3-Year Revenue/Expenditure Budget Trends
The Water Fund overall has been experiencing consistent revenues over the last several
years. However, a majority of funding is derived from property and assessment taxes. This
increase in total revenues is attributed primarily to planned capital expenditures and cash flow
requirements for future supplies. Appropriate rate adjustments have been implemented over
the last several years to accommodate these planned expenditures into the future.
2. Ratios of Revenue Sources
The District receives the majority of revenue from property taxes and assessments (85
percent), 14 percent of its revenues from charges and fees for services, and about 1 percent
from miscellaneous other sources. The ratio of unrestricted reserves ($145.6 million) for the
agency reflects an appropriate balance (170 percent of annual operating expenses) for typical
enterprise fund services. This minimizes the impact that negative economic or drought factors
might have on more elastic revenues such as property tax. (Property tax revenues have
volatility based upon the economic picture over the past ten years.)
3. Ratio of Reserves or Fund Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year and to
fund capital projects is exhibited by the amount of unrestricted cash reserve or fund balance
the service fund maintains in relation to the annual fund expenditures. The District’s
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unrestricted fund balance of $145.7 million results in a ratio of approximately 170 percent of
annual expenditures. This fund ratio represents a positive ratio position and the reserve has
been increased over time. $22 million of this reserve is retained for purpose of self-insuring the
District against any claims.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the
District’s ability to meet debt obligations in relation to service provision expenditures. Ideally, a
ratio of ten percent or less would reflect a very stable ratio. The District’s Water Fund has
minimal debt ($8.6 million in revenues bonds) but must plan to purchase water supply capacity
and pay for capital improvements on the State Water Project for needed capital projects over
time. The District’s annual debt service ratio to total expenditures is less than 1 percent, a very
good ratio.
5. Rate Structures
The District charges retail water agencies for water supplied and for capacity to deliver water
into the future. The current wholesale water charge is approximately $118/AF recharge and
approximately $125/AF direct delivery. A majority of the District’s revenues are received via
property taxes with a levy per each $100,000 valuation, resulting in approximately 85 percent
of the agency revenues.
6. Capital Improvement Program/Plan
The District has developed and implemented an aggressive and comprehensive CIP for water
and facility infrastructure improvements. The District’s current 5-Year CIP reflects
approximately $315 million in improvements for water infrastructure, with several major
projects in development including the Central Feeder Phase 2 pipeline, Santa Ana River
Tributary/Storm Water Capture, several recycled water systems and Conjunctive Use Well
Projects. SBVMWD maintains a consistent investment in infrastructure including pipelines,
reservoirs and expansion of its supply reliability inventory.
Property tax revenues primarily are available to help support the CIP budget. Current projects
in process include the Riverside Groundwater Aquifer Storage Project, California Water Fix,
Sites Reservoir, and the design/construction of two hydroelectric plants.
7. Pension Liability and Other Post-Employment Benefits Liability
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and
death benefits to plan members and beneficiaries to SBVMWD employees. A “Classic”
CalPERS Miscellaneous member (hired prior to January 1, 2013) becomes eligible for service
retirement upon attainment of age 55 with at least 5 years of credited service. Public
Employees' Pension Reform Act (PEPRA) Miscellaneous members (hired on or after
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January 1, 2013) become eligible for service retirement upon reaching age 62 with at least five
years of service.
The service retirement benefit is a monthly allowance equal to the product of the benefit factor,
years of service, and final compensation. The final compensation is the monthly average of the
member's highest 36 full-time equivalent monthly pay. Retirement benefits for PEPRA
Miscellaneous members are calculated as a percentage of their plan based the average final
36 months compensation.
California law requires an annual calculation of the net pension liability and contribution for
each participating agency. This calculation is utilized by the agency to budget for and make
contributions to CALPERS toward its unfunded liability balance. In 2017, the District
contributed $1.5 million toward the pension services, recording a net pension liability of $6.2
million in addition to associated deferred outflows of $6.5 million. The 2016-17 CAFR contains
a description of the calculation of benefit and unfunded liability.
The District also offers post-employment medical benefits to retired employees who satisfy the
eligibility rules. Spouses and surviving spouses are also eligible to receive benefits. The
District also pays a fixed contribution towards the cost of the post-employment benefit plan for
those employees who meet the required service years for retirement from the District. The
District funds the plan on a pay-as-you-go basis and maintains reserves (and records a
liability) for the difference between pay-as-you-go and the actuarially determined cost.
For the year ended June 30, 2017, the District’s annual Other Post Employment Benefit
(OPEB) cost was $2,026,972. The District’s net OPEB obligation amounted to $159,768 for the
year ended June 30, 2017. A comprehensive description of the OPEB Liability is contained in
the annual CAFR on the District’s website.
Status and Opportunities for Shared Services
Valley District is active in the following JPAs:
• Santa Ana Watershed Project Authority
• State Water Project Contractors Authority
• Institutional Controls Groundwater Management Program
• Operation and Maintenance of East Branch Extension
In November 2015, SBVMWD, along with many agencies and cities, approved a Memorandum
of Understanding agreeing to develop a San Bernardino Basin Sustainability Council (GC).
The goals of the GC Task Force are to identify the water resources to insure a sustainable
water supply into the future, and to equitably share the cost of those resources among the
pumpers. In SBVMWD’s FY 2019-20 General Fund Budget, funding was included to support
this effort.
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Government Structure and Accountability
The San Bernardino Valley Municipal Water District is governed by a five-member, locally
elected Board of Directors. Directors are selected by geographic region, and each Director
serves a four-year term. The Board of Directors meets the first and third Tuesday of the month
at 2:30 p.m. at the SBVMWD Administrative Office located at 380 East Vanderbilt Way in the
City of San Bernardino.
Reasonable arrangements are made for those citizens with disabilities when the District is
notified in advance of a meeting. Meeting agendas are posted to the District’s website 72
hours in advance of a meeting. Residents are also given the option of signing up for e-
Notification if they want to receive an email notification when upcoming meeting agendas are
posted to the meeting calendar.
Table 98 – SBVMWD Board Members
Division SBVMWD Board Member Term Expires
Division IV T. Milford Harrison, President 2022
Division V Paul R. Kielhold, Vice President 2022
Division III Susan Longville, Treasurer 2022
Division I June Hayes 2020
Division II Gil Navarro 2020
The District’s website provides easy access to District and committee agendas, minutes, public
notices, budgets, audits and other key District documents. Phone numbers and email
addresses for District staff members are listed on the website.
Based upon past and current service provision practices, it is reasonable to conclude that
appropriate levels of public services can continue to be provided by the District to current and
future populations under the existing government structure. The District has not identified any
opportunities for realignment of services with adjacent agencies. No alternative government
structure options were identified for further consideration at this time.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
The Temescal Valley Water District was incorporated on December 27, 1965 as the Lee Lake
Water District to provide water and wastewater services to the area known as Temescal Valley
north of Lake Elsinore and south of the City of Corona in Riverside County. The service area is
10.2 square miles or 6,730 acres in size. As of July 1, 2015, the District officially changed the
name to Temescal Valley Water District.
The District is governed by a five-member Board of Directors who are elected at large. The
District provides potable water, wastewater collection and treatment, and recycled water
services to a population of approximately 20,400 residents, two golf course communities and
commercial facilities located within its service area. The District’s employees and contractors
are responsible for providing services to its standards to provide safe, reliable, economical and
environmentally friendly public services. The District serves approximately 6,066 customers of
which 650 are provided only sewer service.
The District Board of Directors has formed two financing entities to facilitate financing of
needed facilities: the Lee Lake District Financing Corporation to facilitate the issuance of
certificates of participation for water and sewer system improvements; and the Lee Lake Public
Financing Authority (Authority) that in 2013 issued Series A and B Revenue Bonds to
refinance previously issued bonds. The District’s Financing Corporation has not issued any
certificates and has no debt. The Authority was formed to refinance existing Community
Facility District debt.
The District’s primary water source for potable water customers is imported from the
Metropolitan Water District via the Western Municipal Water District (WMWD). The distribution
system consists of six pressure zones, five potable storage reservoirs (10.8 MG) and five
water booster pump stations. Two additional storage reservoirs are planned for construction in
2018-20.
Wastewater treatment is provided by the District-owned Temescal Valley Water Reclamation
Facility’s tertiary plant with 1.57 MGD capacity and currently averaging 1.1 MGD. The
collection system consists of four sewage lift stations and 67 miles of gravity collection
pipelines. The District has plans for expansion of the WRF by .225 MGD in FY 2018-19.
The District has separate non-potable distribution systems for landscaping and industrial uses.
One distributes Tertiary Recycled Water, and the other distributes Ag Water. The combined Ag
and Recycled Water systems, which distribute approximately 40 percent of the water demand,
consist of approximately 43 miles of pipeline and three storage reservoirs. Local groundwater
supplements the system and is sourced from seven wells in the local groundwater basin.
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Exhibit 18 – Temescal Valley Water District
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Temescal Valley Water District - Agency Profile
General Information
Agency Type California Water District Water Code 34000
Date Formed December 27, 1965 as Lee Lake Water District
Services Retail Potable and Non- Potable water, sewer collection and treatment to Tertiary for
recycled water distribution
Service Area
Location North of Lake Elsinore and South of the city of Corona along I-15 in the Temescal Valley
Square Miles/Acres 10.2 SM/6,730 acres
Total Water/Sewer Connections Water and Sewer: 6,066 Sewer only: 650 (two areas served for sewer only)
Population Served Est. 20,400
Water Infrastructure
Facilities 14.6 cfs capacity with Western MWD in the Mills Filtration plant for potable water; 7 non-
potable wells for delivery to the non-potable system for irrigation. 65 miles of potable water
pipeline, 25 miles of Recycled water pipeline and 18 miles of non-potable water pipeline
Storage Capacity 7 -10 days – 10.38 MG Potable and 4.2 MG Non-Potable/Recycled
Primary Source of Supply Imported water for potable use; well water and recycled water for irrigation uses
Water Rates (single-family home) ¾” meter - $26.63 per mo.; $2.64 – 3.28 HCF; Commercial -$2.88 HCF;
Landscape Irrigation - $3.03 HCF
Sewer Infrastructure
Facilities 67 miles collection pipes; Tertiary WWRF 1.57 MGD
Current and Projected Treatment Average 1.0 MGD of 1.57 MGD capacity; Expansion to 2.25 MGD in FY 18/19
Capacity
Primary Disposal Method Percolation and Recycled water distributed for landscape irrigation uses
Budget Information - FY 2017-2018 (Water & Sewer Funds)
Revenues Expenditures Net Surplus/(Deficit)
Water Fund $6,097,200 $4,945,000 $1,152,200
Sewer Fund $2,793,350 $1,513,350 $1,280,000
Non-Potable/Recycled Fund $1,852,000 $980,569 $871,431
Combined Funds $10,742,550 $7,438,919 $3,303,631
Capital Expenditures FY 2017-2018 Long-Term Planned Expenditures
$4,072,850 $15,030,000 (2018-2021 CIP)
Water Fund Balance/Reserves $28,079,413
Sewer Fund Balance/Reserves $44,248,837
Non-Potable/Recycled Fund $9,931,000 - Unrestricted balance $21.9 million
Balance/Reserves
Agency Net Position $ 25,131,126
Governance
Governing Body Five member Board elected at large
Agency Contact Jeff Pape or Mel McCullough, 951-277-1414, jeffp@temescalwd.com; Board meets fourth
Tuesday at 8:30 a.m. at 22646 Temescal Canyon Road, Temescal Valley, CA 92883
Sources: Website, CAFR,2018-19 Proposed Budget
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Growth and Population Projections
As part of an Urban Water Management Plan Update completed in 2015, TVMD developed
population and growth projections. The current and estimated future service population for
TVWD is shown in Table 99.
Table 99 – TVWD Population Projections, 2015-2040
2015 2020 2025 2030 2035 2040
15,098 16,100 17,005 20,000 20,000 20,000
Source: UWMP (2015)
Between 2015 and 2030, the District’s service population is expected to increase modestly in
service population by approximately 1,400 connections or 4,900 residents. The majority of this
growth is expected to be in the rural hill area within the District’s service area.
Disadvantaged Unincorporated Communities (DUCs)
Riverside LAFCO has determined that there are no DUCs areas within the TVWD served area
nor within or adjacent to TVWD’s SOI, so no additional analysis is required in this report. The
UWMP adopted in 2016 reports no DUC or DAC areas within the District.
Present and Planned Capacity of Public Facilities
TVWD utilizes water supplies from one primary source for drinking water supply: Imported
water via Western MWD. Other water supplies supplement the supply to meet customer
demand.
Imported Water (Purchased)
TVWD purchases imported water from the Western Municipal Water District at the Mills
Pipeline turnout. The distribution system consists of five storage reservoirs (10.8 MG) and five
pump stations.
Groundwater
TVWD draws on average approximately 20 to 25 percent of its water supply from its 7 active
irrigation wells. TVWD has approximately 0.8 MGD production capability from its wells. It is
also used to supplement the recycled water system in blending and supply.
TVWD extracts groundwater from one regional groundwater basin, the Bedford Coldwater
Subbasin of the Elsinore Basin, which presently is not in overdraft condition: The UWMP
states that groundwater production is expected to remain stable or possibly increase nominally
as some areas may convert from agricultural uses to suburban residential development. A
Groundwater Sustainability Agency (GSA) has been formed to manage supply and extractions.
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Table 100 – TVWD Projected Groundwater Production, 2015-2040
2015 2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
1,269 1,100 2,000 2,500 2,500 2,500
Source: UWMP Update 2015
Recycled Water
TVWD utilizes a recycled water distribution system from its operated wastewater Reclamation
Facility. Approximately 1 MGD is produced and delivered. During winter or rainy periods, a
percolation pond is available for storage and disposal. Twenty-five (25) miles of recycled water
pipeline distribute the water.
Water Demand Projections
The UWMP Act requires a water retailer to quantify the minimum water supply available during
the years 2016 to 2018, assuming years 2016 to 2018 repeated the driest three-year historic
sequence for each water supply source. TVWD’s estimated minimum supplies are shown in
Table 101 below. These supplies are based on the anticipated reliability of imported water
from Western Municipal Water District, local surface water, and local groundwater.
Table 101 – TVWD –- Minimum Supplies, 2016-2018
2016 2017 2018
(acre-feet) (acre-feet) (acre-feet)
5,500 6,000 6,300
Source: 2018 FY Budget Narrative
Supply and Demand Assessment
Historically, there has been an increase in water use among agencies due to increased
development. Conservation efforts have proven to be effective in decreasing water use in most
dry years. In the District’s recent UWMP Update, TVWD estimated that demands could
increase ten percent during a single dry year due to some area property owners experiencing
local supply reductions. However, during a multiple dry year period, it is expected that
conservation messaging and restrictions would lead to consumption dropping back down to
normal year levels in the second dry year, and falling a further ten percent in the third dry year.
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The following tables summarize the anticipated supplies and demands for a Normal or Single
dry year based upon growth forecasts for TVWD.
Table 102 – TVWD Normal Year Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 5,380 7,365 8,115 8,615 8,715
Demand Totals 4,344 5,435 5,690 6,201 6,303
Difference 1,036 1,930 2,425 2,414 2,412
Source: UWMP Update (2015)
Table 103 – TVWD Single Dry Year Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 5,380 7,365 8,115 8.615 8,715
Demand Totals 4,344 5,435 5,690 6,201 6,303
Difference 1,036 1,930 2,425 2,414 2,412
Source: UWMP Update (2015)
Emergency Preparedness (Supply Interruption Capability)
Extended supply shortages are unlikely due to natural disasters or accidents which damage all
water sources. However, TVWD’s emergency response plan (ERP) is to provide water via
connections to WMWD as well as an emergency connection with City of Corona and its 7 to 10
days of reservoir storage. This is sufficient water to meet the minimum health and safety
requirements of 50 gallons per day per capita for approximately 20,400 residents for
approximately ten days. This assumes reduction in uses and zero non-residential or landscape
use. Use of its wells is an option for irrigation/agriculture customers utilizing emergency
generators at some of its 7 well sites.
Under emergency power outages or a catastrophic earthquake conditions, the existing storage
is expected to provide a supply at minimum demand levels. TVWD has in place the capability
to coordinate emergency response with WMWD and other agencies through the California
Water Agencies Response Network (WARN) and Plan Bulldozer for construction equipment.
Financial Ability to Provide Services
As of June 30, 2017, the District was able to report a positive balance in its unrestricted net
position of $21,902,969. On June 30, 2016, the balance was $18,179,426. This is an increase
of $ 3,723,543. The net position of the District, the value of assets and funds on hand for
operations and capital investment, over the same period increased $2,464,849 or
approximately 3.2 percent during a period of drought demand implementation and increasing
water expenses.
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TVWD operates its water services as enterprise funds within the confines of overall District
operations. Water sales and service charges comprise the significant majority of operating
revenues that fund the services provided for water operations and administration. On average,
the TVWD receives approximately one percent of its revenues from property taxes.
Overall, the district water and CIP funds are considered stable and self-sustaining for
operational, capital and debt service activities, although some minor deficit spending has
occurred periodically due to planned capital improvement projects and conservation directed
by the state. Rate increases had been implemented over the last several years and again in
2017 to accommodate expenditures for maintenance and capital improvements.
The District Board of Directors has adopted a set of Financial Reserve Policies that designates
funds for various programs and long-term debts. The policy provides direction to District staff
on addressing reserves in the annual budget process and for regular update reports to the
Board of Directors. Reserves are established in 14 categories and uses:
• Restricted – Bond proceeds, debt service, and uses controlled by outside agencies or
regulations. The minimum amount established is the annual debt service requirement.
• Capital Facilities – To fund needed new or replacement facilities as identified in CIP
and FY Budgets. Minimum amount established is 100 percent of current budget plus a
percentage of the next year budget projection and fund balance.
The District maintains a substantial reserve fund balance providing good capability to absorb
short term impacts, and is able to maintain an acceptable debt service to annual expenditure
ratio.
A comparison of three years financial statistics from the published Comprehensive Audited
Financial Reports is provided below.
Table 104 – TVWD Financial Statements, FY 2015-FY 2017
FY 2015 FY 2016 FY 2017
Operating Revenues
Water service fees $ 5,594,465 $ 5,387,057 $ 6,740,410
Standby charges 157,347 186,926 131,441
Service meter revenue 23,800 27,400 38,700
Sewer services 2,441,241 2,469,186 2,544,072
Other 563,710 796,715 566,575
Total operating revenue $ 8,882,251 $ 8,895,322 $ 10,764,312
Operating Expenses
Source of supply $ 3,044,597 $ 2,588,104 $ 3,339,109
Pumping 102,346 92,670 65,211
Repairs and main tenance 962,982 716,898 1,048,017
Contract work – management 221,000 226,485 252,393
Contract work – operations/engineer 88,870 130,302 213,807
Wages and benefits 829,571 762,684 782,852
General and administrative, other 2,696,639 2,737,622 3,627,274
Total operating expenses $ 7,946,005 $ 7,254,765 $ 8,545,811
Operating income (loss) $ 936,246 $ 1,640,557 $ 2,218,501
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FY 2015 FY 2016 FY 2017
Non-Operating Revenues (Expenses)
Property taxes $ 131,679 $ 141,315 $ 147,240
Interest earnings 33,185 65,635 42,865
Other 25,713 67,202 56,243
Total non-operating revenues, net $ 190,577 $ 274,152 $ 246,348
Net income (loss) before capital contributions $ 1,126,823 $ 1,914,709 $ 2,711,197
Capital Contributions
Donations in aid of construction $ – $ – $ –
Connection fees – – –
Total capital contributions $ – $ – $ –
Change in net position $ 1,126,823 $ 1,914,709 $ 1,914,709
Beginning of year $ 75,597,788 $ 76,751,471 $ 78,666,180
Prior period adjustment $ 26,860 $ – $ –
Net position - end of year $ 76,751,471 $ 78,666,180 $ 81,131,029
Source: Comprehensive Annual Financial Reports 2015, 2016, 2017
There are seven primary criteria, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratios of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
1. 3 Year Revenue/Expenditure Budget Trends
The District fund overall has been experiencing positive increases as well as occasional
increased spending over the last several years. However, this is attributed primarily to planned
capital repairs, cost of water purchased and connection fees. Appropriate rate increases have
been implemented for water, sewer and recycled water over the prior year as of February 1,
2017 after a Cost of Service Study was completed in 2016 and a Public Hearing in January
2017.
2. Ratios of Revenue Sources
The District receives 97 percent of its water and sewer fund revenues from charges and fees
for services, minimal revenue from property taxes (1 percent), and about 2 percent from
miscellaneous other sources. The ratios of unrestricted reserves reflect an appropriate balance
for typical enterprise fund services; this minimizes the impact that negative economic factors
might have on more elastic revenues such as property tax (property tax has varied based upon
the economic picture over the past ten years).
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3. Ratio of Reserves or Fund Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted cash reserve or fund balance the service fund
maintains in relation to the annual fund expenditures. The District’s fund balance of $21.9
million provides a ratio that is approximately 200 percent of annual expenditures. This fund
ratio represents a very positive ratio position and the reserve has been increasing over time.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the
District’s ability to meet debt obligations in relation to service provision expenditures. Ideally, a
ratio of ten percent or less would reflect a very stable ratio. The District’s has reasonable debt
in form of a loan agreement with Elsinore Valley MWD for purchase of a pipeline in the amount
of $2,027,322, to be paid over time. The District’s annual debt service ratio to total
expenditures is approximately 3 percent, a very good ratio. The District does have Community
Facilities District Special Tax Bonds in form of Revenue Bonds outstanding that are pledged
for revenues of the District in current amount of $64,145,000 but these are not debt reflected
on the District financial statements.
5. Rate Structures
The District has raised rates in February 2017 to address increased costs including cost of
water purchased and utilities. Residential water rates use a 3-tiered rate system based upon
indoor use, typical use and higher use calculations. Commercial and potable irrigation users
pay a uniform rate. Recycled water users pay a flat rate per CCF in one of five pumping zones.
The District’s current residential water rates range from $2.67 to 3.34 per 100 cubic feet of
usage. The non-residential water user rate is uniform at $2.92 per 100 cubic feet of usage.
Recycled water users rates are uniform at $2.21 per 100 cubic feet of usage. Monthly meter
service charges range from $21.96 to 28.74 for a typical residential ⅝” and ¾” size meter.
Sewer service charges for line cleaning and treatment services are $36.36 per month per EDU
and projected to increase an average of three percent over each of the next three years.
Commercial and other special uses pay based upon treatment loading factors for each special
type use. A copy of the Notice of Public Hearing and rate rationale can be found at:
https://www.temescalvwd.com/images/userImages/2016-notice-of-public-hearing.pdf.
6. Capital Improvement Program/Plan
The District has developed and is implementing a systematic and comprehensive CIP for
potable water, non-potable water, recycled water and sewer capacity infrastructure
improvements. The District’s current 5-Year CIP reflects approximately $15.912 million in
improvements for water and sewer infrastructure, with approximately $2.322 million
programmed for FY 17/18.
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TVWD maintains an additional system upgrade and capital repair budget of $ 1.157 million in
the 2017-18 budget. These facility projects represent a consistent investment in planning and
infrastructure including pipelines, reservoirs, sewer treatment expansion and sewer collection
systems. This reflects an ongoing investment of capacity fees and operating funds in capital
facilities.
7. Pension Liability and Other Post-Employment Benefits Liability
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and
death benefits to plan members and beneficiaries to TVWD employees. A “Classic” CalPERS
Miscellaneous member (hired prior to January 1, 2013) becomes eligible for service retirement
upon attainment of five years of service and age 60 with at least five years of credited service.
Public Employees' Pension Reform Act (PEPRA) Miscellaneous members (hired on or after
January 1, 2013) become eligible for service retirement upon attainment of age 62 with at least
five years of service.
California law requires an annual calculation of the net pension liability and contribution for
each participating agency. This calculation is utilized by the agency to budget for and make
contributions to CALPERS toward its unfunded liability balance. In 2017, TVWD contributed
$53,460 toward the pension services. As of June 30, 2017, the District reported $50,718 net
pension liability for its proportionate share of the net pension liability. The 2016-17 CAFR
contains a detailed description of the calculation of benefit and unfunded liability.
The District reports no post-employment medical benefits to retired employees.
Status and Opportunities for Shared Services
TVWD is a water and sewer district that serves a diverse area and with various types of retail
and commercial water customers. TVWD has undertaken a number of shared service
opportunities with other agencies, including:
• TVWD cooperates with the primary water provider, Western MWD with supply and
intertie connection to share water in emergency situations and need for equipment.
• TVWD has coordinated service in the northern area by previously selling City of Corona
excess water. This service is no longer in effect but an emergency connection and
pump station remain in case of need.
Government Structure and Accountability
TVWD is governed by board of directors with five members elected at large for four-year
terms.
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Table 105 – Temescal Valley Water District Board of Directors
TVWD Board Member Term Expires
Charles Colladay, President 2019
Paul Rodriguez, Vice President 2021
Grant Destache 2021
John Butler 2019
David Harich 2021
The Board meets at the District Office located at 22646 Temescal Canyon Road, Temescal
Valley, CA 92883 on the fourth Tuesday of each month at 8:30 a.m. The Board of Directors
appoints a General Manager under a consulting contract who is responsible for managing
District operations on a day-to-day basis, and select, appoint and manage staff and
consultants to carry out District programs and projects. The Board also appoints a Legal
Counsel.
The District provides public information on its website at www.temescalvwd.com, including
information on current projects, a history of the District, customer inquiries and FAQ’s,
conservation programs, and audits (CAFR). The website also includes contact information for
the Board of Directors and staff and Board meeting agendas and minutes. Other major reports
are accessible via links on the portal.
The District staff state that they work cooperatively with other water agencies in the County
and region. Based upon water rights and infrastructure resources, there does not appear to be
interest by the District in considering alternative government service structures at this time.
However, the District is within the SOI of the City of Corona and future annexations or requests
for services in those areas may serve an opportunity to review service responsibilities.
Additionally, District staff is aware of a few properties in the area with interest in annexing to
the District at this time.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
West Valley Water District (WVWD) is a County Water District, a public agency of the State of
California, organized and existing under the County Water District Law (Division 12, Section
30000 of the Water Code). The District was formed on February 28, 1952. The District began
as the West San Bernardino County Water District and in the 1960s became the owner and
operator of three local mutual water companies. It was through this acquisition that the District
became the owner of water rights dating back to 1897. During those early years, the District
supplied more water primarily for agricultural purposes than for domestic use. During the
1970s and 1980s, there were other mergers where smaller water companies became a part of
WVWD. The District provides retail water service only.
WVWD is located partly in northern Riverside County with the major service area in southern
San Bernardino County. The service area is shown in Exhibit 19. WVWD is adjacent to the
western limits of the City of San Bernardino on the east; adjacent to, and including the eastern
part of the City of Fontana on the west; adjacent to the U.S. Forest Service boundary on the
north; and the County of Riverside on the south.
WVWD is divided into northern and southern sections by the central portion of the City of
Rialto. WVWD’s service area overlaps five political jurisdictions: the Cities of Jurupa Valley,
Rialto, Fontana and Colton and the unincorporated areas of San Bernardino County (including
the community of Bloomington). The density of development and recent growth patterns vary
considerably within these different jurisdictions, and WVWD maintains records of the number
of connections within each jurisdiction.
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Exhibit 19 – West Valley Water District
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West Valley Water District - Agency Profile
General Information
Agency Type County Water District WC 30000, et seq.
Date Formed February 28, 1952
Services Water Retail Service
Service Area
Location West Riverside County (Jurupa Valley area) and Southwest San Bernardino County
Square Miles/Acres 31 square miles / 19,860 acres
Total Water Connections 21,676
Population Served Approximately 80,000
Water Infrastructure
Facilities 23 wells, 25 reservoirs, 12 booster stations, 360 miles pipelines, 14.4 MGD Water
Treatment Plant, 2.9 MGD Fluidized Bed Reactor (FBR) Perchlorate Treatment Facility in
Rialto, CA
Storage Capacity 73 MGD in system/reservoirs; 23.6 MGD pumping capacity
Primary Source of Supply Groundwater – Local wells- 51%; Bunker Hill Basin – 17%; Surface – 18%; Imported – 14%
Water Rates (single-family home) $33.07 - flat monthly charge + tiered rate system for water usage: Tier 1 (1 to 10 units @
$2.13 per unit); Tier 2 (11 to 50 units @ $2.30 per unit); Tier 3 (over 50 units @ $2.53 per
unit).
Budget Information - FY 2018-2019 (Water Fund)
Revenues Expenditures Net Surplus/(Deficit)
Water Fund $30,734,623 $25,986,474 $4,748,149
Capital Expenditures FY 2018-2019 Long-Term Planned Expenditures
$ 11,149,758 Various projects including Highland Avenue
Pipeline, Reservoir recoating, Various rehab
projects; end of WMP 2017 CIP
Water Fund Balance/Reserves $22,622,990
Agency Net Position $125,702,976
Governance
Governing Body Five Member Board elected at-large; meetings on first and third Thursday at 6:00 p.m. at
855 W. Baseline Road, Rialto, CA
Agency Contact Clarence Mansell, General Manager (909) 875-1804; cmansell@wvwd.org
Sources: FY 2018-19 Budget; 2017-18 CAFR and Questionnaire Response
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Growth and Population Projections
As part of an Urban Water Management Plan Update completed in 2015, WVWD developed
population and growth projections in cooperation with several other water agencies in San
Bernardino County. For future population projections, the Southern California Association of
Governments (SCAG) forecast model was utilized. The current and estimated future service
population for WVWD is shown in Table 106.
Table 106 – West Valley Water District Population Projections, 2015-2040
2015 2020 2025 2030 2035 2040
80,161 86,246 92,793 99,836 107,415 115,568
Source: UWMP (2015); Southern California Association of Governments
Between 2015 and 2040, the District’s service population is expected to increase in service
population by approximately 11,000 connections or 35,407 residents. The majority of this
growth is expected to be in urban area cities within the San Bernardino County service area.
Disadvantaged Unincorporated Communities (DUCs)
Riverside LAFCO has determined that there are no DUCs or DAC areas within the WVWD
served area or within or adjacent to its SOI since it is coterminous. Accordingly, no additional
analysis is required in this report.
Present and Planned Capacity of Public Facilities
WVWD utilizes water supplies from three primary sources for drinking water supply: local
surface water from flows on the east side of the San Gabriel Mountains, including North Fork
Lytle Creek, Middle Fork Lytle Creek, and South Fork Lytle Creek; groundwater; and imported
water from the State Water Project (SWP). The WVWD distribution system is divided into eight
pressure zones. The District currently has a total storage capacity of approximately 72.61
million gallons. WVWD also operates a 14.4-MGD Water Filtration Facility (Oliver P. Roemer
WFF). Once treated or pumped from wells, potable water is stored in 25 reservoirs and
distributed via 360 miles of pipeline.
Imported Water (Purchased)
WVWD receives State Water Project (SWP) water from the San Bernardino Valley Municipal
Water District through the Lytle Turnout off the San Gabriel Feeder Pipeline. Recently
constructed metering and transmission facilities enable WVWD to purchase and treat up to 20
MGD (approximately 23,000 AFY at final treatment plant expansion). SWP water is treated at
the District’s Oliver P. Roemer Water Filtration Facility (WFF) and used for potable supply, or
can be used to supply non-potable customers, or for groundwater recharge in the Lytle Creek
Basin. In 2006 the WFF was expanded to increase production capacity to 14.4 MGD.
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Ultimately this plant will have a capacity of 20.4 MGD. WVWD has been utilizing SWP water
through the Lytle Turnout since 1999.
Groundwater
WVWD draws on average approximately 50 to 65 percent of its water supply from its wells.
WVWD’s normal operating practice is to pump its wells 16 hours a day during off peak hours to
take advantage of Southern California Edison’s time of use rate. If, for some reason, wells are
not in service (maintenance or repair), WVWD has the ability and right to pump its wells up to
24 hours per day. WVWD has approximately 36 MGD production capability from all of its wells
in operation 24 hours per day.
WVWD extracts groundwater from five regional groundwater basins: Bunker Hill and Lytle
Creek (which are both part of the SBBA), Rialto-Colton, Riverside North, and Chino Basins. All
five basins have been adjudicated and are managed in a balanced use manner. According to
the 2015 UWMP Update, no overdraft conditions are expected in these basins. WVWD has
received water through the Baseline Feeder pipeline since 1998. Because this water is not
produced by WVWD, it is not included in Table 107. WVWD's historical production for the past
five years (2011-2015) averaged 11,801 acre-feet (AF).
Table 107 – West Valley Water District Groundwater Production, 2011-2015
2011 2012 2013 2014 2015
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
12,345 13,709 13,055 11,648 8,249
Source: UWMP Update (2015)
Surface Water
When available, WVWD has the right to divert and export out of the Lytle Creek Region at
2,290 GPM. WVWD can also purchase an additional 1,350 GPM of Lytle Creek flows through
an agreement with the City of San Bernardino (San Bernardino is not able to utilize their
surface water flows). This water is treated at the Oliver P. Roemer WFF. WVWD also utilizes
Lytle Creek surface water flows for groundwater recharge in the Lytle Creek Basin.
Recycled Water
WVWD does not currently have a recycled water distribution system. WVWD is completing a
master plan for potential use of recycled water within its service area. WVWD’s plans for
recycled water are still preliminary, and the expected beneficial use has not been quantified.
WVWD is studying and evaluating current large landscape and non-potable users for potential
use of recycled water and identifying the infrastructure required to supply that demand. To the
extent feasible, if and when recycled water is available to WVWD, this water will be offered to
WVWD customers.
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Water Demand Projections
The UWMP Act requires a water retailer to quantify the minimum water supply available during
the years 2016 to 2018, assuming years 2016 to 2018 repeated the driest three-year historic
sequence for each water supply source. WVWD’s estimated minimum supplies are shown in
Table 108 below. These supplies are based on the anticipated reliability of imported SWP
water from San Bernardino Valley Municipal Water District, local surface water, and local
groundwater.
Table 108 – West Valley Water District - Minimum Supplies, 2016-2018
2016 2017 2018
(acre-feet) (acre-feet) (acre-feet)
33,030 33,030 33,030
Source: UWMP Update (2015)
Supply and Demand Assessment
Historically, there has been an increase in water use among agencies due to increased
development. Conservation efforts have proven to be effective in decreasing water use in dry
years. In the District’s recent UWMP Update, WVWD estimated that demands could increase
ten percent during a single dry year due to some area property owners experiencing local
supply reductions. However, during a multiple dry year period, it is expected that conservation
messaging and restrictions would lead to consumption dropping back down to normal year
levels in the second dry year, and falling a further ten percent in the third dry year.
The following tables summarize the anticipated supplies and demands for a Normal or Single
dry year based upon growth forecasts for WVWD:
Table 109 – WVWD Normal Year Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 36,400 41,900 45,400 48,400 48,400
Demand Totals 20,799 22,256 23,802 25,492 27,312
Difference 15,601 19,644 21,598 22,908 21,088
Source: UWMP Update (2015)
Table 110 – WVWD Single Dry Year Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 33,030 38,530 42,030 45,030 45,030
Demand Totals 22,879 24,481 26,183 28,041 30,043
Difference 10,151 14,049 15,847 16,989 14,987
Source: UWMP Update (2015)
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Emergency Preparedness (Supply Interruption Capability)
Extended multi-week supply shortages are unlikely due to natural disasters or accidents which
damage all water sources. However, WVWD’s emergency capability plan is to provide water
via its 25 storage reservoirs that have a combined capacity of over 72 million gallons. This is
sufficient water to meet the health and safety requirements of 50 gallons per day per capita for
approximately 80,000 residents for 18 days. This assumes zero non-residential or landscape
use.
Under emergency power outages or a catastrophic earthquake conditions, the existing storage
is expected to provide a supply of four days of average day demand or 2.5 days under
maximum summer demand. WVWD also has interconnections with other neighboring agencies
for emergency supplies.
WVWD has portable back-up generators that can be used in the event of an area-wide power
outage. These generators can be located on both wells and booster stations to continue water
production. These generators will be located in the northern part of the distribution system.
Water can then be boosted to higher zones or gravity fed to the lower zones. In addition to the
portable generators, WVWD has installed back-up generators at the Zone 5 and 6 booster
stations.
Facilities within Riverside County Service Area
As referenced in the Overview section, only a small percentage of area served by WVWD is
within Riverside County. The District reports that it serves 358.36 acres (out of a total of
19,860 acres) within Riverside County. To serve this area at the southern end of the District,
Reservoirs 2-3 and 2-4 are used as storage facilities and a Pressure Reducing Station
manages the pressure to meters. A planned project will also be activating service by June
2018 from Well 18A. In the Jurupa Valley area of Riverside County service area, the District
reports that a total of 281 metered service connections supply an average of 502.19 acre-feet
per year.
Financial Ability to Provide Services
As of June 30, 2018, the District was able to report a positive balance in its unrestricted net
position of $22,622,990. On June 30, 2017, the balance was $26,895,792. This is a decrease
of $ 4,272,802. The net position of the District, the net value of assets and funds on hand for
operations and capital investment, over the same period increased $10,146,107 or
approximately 8.7 percent during a period of drought demand implementation and increased
sales.
WVWD operates its water services as enterprise funds within the confines of overall District
operations. Water sales and service charges comprise the significant majority of operating
revenues that fund the services provided for water operations and administration. On average,
the WVWD receives less than 7 percent of its total revenues from property taxes.
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Overall, the District’s water and CIP funds are considered stable and self-sustaining for
operational, capital and debt service activities. Increase spending has occurred periodically
over the past few years due to population growth, planned capital improvement projects and
conservation directives from the state. Increased service connections, significant grant
revenue, debt refinancing and new development infrastructure revenue have helped offset
increased funding requirements for capital improvements and maintenance.
The District has adopted a comprehensive Financial Reserve Policy by Resolution 2015-10 on
July 16, 2015. The policy provides direction to district staff on addressing reserves in the
annual budget process and for regular update reports to the Board of Directors. Reserves are
established in three basic categories and uses:
• Restricted – Bond proceeds, debt service, and uses controlled by outside agencies or
regulations. The minimum amount established is the annual debt service requirement.
• Capital Facilities – To fund needed new or replacement facilities as identified in CIP
and FY budgets. Minimum amount established is 100 percent of current budget plus 80
percent of the next year budget projection.
• Liquidity Fund – This includes various operating and emergency accounts to provide
funding for rate stabilization, operating reserves (to cover a maximum of 180 days of
operating expenses), and capital assets. A separate Water Banking Reserve Account is
maintained to fund water purchases for placement in reserve.
The District maintains a substantial reserve fund balance providing good capability to absorb
short term impacts, and is able to maintain a very good debt service to annual expenditure
ratio (currently 3.82).
A comparison of three years’ financial statistics from the published Comprehensive Audited
Financial Reports is provided below:
Table 111 – WVWD Financial Statements, FY 2016-FY 2018
FY 2016 FY 2017 FY 2018
Operating Revenues
Water consumption sales $ 14,286,722 $ 15,854,879 $ 17,370,508
Water service charges 6,702,841 6,989,061 7,201,939
Other operating revenue 2,240,801 3,833,946 3,971,525
Total operating revenue $ 23,230,364 $ 26,677,886 $ 28,543,972
Operating Expenses
Source of supply $ 1,404,819 $ 1,307,160 $ 972,624
Pumping 2,910,119 2,823,389 3,066,501
Water treatment 1,842,223 3,723,148 4,110,055
Transmission and distribution 1,825,012 2,071,867 2,074,410
Customer accounts 1,885,567 1,923,943 2,031,657
Conservation 656,120 1,273,562 1,280,123
General and administrative 6,212,618 7,322,998 8,170,915
Total operating expenses $ 16,736,478 $ 20,446,067 $ 21,706,285
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FY 2016 FY 2017 FY 2018
Operating income before depreciation $ 6,493,886 $ 6,231,819 $ 6,837,687
Depreciation expense -7,346,162 -7,567,940 -5,946,892
Amortization of water participation rights -321,529 -321,529 -321,529
Operating income (loss) $ -1,173,805 $ -1,657,650 $ 569,266
Non-Operating Revenues (Expenses)
Property taxes $ 1,758,220 $ 1,821,922 $ 2,023,173
Grants and reimbursements 43,241 2,518,254 554,897
Interest and investment earnings 127,090 227,465 367,911
Rental revenue 29,966 37,241 32,941
Gain on sale of capital assets, net 24,400 60,980 15,400
Board approved rate rebate -2,547,492 – -2,263,619
Interest expense -1,055,660 -940,835 -879,953
Coyote Canyon CFD project expenses – -453,938 –
Debt issuance cost – -268,915 –
Debt administration expense – -493,246 53,076
Other non-operating revenue, net 24,524 16,122 20,422
Total non-operating revenues, net $ -1,595,711 $ 2,525,050 $ -75,752
Net income (loss) before capital contributions $ -2,769,516 $ 867,400 $ 493,514
Capital Contributions
Developer contributions $ 3,292,230 $ 2,340,207 $ 8,161,111
Facility charges 1,091,234 1,166,730 8,482,441
Total capital contributions $ 4,383,464 $ 3,506,937 $ 16,643,552
Change in net position $ 1,613,948 $ 4,374,337 $ 17,137,066
Net Position
Beginning of year $ 109,568,584 $ 111,182,532 $ 115,556,869
Prior period adjustment – – $ -6,990,959
Net position - end of year $ 111,182,532 $ 115,556,869 $ 125,702,976
Source: Comprehensive Annual Financial Reports 2018/17, 2017/16
There are seven primary criteria, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratios of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
1. 3-Year Revenue/Expenditure Budget Trends
The water fund overall has been experiencing surplus as well as occasional deficit spending
over the last several years which is attributed primarily to planned capital expenditures. Rate
increases, which have been implemented over the last several years (2012-2014), along with
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debt refinancing, grant revenue intake, increased service connections and new development
revenue, will offset these planned expenditures into the future.
2. Ratios of Revenue Sources
As of fiscal year ended June 30, 2018, the District receives 90 percent of its water fund
revenues from charges and fees for services, minimal revenue from property taxes (seven
percent), and about three percent from miscellaneous other sources. The ratios of unrestricted
reserves for the water fund reflect an appropriate balance for typical enterprise fund services;
this minimizes the impact that negative economic factors might have on more elastic revenues
such as property tax (property tax has variety based upon the economic picture over the past
ten years).
3. Ratio of Reserves or Fund Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted cash reserve or fund balance the service fund
maintains in relation to the annual fund expenditures. The District’s unrestricted fund balance
($22,622,990) ratio is approximately 81 percent of annual operating expenses. This fund ratio
represents a positive ratio position, and the reserve dollar value has increased over time.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the
District’s ability to meet debt obligations in relation to service provision expenditures. Ideally, a
ratio of ten percent or less would reflect a very stable ratio. The District’s water fund has
reasonable debt, including refinancing of prior debt to reduce long-term expenses and to pay
for needed capital projects over time. The District’s annual debt service ratio to total
expenditures is approximately 5.94 percent, a very good ratio.
5. Rate Structures
The District has not raised water rates since late 2014 when they set new rates effective
January 1, 2015. Residential and commercial water rates use a three tiered rate system.
Agriculture Users pay a flat rate per agreements. The District’s current water rates range from
$2.13 (1-10 HCF), $2.30 (11-50 HCF) and $2.53 (51 + HCF) of usage. Water service charges
for water line maintenance range from $22.21 - $33.07 for a typical residential ¾” and 1” size
meter. Other fees and charges for service and late fees can be found at the following link:
http://ca-westvalleywaterdistrict.civicplus.com/DocumentCenter/View/1114.
6. Capital Improvement Program/Plan
The District has developed and implemented an aggressive and comprehensive CIP for water
and facility infrastructure improvements. The District’s current 5-Year water facilities master
plan CIP reflects approximately $49 million in improvements for water infrastructure. WVWD
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maintains a consistent investment in infrastructure including pipelines, reservoirs and
expansion of its Water Filtration Facility.
FY 2016-17 included the procurement of two additional Granular Activated Carbon (GAC)
lead-lag vessels at the Oliver P. Roemer Water Filtration Facility. This project was completed
in Fall of 2017. In addition, the District, in collaboration with Carollo Engineers under a design-
build delivery contract, is in the final stages of the FXB Perchlorate Treatment Plant
construction project, which will add 700 gallons per minute (1.0 MGD) of perchlorate removal
capacity to the existing FBR capacity of 2.9 MGD, for a total plant capacity of 3.9 MGD. The
District’s portion of the FXB construction was funded by the Cleanup and Abatement Account
(CAA) grant awarded to the District by the State Water Resources Control Board in 2016.
Net revenues from the operations are available to help supplement the CIP budget for FY
2018-19. The CIP budget totals $11.15 million and includes $6 million in new system
infrastructure; $4.35 million in repairs, rehabilitation, and system maintenance; and $8 million
in other projects. This reflects an ongoing investment in capital facilities.
7. Pension Liability and Other Post-Employment Benefits Liability
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and
death benefits to plan members and beneficiaries to WVWD employees. A “Classic” CalPERS
Miscellaneous member (hired prior to January 1, 2013) becomes eligible for service retirement
upon attainment of age 55 with at least five years of credited service. Public Employees'
Pension Reform Act (PEPRA) Miscellaneous members (hired on or after January 1, 2013)
become eligible for service retirement upon attainment of age 62 with at least five years of
service.
The service retirement benefit is a monthly allowance equal to the product of the benefit factor,
years of service, and final compensation. The final compensation is the monthly average of the
member's highest 36 full-time equivalent monthly pay. Retirement benefits for PEPRA
Miscellaneous members are calculated as a percentage of their plan based the average final
36 months of compensation.
California law requires an annual calculation of the net pension liability and contribution for
each participating agency. This calculation is utilized by the agency to budget for and make
contributions to CALPERS toward its unfunded liability balance. In 2018, WVWD contributed
$715,005 in employer contributions. The 2017-18 CAFR contains a detailed description of the
calculation of benefit and unfunded liability.
The District also offers post-employment medical benefits to retired employees who satisfy the
eligibility rules. Spouses and surviving spouses are also eligible to receive benefits. The
District also pays a fixed contribution towards the cost of the post-employment benefit plan for
those employees who meet the required service years for retirement from the District. The
District funds the plan based on the actuarially determined contribution.
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For the year ended June 30, 2018, the District’s annual Other Post Employment Benefit
(OPEB) cost was $1,119,255. The District’s net OPEB obligation amounted to $8,110,225 for
the year ended June 30, 2018. The District contributed $287,245 for retiree benefit payments.
A comprehensive description of the OPEB Liability is contained in the 2017-2018 CAFR.
Status and Opportunities for Shared Services
WVWD is a multi-county water district that serves a diverse area and with multiple types of
retail water customers. WVWD has undertaken a number of shared service opportunities with
other agencies, including:
• WVWD cooperates with several area water providers with intertie connections to share
water in emergency situations. Currently, WVWD has interties with the Cities of Rialto,
Colton, and San Bernardino, the San Bernardino Valley Municipal Water District, the
Fontana Water Company and the Marygold Mutual Water Company.
• WVWD, through and agreement with the City of Rialto, received grant funding to jointly
construct the Groundwater Wellhead Treatment System Project. Designed to protect
local groundwater supplies, the system treats groundwater at a rate of about 2,000
gallons per minute (GPM) or 2.9 million gallons per day (MGD). The project represents
a scientific first in California through the utilization of a state-approved biological
treatment process employing micro-organisms to destroy the perchlorate and other
contaminants in drinking water and minimize the need for waste handling and disposal.
The Groundwater Wellhead Treatment System Project has allowed WVWD to restore a
portion of its groundwater basin supply.
• WVWD has entered into a water purchase agreement with the City of San Bernardino
allowing WVWD to purchase up to 2,290 GPM of surface water from the City.
• The District has entered a MOU with the San Bernardino Valley Municipal Water District
and the City of San Bernardino to allow for water transfers from the Baseline Feeder
Pipeline. WVWD may take delivery of up to 5,000 AF per year.
• WVWD, in cooperation with 19 other water agencies, developed the website
iEfficient.com to promote water conservation and other education programs.
• In partnership with five cities, three special districts and one private water agency,
WVWD participated in the joint development of a 2015 regional Urban Water
Management Plan 2015 Update. This approach provides for regional and coordinated
planning and information sharing.
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Government Structure and Accountability
WVWD is governed by Board of Directors with five members elected at-large for four-year
terms.
Table 112 – West Valley Water District Board of Directors
WVWD Board Member Term Expires
Dr. Clifford O. Young 2021
Greg Young 2019
Kyle Crowther 2019
Dr. Michael Taylor 2021
Donald Olinger 2019
The Board meets at the District Office located at 855 W, Base Line Road, Rialto, on the first
and third Thursday of each month at 6:00 p.m. The Board of Directors appoints a General
Manager as the Chief Administrative Officer who is responsible for managing District
operations on a day-to-day basis, and select, appoint and manage staff and consultants to
carry out District programs and projects. The Board also appoints a Legal Counsel and
Treasurer.
The District provides public information on its website at www.wvwd.org, including information
on current projects, a history of the District, customer inquiries and FAQ’s, conservation
programs, annual budgets, and audits (CAFR). The website also includes contact information
for the Board of Directors and staff and Board meeting agendas and minutes. Other major
reports are accessible via links on the portal. A transparency portal is also provided to further
research District reports and studies.
The District staff state that they work cooperatively with several cities and other water
agencies in the County and region. Based upon water rights and infrastructure resources,
there does not appear to be increased interest in considering alternative government service
structures at this time. Additionally, District staff is not aware of any properties in the area with
interest in annexing to the District at this time.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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Overview/History
Western Municipal Water District (Western) is a wholesale and retail water agency and also
provides sewer service in a limited area. Western was formed on January 19, 1954 under the
Municipal Water District Act of 1911 (Water Code 71000 et seq. Western’s service area is
located in western Riverside County, approximately 50 miles east of Los Angeles. Western
remains one of MWD’s 26 member agencies. Western’s total service area covers 527 square
miles, of which 118 square miles are included in its retail service area. As a wholesale agency
obtaining a majority of its water from the Metropolitan Water District of Southern California
(MET), Western has 12 retail water agencies within its general service area, eight of whom
currently receive water.
Western’s retail water service area includes portions of the City of Corona, portions of the City
of Riverside, the unincorporated areas around Lake Mathews, portions of the City of Murrieta,
and unincorporated Riverside County south of the City of Temecula. Western also pumps
groundwater from two basin areas – the Riverside-Arlington Basin and the Northern section of
the Temecula-Pauba Basin – and purchases some water from local agencies on an as-needed
basis. A recycled water system has been developed within the Riverside retail service area to
provide local supply reliability and dispose of treated effluent.
Western’s Riverside retail service area is served by two wastewater treatment facilities: the
Western Riverside County Regional Wastewater Treatment Plant (WRCRWTP), and the
Western Water Recycling Facility (WWRF). Western operates the WRCRWTP, which is a
regional wastewater treatment facility owned by the Western Riverside County Regional
Wastewater Authority (WRCRWA). The WRCRWA is a joint powers authority composed of the
cities of Norco and Corona, Western, Jurupa Community Services District and the Home
Gardens Sanitary District. Western also serves as the JPA administrator.
Western also owns and operates the Western Water Recycling Facility (WWRF), formerly the
March Wastewater Treatment Plant. The WWRF was expanded in 2011 to a capacity of
3 MGD tertiary treatment.
Wastewater treatment in Western’s Murrieta Division is provided by EMWD at the Temecula
Valley Regional Water Reclamation Facility and in cooperation with Rancho California Water
District (RCWD) at the Santa Rosa Water Reclamation Facility (recently reorganized under a
JPA to be a regional facility including Western, Elsinore Valley Municipal Water District and
RCWD). RCWD is the JPA administrator.
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Exhibit 20 – Western Municipal Water District
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Western Municipal Water District - Agency Profile
General Information
Agency Type Municipal Water District Act of 1911; section 71000 Water Code
Date Formed January 19, 1954
Services Wholesale and Retail Water Service, Sewer to portions of the District
Service Area
Location Generally west of I-215 Freeway south of Hwy 91 to Temecula
Square Miles/Acres 527 SM/337,000 acres in total; 118 SM retail water service
Total Water/Sewer Connections Water: 24,092
Sewer: 8,592 (WWRF – 1,708; WRCRWA – 4,781; Murrieta – 2,103)
Population Served 94,107 retail; 955,531 via wholesale agencies
Water Infrastructure
Facilities Arlington Desalter – 7.2 MGD; several connections to MWD; 639 miles of pipe;
25 Reservoirs/Tanks; 1 potable well in Murrieta Service Area; 5 wells serving the ADS.
Storage Capacity 25 Active Reservoir/Tanks; Total Storage Capacity = 83.33 MGD
Primary Source of Supply Imported water from MWD; groundwater via wells for potable; some reclaimed water from
WWRFs sold to retail irrigation customers.
Water Rates (as of 1/1/18) Riverside area ¾” meter charge - $34.67/mo; Murrieta area - $36.21/mo
Commodity range: Riverside area - $1.216 – 7.979 HCF;
Murrieta - $1.834 – 6.071 HCF
Sewer Infrastructure
Facilities Collection system –37 miles of pipes; 21 pump lift stations; Western Water Recycling
Facility – 3 MGD
Current and Projected Treatment WWRF – 3 MGD Capacity; WRCRWA – 14 MGD Capacity
Capacity Contract with SRRRA facility (1.0 MGD Primary)
Primary Disposal Method Reclaimed for sale; some effluent discharged for recharge & Santa Ana River for Orange
County Sanitation District reuse
Sewer Rates (as of 10/1/18) La Sierra area residential - $49.41/mo; Murrieta - $42.58/mo; other special uses have
calculated rates
Budget Information - FY 2017-2018 (Water & Sewer Funds)
Revenues Expenditures Net Surplus/(Deficit)
Combined Funds $123,143,222 $122,759,323 $383,899
(without capital contributions)
Capital Expenditures FY 2017-2018 Long-Term Planned Expenditures
$16,727,547 (net) $33,110,546 (2017-2022 CIP)
Water Fund Balance $113,704,094 Provided by excluding Sewer Fund Balance
Sewer Fund Balance $0 Sewer Fund in deficit with interfund borrowing; therefore, zero
Agency Net Position – unrestricted $113,704,094
balance
Governance
Governing Body Five member Board of Directors elected by division; first and third Wednesday at 9:30 a.m.
at 14205 Meridian Parkway, Riverside, CA 92518
Agency Contact Tim Barr 951-571-7254, tbarr@wmwd.com; Susie Aguilar 951-571-7270,
saguilar@wmwd.com
Sources: UWMP 2016; website; CAFR 2016-17; Approved CIP 5/17/2017; questionnaire response
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Growth and Population Projections
As part of an Urban Water Management Plan Update completed in 2015, Western developed
population and growth projections. The current and estimated future service population for
Western is shown in Table 113.
Table 113 – WMWD Retail Population Projections, 2015-2040
2015 2020 2025 2030 2035 2040
94,107 99,584 114,584 123,519 132,341 140,371
Source: UWMP (2015)
Between 2015 and 2035, the District’s service population is expected to increase in service
population by approximately 9,700 connections (using 3.94 persons per connection) or 38,234
residents. The majority of this growth is expected to be in urban and suburban area cities
within the District’s service area.
Table 114 – WMWD Wholesale Population Projections, 2015-2040
2015 2020 2025 2030 2035 2040
955,531 1,019,255 1,081,428 1,139,578 1,193,125 1,244,880
Source: UWMP (2015)
Disadvantaged Unincorporated Communities (DUCs)
Riverside LAFCO has determined that there are several DUCs within the Western MWD
boundaries and SOI. Those identified to date are listed as follows: Corona DUC 1) Home
Gardens community adjacent to City of Riverside and Corona. While served by the Home
Gardens CWD and Sanitary District, there may be unserved parcels within that area; Corona
DUC 2) El Cerrito – East with water served to a portion by City of Corona; Riverside DUC 1)
Highgrove – west; Riverside DUC 2 Highgrove – east, both served water and sewer by City of
Riverside but there may be unserved parcels within that area. Each of these areas is identified
in other agency reviews. There are no DUCs identified within or adjacent to the District SOI.
Present and Planned Capacity of Public Facilities
Western utilizes water supplies from two primary sources for drinking water supply: Imported
water from MET or City of Riverside and groundwater wells from several basin areas. Western
also utilizes several sources for recycled water to meet retail demands.
Imported Water (Purchased)
Western purchases supplemental imported water from the MET, averaging about 35 percent of
needed annual supply for the entire wholesale service area. Purchases may be higher during
drought conditions or when other local sources are limited. These supplies are divided
between wholesale and retail delivery costs. In 2015, Western retail use of imported water
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accounted for 25 percent of imported purchases. Forty percent of Western’s retail supply is
purchased from local sources including the City of Riverside, Riverside Highland Water
Company and the Meeks and Daley Water Company through contract agreements. The
Meeks and Daley reciprocal exchange agreement is with Elsinore Valley MWD. Western
receives access to a limited supply of local groundwater in the San Bernardino Basin Area
(Meeks and Daley Rights) and in exchange, Elsinore Valley MWD receives limited access to
imported supply through Western’s Mills Gravity Pipeline.
Groundwater
Western currently extracts groundwater from two regional groundwater basins. Most
groundwater basins that Western uses are adjudicated or subject to groundwater management
plans and therefore stable in terms of planned supply. According to the 2015 UWMP Update,
the following basins and average supply are planned for long-term sources:
• Riverside-Arlington Basin; Upper Santa Ana River Valley in northwest Riverside
County; supplies about 7% of Western’s total wholesale supply and is currently treated
at the Arlington Desalter and served to the Cities of Norco and Corona.
• Temecula-Murrieta Basin: Temecula Valley (alluvial) Basin in southwestern Riverside
County for use in only the portions of the City of Murrieta served by Western
• Chino Basin: water from the Chino Basin requires desalting, and treatment plants
administered by the Chino Desalter Authority are in operation. Western will begin taking
water from this JPA pipeline under the Santa Ana River in July 2019.
Table 115 – WMWD Total Groundwater Production, 2011-2015
2011 2012 2013 2014 2015
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
19,534 19,786 20,767 17,115 25,369
Source: UWMP Update (2015)
Surface Water
Western does not utilize surface or lake water supply in its supply resources.
Recycled Water
Western is both a producer and retailer of recycled water from its sewer treatment facilities and
in cooperation with other water agencies in its service area. In 2018, Western’s Board adopted
the “Western Municipal Water District’s Strategic Priorities 2018-2021” which addresses
various elements of water resource management including recycled water. In 2015, Western
treated and distributed approximately 3,400 AF of tertiary treated water to wholesale and retail
customers. Western has plans to develop an additional 2 MGD average flow treatment at
tertiary levels (UWMP 2015).
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Water Demand Projections
The UWMP Act requires a water retailer to quantify the minimum water supply available during
the years 2016 to 2018, assuming years 2016 to 2018 repeated the driest three-year historic
sequence for each water supply source. Western’s estimated minimum supplies are based
upon the MET UWMP analysis that resulted in determination that minimum supply could be
delivered in each of the three years at 100% of prior year’s levels. Therefore, supply
reliabilities are based on the anticipated reliability of imported water from MET and local
groundwater sources.
Supply and Demand Assessment
Historically, there has been an increase in water use among agencies due to increased
development. Conservation efforts have proven to be effective in decreasing water use in dry
years. In the District’s recent UWMP Update, Western estimated that demands could increase
during a single dry year due to some area property owners experiencing local supply
reductions. However, during a multiple dry year period, it is expected that conservation
messaging and restrictions would lead to consumption dropping back down to normal year
levels in the second dry year, and falling a further ten percent in the third dry year.
The following tables summarize the anticipated wholesale supplies and demands for a Normal
or Single dry year based upon growth forecasts for Western (retail supplies are expected to
grow proportionately over the same period):
Table 116 – WMWD Wholesale Normal Year Supply and Demand Projections, 2020-2040
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 152,491 159,389 169,372 178,155 184,095
Demand Totals 110,787 114,039 123,515 122,895 132,999
Difference 42,704 45,350 45,857 55,260 51,096
Source: UWMP Update (2015)
Table 117 – WMWD Single Dry Year Supply and Demand Projections, 2020-2040 –
Wholesale Supply
2020 2025 2030 2035 2040
(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)
Supply Totals 152,491 159,389 169,372 178,155 184,095
Demand Totals 110,787 114,039 123,515 122,895 132,999
Difference 41,704 45,350 45,857 55,260 51,096
Source: UWMP Update (2015)
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Future Water Projects
WMWD is continuing to study ways to expand its water supplies when the opportunity arises,
and coordinates with nearby agencies to achieve water supply goals. As part of its 2015
UWMP, Western identified the following priority water projects to consider:
• Arlington Recharge Project – in construction (recharge and rehabilitate groundwater
basin)
• Chino Basin Desalter Phase 3 Expansion – in construction (increase lower salt water
recovery capability)
• La Sierra Pipeline portion of the Riverside-Corona Feeder – in construction (Arlington
Desalter water supply delivery to the Riverside retail area)
• Conjunctive Storage and Use Programs – in planning
• Riverside North Aquifer Storage and Recovery Project – in review (recharge
groundwater)
All of these projects are active and funded in the Western CIP process.
Sewer (Wastewater) Collection and Treatment
There are five centralized wastewater treatment facilities to which wastewater collected within
Western’s service area is conveyed, though individual septic systems also remain actively in
use within the rural areas of the region.
1. Western Riverside County Regional Wastewater Treatment Plant (WRCRWTP).
Western and the City of Riverside both provide wastewater collection and treatment
services for Western’s Riverside Retail Service Area. Western operates the
Western Riverside County Regional Wastewater Treatment Plant (WRCRWTP),
which is a regional wastewater treatment facility owned by the Western Riverside
County Regional Wastewater Authority (WRCRWA). The WRCRWA is a joint
powers authority composed of Western, the cities of Norco and Corona, Jurupa
Community Services District and the Home Gardens Sanitary District.
2. Western Water Recycling Facility (WWRF). Western owns and operates the
Western Water Recycling Facility (WWRF), formerly the March Wastewater
Treatment Plant. The WWRF was expanded in 2011 to a capacity of 3 MGD tertiary
treatment. Recycled water is then distributed to customers including the Riverside
National Cemetery, General Archie Old Golf Course, schools, parks, agricultural
groves, and nurseries.
3. The Santa Rosa Water Reclamation Facility (SRWRF). Western, EVMWD and
RCWD are participants in the SRWRF Facility (renamed recently as the result of the
JPA formation) that serves central and western Temecula and some adjacent
areas. The Santa Rosa Water Reclamation Facility (SRWRF) and Santa Rosa
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Regional Resources Authority (SRRRA) have a current capacity of 5 MGD, or
approximately 5,598 AFY.
Western currently owns capacity for 1 MGD but averages 0.5 MGD. The District has
plans to participate in expansion of the plant when deemed needed for the region.
The plant collects flow from areas within portions of the District’s service area plus
from RCWD and EVMWD. The SRRRA, a Joint Powers Authority, formed by
Western, Elsinore Valley MWD and RCWD in 2015, owns the SRWRF, as well as
over 17 miles of gravity mains and the Cal Oaks Lift Station. The SRWRF, gravity
mains, and lift station are operated by contract by RCWD. Purchase of the SRWRF
by the SRRRA is planned for late 2018.
The average daily wastewater treated at the SRWRF in FY 2017 was 1.0 MGD, with
all of the recycled water produced at this plant reused. Seasonal storage ponds
near the SRWRF, as well as the Cole Creek Storage Ponds, store effluent during
the winter months (low demand period) to prevent discharges and provide
reclaimed water supply to meet peak summer demands. The current pond storage
capacity is 1,495 AF.
4. Temecula Valley Regional Water Reclamation Facility (TVRWRF). The
TVRWRF, operated by Eastern MWD, treats wastewater from a service area that
includes the “Golden Triangle” region between Interstates 15 and 215, the Murrieta
Hot Springs area, a small number of connections (approx. 75) in Western’s retail
service area within the City of Murrieta, and portions of RCWD’s Rancho Division in
the northern section of the District. The TVRWRF also receives and treats
wastewater generated within the RCWD and EVMWD service areas.
The total wastewater treated at the TVRWRF in FY 2014-2015 was 15,088 AFY or
13,500,000 GPD. Recycled water produced and distributed totaled 14,650 AFY, or
97% of wastewater arriving at the facility. Effluent from the TVRWRF is conveyed to
onsite storage ponds prior to its distribution. There are 225 MG of temporary onsite
storage capacity.
When additional storage is required, recycled water is conveyed to 450 MG storage
ponds located 10 miles north in Winchester, providing recycled water supply for
irrigation users along the way. When the ponds are full or there is not enough
demand, the effluent may be discharged to Temescal Creek, a tributary of the Santa
Ana River, for ultimate disposal to the Pacific Ocean. Recycled water produced by
the TVRWRF is currently distributed to a variety of users in the District’s service
area.
5. Riverside Water Quality Control Plant (RWQCP). The City of Riverside operates
its own wastewater collection and treatment system. Within a portion of Western’s
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Riverside Retail Service Area, the City of Riverside conveys wastewater flows to its
Riverside Water Quality Control Plant (RWQCP). The RWQCP was recently
expanded, but currently has capacity to treat up to 40 MGD through one of its two
treatment plants and single tertiary filtration plant. Wastewater treated at the
RWQCP is discharged to the Santa Ana River. Western has an active planning and
development process that encourages use of recycled water throughout its service
area. A joint planning process with other agencies has been ongoing for over ten
years.
Emergency Preparedness (Supply or Treatment Interruption Capability)
Extended supply shortages are unlikely due to natural disasters or accidents which damage all
water sources. However, Western’s emergency response plan (ERP) is to provide water via its
imported water supply connections, groundwater storage and available wells. Western has
emergency supply connections with the cities of Corona and Riverside as well as EVMWD and
EMWD. This is sufficient water to meet the minimum health and safety requirements of 50
gallons per day per capita for approximately 900,000 residents. This assumes reduction in
uses and zero non-residential or landscape use.
Under emergency power outages or a catastrophic earthquake conditions, the existing storage
is expected to provide a supply at minimum demand levels. Western also has interconnection
with cities of Corona and Riverside, EVMWD and EMWD for emergency supplies. MET also
has emergency plans for their treatment plants and pipelines in case of earthquake.
Western has several portable back-up generators that can be used in the event of an area-
wide power outage. These generators can be located on primary pump stations and well sites
to continue water delivery.
Wastewater Treatment Plants are required to have emergency power generators for minimal
operating levels. Pump stations either have generators or portable generators can be moved
to sites requiring them.
Financial Ability to Provide Services
As of June 30, 2017, the District was able to report a positive balance in its unrestricted net
position of $113,704,094. On June 30, 2016, the balance was $86,965,126. This is an
increase of $ 26,738,968. The net position of the District, the value of assets and funds on
hand for operations and capital investment, over the same period increased $15,632,796 or
approximately 4% during a period after drought demand reductions were lifted and an increase
in activity of developer capital contributions and connection fees.
Western operates its water and sewer services as enterprise funds within the confines of
overall district operations. They also perform contract services to several other agencies.
Water sales and service charges and sewer service charges comprise the significant majority
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of operating revenues that fund the services provided for water and sewer operations and
administration. On average, the District receives approximately 16 % of its revenues from
property taxes.
Overall, the district water, sewer and CIP funds are considered stable and self-sustaining for
operational, capital and debt service activities, although some minor deficit spending has
occurred periodically due to planned capital improvement projects and conservation directed
by the state. Rate increases had been implemented over the last several years to
accommodate expenditures for maintenance and capital improvements.
The District has adopted a comprehensive set of Financial Reserve Policies that designates
funds for various programs and long-term debts. The policies provide direction to district staff
on addressing reserves in the annual budget process and for regular update reports to the
Board of Directors. Reserves are established in various categories and uses:
• Restricted – Bond proceeds and reserves, debt service, and uses controlled by outside
agencies or regulations.
• Capital Facilities – To fund needed new or replacement facilities as identified in CIP
and FY Budgets.
• Liquidity Funds – This includes various operating and emergency accounts to provide
funding for rate stabilization, operating reserves (to cover a maximum number of days
of operating expense in event of disaster)
The District maintains a substantial reserve fund balance providing good capability to absorb
short term impacts, and is able to maintain an acceptable debt service to annual expenditure
ratio.
A comparison of three years financial statistics from the published Comprehensive Audited
Financial Reports is provided below:
Table 118 – WMWD Financial Statements, FY 2015-FY 2017
FY 2015 FY 2016 FY 2017
Operating Revenues
Water consumption sales $ 69,533,791 $ 63,988,478 $ 70,698,068
Water service charges 16,841,065 16,669,887 17,335,249
Other operating revenue 3,425,078 4,357,863 4,624,224
Sewer services 10,292,222 10,234,040 11,512,039
Total operating revenue $ 100,092,156 $ 95,250,268 $ 104,189,580
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FY 2015 FY 2016 FY 2017
Operating Expenses
Source of supply and water purchase $ 62,508,434 $ 57,225,095 $ 64,671,160
Pumping 4,327,789 4,703,808 4,943,515
Water treatment 1,694,759 2,361,121 2,112,687
Transmission and distribution 8,019,861 10,040,804 9,361,842
Customer accounts 1,052,779 1,133,477 1,477,687
Sewer disposal 9,032,370 9,610,188 10,746,113
General and administrative 16,646,386 13,223,997 14,573,543
Total operating expenses $ 103,282,378 $ 98,298,490 $ 109,024,748
Operating income before depreciation $ -3,190,222 $ -3,048,222 $ -4,835,168
Depreciation expense -12,904,209 -12,787,432 -12,722,189
Operating income (loss) $ -16,094,431 $ -15,835,654 $ -17,557,357
Non-Operating Revenues (Expenses)
Property taxes/assessments $ 18,266,670 $ 18,837,852 $ 20,053,770
Investment earnings 2,221,947 4,759,409 -212,898
Interest expense -6,048,196 -5,122,063 -4,611,061
Capacity rights sales 414,280 338,202 1,548,535
Intergovernmental revenue 853,994 855,836 857,677
Other non-operating revenues 1,085,880 353,264 1,023,295
Other expenses -1,194,694 -1,499,812 -1,621,529
Gain (loss) on asset disposal -88,543 -228,815 -63,908
Total non-operating revenues, net $ 15,511,338 $ 18,293,873 $ 16,973,881
Net income (loss) before capital contributions $ -583,093 $ 2,458,219 $ -583,476
Capital Contributions
Connection fees, capacity charges $ 570,684 $ 696,787 $ 2,452,147
Donations in aid of c onstruction 2,453,657 251,167 9,850,515
Federal/state capital grants 2,115,190 4,057,387 3,913,610
Total capital contributions $ 5,139,531 $ 5,005,341 $ 16,216,272
Change in net position $ 4,556,438 $ 7,463,560 $ 15,632,796
Net Position
Beginning of year $ 358,282,017 $ 351,591,225 $ 359,054,785
Prior period adjustment - GASB -11,247,230 – –
Net position - end of year $ 351,591,225 $ 359,054,785 $ 374,687,581
Source: Comprehensive Annual Financial Reports 2015, 2016, 2017
There are seven primary criteria, discussed below, that may be utilized to assess the present
and future financial condition of the District’s water service operations:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratios of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Rate Structures
6. Capital Improvement Program/Plan
7. Pension Liability and Other Post-Employment Benefits Liability
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1. 3 Year Revenue/Expenditure Budget Trends
The district fund overall has been experiencing surplus as well as occasional deficit spending
(2016 due to water conservation in first part of the fiscal year) over the last several years.
However, this is attributed primarily to planned capital expenditures and cash flows.
Appropriate rate increases have been implemented for water and sewer over the prior years
(2016).
2. Ratios of Revenue Sources
The District receives approximately 77% of its water and sewer fund revenues from charges
and fees for services, minimal revenue from property taxes (16%), and about 7% from
miscellaneous other sources. The ratios of unrestricted reserves reflect an appropriate balance
for typical enterprise fund services; this minimizes the impact that negative economic factors
might have on more elastic revenues such as property tax (property tax has varied based upon
the economic picture over the past ten years).
3. Ratio of Reserves or Fund Balance to Annual Expenditures
An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is
exhibited by the amount of unrestricted cash reserve or fund balance the service fund
maintains in relation to the annual fund expenditures. The District’s unrestricted fund balance
in 2017 of $113.7 million results in a ratio of approximately 110% of annual expenditures. This
fund ratio represents an above average ratio position and the reserve has been increasing
over time.
4. Annual Debt Service Expenditures to Total Annual Expenditures
The ratio of annual debt service to total fund annual expenditures is an indicator of the
District’s ability to meet debt obligations in relation to service provision expenditures. Ideally, a
ratio of 10% or less would reflect a very stable ratio. The District’s water fund has reasonable
debt, including refinancing of prior debt to reduce long-term expenses and to pay for needed
capital projects over time. The District’s annual debt service ratio to total expenditures is
approximately 5%, a very good ratio.
5. Rate Structures
The District has adjusted rates regularly to account for costs of purchase of water and utilities.
Water rates were updated in October of 2017 for a three year period. Residential and
commercial water rates use a 5 tiered rate system. Agriculture Users pay a flat rate of $1.833
per 100 cubic feet. The District’s current residential water rates range from $1.216 – 7.979 per
100 cubic feet of usage. All users pay a pumping charge that varies by zone. Fixed system
charges range from $25.71 to $34.67 for a typical residential ⅝” and ¾” size meter. Other
charges are levied on the water bill based upon location and MET charges.
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Sewer maintenance fees were last adjusted on July 18, 2018 for a two-year period, effective
October 1, 2018, and October 1, 2019 for the three sewer service areas and for various other
classes of service. Effective October 1, 2018, basic service in the La Sierra area is $49.41 per
month per EDU, WWRF area is $69.31 per month per EDU, and in the Murrieta area served
by SRRRA is $42.58 or served by EMWD is $42.10 per month per EDU. Commercial and
other special uses have designated rates per the approved resolution 3029.
Table 119 – WMWD Adopted Water Rates (2018) - Single Family Residential*
Fixed Monthly Charge – ¾” meter $34.67
MET Readiness-to-Serve Charge $2.67
Tiered Rates
Tier 1 (indoor budget) $1.216 (HCF)
Tier 2 (outdoor budget) $2.574 (HCF)
Tier 3 (inefficient) $3.889 (HCF)
Tier 4 (wasteful) $4.489 (HCF)
Tier 5 (unsustainable) $7.979 (HCF)
*Rates based on ¾” meter
Table 120 – WMWD Adopted Sewer Rates (2018) - Single Family Residential
La Sierra Area WWRF Areas Murrieta Area
Fixed Monthly Account Charge a $49.41 - $54.41 $69.31 $42.10 - $42.58
Variable Charge b N/A $11.23 N/A
a EDU – Equivalent dwelling unit
b Variable charge based upon volume of water used per 1,000 gallons
Other fees and charges for service and late fees can be found on the District website.
6. Capital Improvement Program/Plan
The District has developed and implemented an adequate and comprehensive CIP for water,
sewer and related facility infrastructure improvements. The District’s current 5-Year CIP
reflects approximately $48.8 million in improvements for water and sewer infrastructure, with
approximately $14.9 million in projected expenditures for FY 18/19. Western maintains a
consistent investment in infrastructure including water supply and recharge, pipelines,
reservoirs, sewer collection systems as well as sewer treatment facilities. This reflects an
ongoing investment in capital facilities. The program is funded by Capacity charges, rates,
loans and grants.
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Western Municipal Water District
Table 121 – WMWD “Top Ten” Current CIP Projects
CIP Project Projected Cost
La Sierra Regional Conveyance System $ 16,240,784
Victoria Basin Recharge Project 4,950,598
Murrieta North Well Rehabilitation 3,600,000
Meter Replacement and Retrofit Project 1,364,353
Upper SAR HCP/SAR Integrated Model 700,000
WRCRWA Non-Asset Replacement Capital Projects 600,000
MARB Area Pipeline Replacement 500,000
ADS Automation Upgrade PLC and Software 350,000
Reservoir Management - Murrieta 300,000
Reservoir Management - Riverside 300,000
Total Project Costs $ 28,905,735
Offsets (possible offsets include loans, grants, reimbursements) $ -19,240,784
FY18/19 Net Cash Outflow $ 9,664,951
7. Pension Liability and Other Post-Employment Benefits Liability
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and
death benefits to plan members and beneficiaries to Western employees. A “Classic”
CalPERS Miscellaneous member (hired prior to January 1, 2013) becomes eligible for service
retirement upon attainment of age 55 with at least five years of credited service. Public
Employees' Pension Reform Act (PEPRA) Miscellaneous members (hired on or after
January 1, 2013) become eligible for service retirement upon attainment of age 62 with at least
five years of service.
California law requires an annual calculation of the Net Pension Liability and contribution for
each participating agency. This calculation is utilized by the agency to budget for and make
contributions to CALPERS toward its unfunded liability balance. In 2016, Western contributed
$2,128,890 toward the pension services. The 2016-17 CAFR contains a detailed description of
the calculation of benefit and unfunded liability which was $12,365,976 on July 1, 2015, the
start of the measurement period for the expected average remaining service lifetime
calculation.
The District also offers post-employment medical benefits to retired employees who satisfy the
eligibility rules. Spouses and surviving spouses of retirees hired before December 18, 2002
are also eligible to receive benefits. The District also pays a fixed contribution towards the cost
of the post-employment benefit plan for those employees who meet the required service years
for retirement from the District. The District funds the plan on a pay-as-you-go basis and
makes the contributions to a voluntary employee’s beneficiary association (VEBA) trust.
For the year ended June 30, 2017, the District’s net OPEB contribution paid amounted to
$708,338. A comprehensive description of the OPEB Liability is contained in the annual CAFR
on the District’s website.
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Western Municipal Water District
Status and Opportunities for Shared Services
Western is a water and sewer district that serves a diverse area and with multiple types of
wholesale and retail water and sewer customers. Western has undertaken a number of shared
service opportunities with other agencies, including:
• Western cooperates with the primary water provider, MET, with supply and intertie
connections to share water in groundwater recharge and in emergency situations.
• Western contracts with Eastern MWD for sewer treatment services in the East
Temecula area.
• Western is a member of and administrator of four groundwater agreements that provide
for management oversight and recharge of the groundwater basins.
• The District is a member of the SRRRA wastewater facility that serves a portion of the
sewer area in Murrieta and west Temecula.
• Western contracts with RCWD which provides retail maintenance and meter reading
services in the Rainbow Area (545 acres) and Rock Mountain Area (1,355 acres) south
of Temecula totaling 48 connections and averaging 34 acre-feet per year.
Government Structure and Accountability
Western is governed by board of directors with five members elected by division for four-year
terms.
Table 122 – Western Municipal Water District Board of Directors
WMWD Board Member Term Expires
Brenda Dennstedt, President 2022
Bob Stockton, Vice, President 2022
Donald D. Galleano, Secretary-Treasurer 2020
Gracie Torres, Director 2022
S. R. “Al” Lopez, Director 2020
The Board meets at the District Office located at 14205 Meridian Way, Riverside, CA 92518 on
the first and third Wednesday of each month at 9:30 a.m. The Board of Directors appoints a
General Manager as the Chief Administrative Officer who is responsible for managing District
operations on a day-to-day basis, and select, appoint and manage staff and consultants to
carry out District programs and projects. The Board also appoints a Legal Counsel.
The District provides public information on its website at www.wmwd.com, including
information on current projects, a history of the District, customer inquiries and FAQ’s,
conservation programs, annual budgets, and audits (CAFR). The website also includes contact
information for the Board of Directors and staff and Board meeting agendas and minutes.
Other major reports are accessible via links on the portal. A contact portal is also provided to
further research District reports and studies.
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Western Municipal Water District
The District staff state that they work cooperatively with several cities and other water
agencies in the County and region. Based upon established water rights adjudications and
infrastructure resources, there does not appear to be interest in considering alternative
government service structures at this time unless financial or service efficiencies could be
identified. The District is participating along with the City of Murrieta and other water providers
to conduct a more detailed review of water and related services within the City’s western area
(“Murrieta Retail Area”).
The Rainbow Service Area (545 acres) and Rock Mountain Area (1,355 acres) are located in
the WMWD service area south of the City of Temecula. WMWD does not have the
infrastructure in that area to deliver retail service water. WMWD has contracted with the
Rancho California Water District (RCWD) since January 2005 to provide metering and
maintenance service to these areas totaling 48 connections, an estimated population of 95
with an average of 34 acre-feet per year. The water supply to the Rock Mountain area is
provided by RCWD and the Rainbow area water supply is provided directly through a WMWD
connection to a MET supply pipeline.
LAFCO Policies Affecting Service Delivery
No LAFCO policies affecting service delivery were identified at this time.
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5. Municipal Service Review Determinations - Western County
1. Growth and population projections for the affected area
Projections of growth provided by the agencies, Census data, Urban Water Management
Plans, Sewer Master Plans and other resources indicate that growth will generally occur
throughout Riverside County’s Western County Region over the next 20 years. High
growth areas include the Cities of Hemet and Riverside, the Eastern Municipal Water
District, Elsinore Valley Municipal Water District and San Bernardino Valley Municipal
Water District. Only two agencies, Edgemont Community Services District and Home
Gardens County Water District, are projected to experience no or very limited population
growth.
2. Location and characteristics of any disadvantaged unincorporated communities
within or contiguous to the sphere of influence
Within the Western County Region, Riverside LAFCO has identified a number of
disadvantaged unincorporated communities (DUCs) within or contiguous to agency
spheres of influence. All identified DUCs are listed within the agency summaries (Section
4) for future reference. Currently, identified DUCs are provided water and sewer service
by existing agencies through contract or have the opportunity to connect to such services
in the future should homeowners elect to do so. The following agencies have DUCs in or
adjacent to their SOI:
Eastern MWD/Hemet area:
• Donald Street/California Avenue, west of the City of Hemet
• Roseland Mobile Home Park
• E. Stetson Avenue/S. San Jacinto Street
• E. Acacia Avenue
• Columbia Street/Mayberry Avenue
• So. Dartmouth Street/Mayberry Avenue
• Ridge area
• New Chicago Avenue/E. Acacia Avenue
• Mountain View Mobile Home Park
• Valle Vista area
• Georgia Avenue/HWY 74 area
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Perris area:
• Una Street/Alexander Street- Mead Valley
• Mead Valley North
• Luckens Lane/ West San Jacinto Avenue
• Mead Valley – South
Additionally, in the Temecula Area, there is one DUC adjacent to the SOI in the
Pechanga area but outside the service area of water facilities.
Elsinore Valley Municipal Water District/Lake Elsinore area:
• Warm Springs
• Lakeland Village
• El Cariso area
• Meadowbrook area
Home Gardens County Water District area:
DUCs identified, but none within the District’s SOI (which is coterminous).
Home Gardens Sanitary District area:
DUCs identified, but none within the District’s SOI (which is coterminous).
Lake Hemet Municipal Water District/City of Hemet:
• E. Stetson Avenue/S. San Jacinto Street
• E. Acacia Avenue
• Columbia Street/Mayberry Avenue
• So. Dartmouth Street/Mayberry Avenue
• Ridge area
• New Chicago Avenue/E. Acacia Avenue
• Mountain View MHP
• Valle Vista area
• Georgia Avenue/HWY 74 area
Western MWD:
• Home Gardens community adjacent to City of Riverside and Corona
• El Cerrito – East
• Highgrove – West
• Highgrove – East
There are no DUCs identified within or adjacent to the Western MWD SOI.
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3. Present and planned capacity of public facilities, adequacy of public services, and
infrastructure needs or deficiencies, including needs or deficiencies related to
sewers, municipal and industrial water, and structural fire protection in any
disadvantaged, unincorporated communities within or contiguous to the sphere of
influence
Based on expected supplies from Metropolitan and the San Bernardino Valley Municipal
Water District, and through data and reports supplied by the agencies for local water
supplies, the water service providers within the Western County Region have
demonstrated in plans to have adequate water to meet future needs. Wastewater
providers, through upgrading existing facilities and constructing new facilities, can also
meet future wastewater needs within the region. The agencies adequately generally
address infrastructure needs and deficiencies through master plans, Capital Improvement
Plans and other long-range planning documents. As stated above, identified DUCs in the
Western County Region are currently provided water and sewer service or have the
opportunity to connect to such services in the future. Several of the agencies utilize
regional or shared facilities for water and wastewater services and coordinate planning
for future facilities.
The City of Hemet has stated that replacement of deteriorating or inadequate water lines
may be needed to ensure the efficient provision of water supplies over time.
The City of Norco plans to address both the City’s water and sewer infrastructure
systems that are significantly aging.
4. Financial ability of agencies to provide services
The agencies prepare comprehensive annual budgets, maintain annual Capital
Improvement Plans, and maintain adequate and appropriate reserves. For most of the
agencies within the Western County Region, the amount of reserves held is matched to
CIP and other infrastructure improvements. All agencies reviewed reported unqualified
audits prepared in accordance with generally accepted accounting standards.
5. Status of, and opportunities for, shared facilities
There is extensive agency collaboration within the Western County Region. Excess
capacity, facilities and staff are made available through cooperative agreements
whenever possible. The agencies increase opportunities for shared facilities through joint
powers agreements, inter-ties, service agreements and industry groups. Examples of
cooperative programs are listed below by agency:
City of Corona: Formal agreements for sharing park and recreational facilities have been
entered into by the City of Corona and the Corona Norco Unified School District to more
efficiently use facilities; the Corona Police Department has contracted with the Riverside
Police Department to provide helicopter patrols to the City of Corona.
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City of Hemet: The City has an agreement with Eastern Municipal Water District for
treatment of all wastewater generated within the City of Hemet; the City’s animal control
services are provided through a contract with the Ramona Humane Society.
City of Norco: The City of Norco police service is provided through contract with the
Riverside County Sheriff’s Department; the City uses contract services for its City
Engineer and Water/Sewer Manager. The City is also a member of two JPAs: the Chino
Basin Desalter Authority (water treatment) and the Western Riverside County Regional
Wastewater Authority (sewer treatment). In both cases, multiple regional partners work
together to fund regional services and solutions to meet local area needs.
City of Perris: Eastern Municipal Water District provides water and sewer service to the
majority of City of Perris residents; the City contracts with Riverside County for police and
fire services and all animal control services.
City of Riverside: The City’s RPU collaborates with other local water retailers through the
Santa Ana Watershed Planning Authority (SAWPA), and the Basin Technical Advisory
Committee (BTAC); RPU participates in the Emergency Response Network of the Inland
Empire (ERNIE), a water/wastewater mutual aid network within San Bernardino and
Riverside counties; the City also provides wastewater treatment services for the
Community Services Districts of Edgemont, Jurupa, and Rubidoux.
City of San Jacinto: All sewage generated within the City wastewater system is provided
to the Hemet/San Jacinto Regional Water Reclamation Facility; the City has three
emergency water interconnections with Eastern Municipal Water District; police and fire
services are provided through contract with the Riverside County Sheriff’s Department
and the Riverside County Fire Department, respectively.
Eastern Municipal Water District: EMWD cooperates with the primary water provider,
MET as well as Western MWD, Elsinore Valley WD, and Rancho California WD with
supply and intertie connections to share water in emergency situations; EMWD
participates in a Joint Powers Authority (JPA) with four other agencies as the Santa Ana
Watershed Project Authority (SAWPA); EMWD is a member of the Lake Elsinore San
Jacinto Water Authority (LESJWA) that manages water flows and use in the Lake
Elsinore watershed.
Edgemont Community Services District: All legal needs of the District, except litigation
services, and all engineering and construction management services, are contracted on
an hourly basis; the District utilizes a contract plumber; the District owns capacity rights in
the Riverside Water Quality Control Plant.
Elsinore Valley Municipal Water District: EVMWD cooperates with the primary water
provider, Western MWD as well as Eastern MWD, Temescal Valley WD, Rancho
California WD and the City of Corona with supply and intertie connections; EVMWD
participates in a Joint Powers Authority (JPA) with RCWD and Western MWD for sewer
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treatment services at the SRWRF; the District participates in a Joint Powers Authority
with Temescal Valley WD and the City of Corona for management of two water basins in
the Temescal Valley area; EVMWD is a member of the Lake Elsinore San Jacinto Water
Authority that manages water flows and use in the Lake Elsinore watershed; the District
owns Canyon Lake and contracts with the Canyon Lake Association to provide
recreational opportunities in the reservoir.
Home Gardens County Water District: HGCWD cooperates with the primary water
provider, City of Corona and Western MWD with a supply and intertie connection; the
District has an agreement with the City of Corona for emergency operations support if
needed.
Home Gardens Sanitary District: HGSD cooperates with the regional Authority for
sewage treatment services and is a member of the Authority.
Jurupa Community Services District: JCSD cooperates with the primary area water
provider, WMWD, with planning for emergency supply and intertie connection to share
water in emergency situations; JCSD contracts with WRCRWA and other agencies for
sewer treatment services; JCSD operates the Chino Basin Desalter facility which serves
potable water to six different agencies through a JPA.
Lake Hemet Municipal Water District: LHMWD cooperates with Eastern MWD as a
supplier of supplemental water if needed. Eastern MWD and LHMWD have an intertie
connection to share water in emergency situations. LHMWD contracts with Eastern MWD
for sewer treatment services in the cities of Hemet and San Jacinto. LHMWD is a
member of the Hemet San Jacinto Water Master Agreement that provides for
management and recharge of the groundwater basin.
Rancho California Water District: RCWD cooperates with the primary water provider,
WMWD, as well as EMWD, with supply and intertie connections to share water in
emergency situations; RCWD provides maintenance and meter reading services to
WMWD in the Rainbow and Rock Mountain areas under a cooperative agreement since
2005; RCWD participates in a Joint Powers Authority (JPA), SRRRA, with EVMWD and
WMWD, for sewer treatment services at the SRWRF.
Rubidoux Community Services District: RCSD cooperates with the primary area water
provider, Western MWD, with supply and intertie connections to share water in
emergency situations; RCSD contracts with the City of Riverside for sewer treatment
services.
San Bernardino Valley Municipal Water District: SBVMWD is active in the following JPAs:
Santa Ana Watershed Project Authority, State Water Project Contractors Authority,
Institutional Controls Groundwater Management Program and Operation and
Maintenance of East Branch Extension; in November 2015, SBVMWD, along with many
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agencies and cities, approved a Memorandum of Understanding agreeing to develop a
San Bernardino Basin Sustainability Council (GC).
Temescal Valley Water District: TVWD cooperates with the primary water provider,
Western MWD, with supply and intertie connection to share water in emergency
situations and need for equipment; TVWD has coordinated service in the northern area
by previously selling City of Corona excess water. This service is no longer in effect but
an emergency connection and pump station remain in case of need.
West Valley Water District: WVWD cooperates with several area water providers with
intertie connections to share water in emergency situations; WVWD, through and
agreement with the City of Rialto, received grant funding to jointly construct the
Groundwater Wellhead Treatment System Project to protect local groundwater supplies;
WVWD, in cooperation with 19 other water agencies, developed the website
iEfficient.com to promote water conservation and other education programs; in
partnership with five cities, three special districts and one private water agency, WVWD
participated in the joint development of a 2015 regional Urban Water Management Plan
2015 Update. This approach provides for regional and coordinated planning and
information sharing.
Western Municipal Water District: Western cooperates with the primary water provider,
MET, with supply and intertie connections to share water in groundwater recharge and in
emergency situations; the District contracts with Eastern MWD for sewer treatment
services in the East Temecula area; Western is a member/administrator of four
groundwater agreements that provide for management oversight and recharge of the
groundwater basins; the District is a member of the SRRRA wastewater facility that
serves a portion of the sewer area in Murrieta and west Temecula; Western contracts
with RCWD which provides retail maintenance and meter reading services in the
Rainbow Area (545 acres) and Mountain Area (1,355 acres) south of Temecula totaling
48 connections and averaging 34 acre-feet per year.
6. Accountability for community service needs, including governmental structure and
operational efficiencies
The governing bodies of the agencies are locally accountable through adherence to
applicable government code sections, open and accessible meetings, and dissemination
of information. With the exception of Home Gardens County Water District and Home
Gardens Sanitary District, all agencies have websites which help to promote
transparency and accountability as well as allowing public oversight of agency activities.
These two agencies are aware of a new law requiring districts to have a website in 2019
unless specific conditions are met. As noted in agency narratives (Section 4), there may
be opportunities for further consideration of reorganization of service areas and
governance in several areas, including, but not limited to:
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• The Murrieta retail area including Eastern Municipal Water District, Rancho
California Water District, Western Municipal Water District and the City of Murrieta;
• The region of Home Gardens, including the Home Gardens County Water District
and the Home Gardens Sanitary District and the Cities of Corona and Riverside, that
provide some services to each other;
• Potential future revisions of service areas and SOIs of Jurupa Community Services
District and Rubidoux Community Services District should development occur; and
• The Temescal Valley area within the Temescal Valley Water District, Elsinore Valley
Municipal Water District, and City of Corona.
Some agencies lack mapping capabilities. All agencies are encouraged to develop
standardized mapping systems and submit updated maps to LAFCO on a regular basis.
7. Any other matter related to effective or efficient service delivery, as required by
commission policy
No other matters related to effective or efficient service delivery were identified by
Commission policy.
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List of Tables
Table 1 – Riverside County Agencies and Services Reviewed .................................................................................. 19
Table 2 – Mutual Water Companies - Western County Subregion .......................................................................... 22
Table 3 – Population by County ............................................................................................................................... 23
Table 4 – Employment by County ............................................................................................................................ 24
Table 5 – City of Corona Population Projections, 2015-2040 .................................................................................. 30
Table 6 – City of Corona Normal Year Water Supply and Demand Projections, 2020-2040 ................................... 31
Table 7 – City of Corona Single Dry Year Water Supply and Demand Projections, 2020-2040 ............................... 32
Table 8 – City of Corona Financial Information ....................................................................................................... 34
Table 9 – City of Corona Residential Water Rates (per HCF) ................................................................................... 36
Table 10 – City of Corona City Council Members .................................................................................................... 37
Table 11 – City of Hemet Normal Year Water Supply and Demand Projections, 2020-2040 .................................. 43
Table 12 – City of Hemet Single-Dry Year Water Supply and Demand Projections, 2020-2040 ............................. 43
Table 13 – City of Hemet Financial Information ...................................................................................................... 47
Table 14 – City of Hemet City Council Members ..................................................................................................... 50
Table 15 – City of Norco Population Projections, 2015-2040 .................................................................................. 55
Table 16 – City of Norco Normal Year Water Supply and Demand Projections, 2020-2040 ................................... 56
Table 17 – City of Norco Single-Dry Year Water Supply and Demand Projections, 2020-2040 ............................... 57
Table 18 – City of Norco Budget Information .......................................................................................................... 59
Table 19 – Adopted Water Rates* – City of Norco, 2017-2021 ............................................................................... 61
Table 20 – Adopted Sewer Rates* – City of Norco, 2017-2021 ............................................................................... 61
Table 21 – Five-Year CIP Source of Funds – Sewer Fund 147 .................................................................................. 62
Table 22 – Sewer CIP Projects - FYs 2018-2022 ....................................................................................................... 62
Table 23 – Five-Year CIP Source of Funds – Water Fund 144 .................................................................................. 62
Table 24 – Water CIP Projects - FYs 2018-2022 ....................................................................................................... 63
Table 25 – City of Norco City Council Members ...................................................................................................... 64
Table 26 – City of Perris Financial Information ........................................................................................................ 71
Table 27 – City of Perris Council Members .............................................................................................................. 75
Table 28 – City of Riverside (RPU) Water Service Area Population Projections, 2015-2040 ................................... 80
Table 29 – City of Riverside Normal Year Water Supply and Demand Projections, 2020-2040 .............................. 81
Table 30 – City of Riverside Single-Dry Year Water Supply and Demand Projections, 2020-2040 .......................... 81
Table 31 – City of Riverside Financial Information .................................................................................................. 84
Table 32 – Adopted Water Rates* – City of Riverside, 2019-2023 .......................................................................... 86
Table 33 – Adopted Sewer Rates* – City of Riverside, 2015-2019 .......................................................................... 86
Table 34 – City of Riverside City Council Members ................................................................................................. 88
Table 35 – City of San Jacinto Budget Information .................................................................................................. 95
Table 36 – City of San Jacinto City Council Members .............................................................................................. 98
Table 37 – EMWD Wholesale Population Projections, 2015-2040 ........................................................................ 104
Table 38 – EMWD Retail Population Projections, 2015-2040................................................................................ 104
Table 39 – EMWD Groundwater Production, 2011-2015 ...................................................................................... 108
Table 40 – EMWD - Minimum Supplies: Wholesale and Retail Total, 2016-2018 ................................................. 112
Table 41 – EMWD Wholesale Normal Year Supply and Demand Projections, 2020-2040 .................................... 112
Table 42 – EMWD Retail Normal Year Supply and Demand Projections, 2020-2040 ............................................ 113
Table 43 – EMWD Wholesale: Single Dry Year Supply and Demand Projections, 2020-2040 ............................... 113
Table 44 – EMWD Financial Statements, FY 2015-FY 2017 ................................................................................... 116
Table 45 – Eastern Municipal Water District Board of Directors ........................................................................... 121
Table 46 – ECSD Financial Statements, FY 2015-FY 2017 ...................................................................................... 126
Table 47 – Edgemont Community Services District Board of Directors................................................................. 129
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Table 48 – EVMWD Population Projections, 2015-2040 ....................................................................................... 135
Table 49 – EVMWD Groundwater Production, 2014-2018 .................................................................................... 136
Table 50 – EVMWD - Minimum Supplies, 2016-2018 ............................................................................................ 137
Table 51 – EVMWD Normal Year Supply and Demand Projections, 2020-2040.................................................... 137
Table 52 – EVMWD Single Dry Year Supply and Demand Projections, 2020-2040 ............................................... 138
Table 53 – EVMWD Financial Statements, FY 2015-FY 2017 ................................................................................. 141
Table 54 – Elsinore Valley Municipal Water District Board of Directors ............................................................... 145
Table 55 – HGCWD Population Projections, 2015-2040 ........................................................................................ 150
Table 56 – HGCWD Minimum Supplies, 2016-2018 .............................................................................................. 151
Table 57 – EVMWD Financial Statements, FY 2015-FY 2017 ................................................................................. 152
Table 58 – Home Gardens County Water District Board of Directors ................................................................... 155
Table 59 – HGSD Population Projections, 2015-2040 ............................................................................................ 159
Table 60 – HGSD Financial Statements, FY 2015-FY 2017 ..................................................................................... 160
Table 61 – Home Gardens Sanitary District Board of Directors ............................................................................. 163
Table 62 – JCSD Population Projections, 2015-2040 ............................................................................................. 168
Table 63 – JCSD Groundwater Production, 2011-2015 ......................................................................................... 169
Table 64 – JCSD - Minimum Supplies, 2016-2018 .................................................................................................. 170
Table 65 – JCSD Normal Year Supply and Demand Projections, 2020-2040 ......................................................... 171
Table 66 – JCSD Single Dry Year Supply and Demand Projections, 2020-2040 ..................................................... 171
Table 67 – JCSD Financial Statements – Enterprise Funds, FY 2015-FY 2017 ........................................................ 173
Table 68 – JCSD Water Rates*, 2015-2019 ............................................................................................................ 175
Table 69 – JCSD Sewer Rates*, 2015-2019 ............................................................................................................ 176
Table 70 – Jurupa Community Services District Board of Directors ...................................................................... 177
Table 71 – LHMWD Population Projections 2015-2040 ........................................................................................ 182
Table 72 – LHMWD Groundwater Production, 2011-2015 .................................................................................... 183
Table 73 – LHMWD - Minimum Supplies, 2016-2018 ............................................................................................ 184
Table 74 – LHMWD Normal Year Supply and Demand Projections, 2020-2035 .................................................... 184
Table 75 – LHMWD Single Dry Year Supply and Demand Projections, 2020-2035 ............................................... 184
Table 76 – LHMWD Financial Statements, FY 2015-FY 2017 ................................................................................. 186
Table 77 – Lake Hemet Municipal Water District Board of Directors .................................................................... 189
Table 78 – Normal Year Supply and Demand Comparison, 2020-2040 ................................................................. 191
Table 79 – RCWD Population Projections, 2015-2040 ........................................................................................... 194
Table 80 – RCWD Groundwater Production, FYs 2014-2018 ................................................................................. 196
Table 81 – RCWD - Minimum Supplies, 2016-2018 ............................................................................................... 198
Table 82 – RCWD Normal Year Supply and Demand Projections, 2020-2040 ....................................................... 198
Table 83 – RCWD Single-Dry Year Supply and Demand Projections, 2020-2040 .................................................. 198
Table 84 – RCWD Financial Statements, FY 2016-FY 2018 .................................................................................... 201
Table 85 – RCWD Major Capital Projects, FY 2018-2019 – FY 2022-2023 ............................................................. 204
Table 86 – Rancho California Water District Board of Directors ........................................................................... 206
Table 87 – RCSD Population Projections, 2015-2040 ............................................................................................ 211
Table 88 – RCSD Groundwater Production, 2011-2015 ......................................................................................... 211
Table 89 – RCSD - Minimum Supplies, 2016-2018 ................................................................................................. 212
Table 90 – RCSD Normal Year Supply and Demand Projections, 2020-2040......................................................... 212
Table 91 – RCSD Single Dry Year Supply and Demand Projections, 2020-2040 .................................................... 212
Table 92 – RCSD Financial Statements, FY 2015-FY 2017 ...................................................................................... 214
Table 93 – Rubidoux Community Services District Board of Directors .................................................................. 217
Table 94 – San Bernardino Valley Municipal Water District Population Projections, 2015-2040 ......................... 222
Table 95 – Valley District Normal Year Water Supply and Demand Projections, 2020-2040 ................................ 223
Table 96 – Valley District Single-Dry Year Water Supply and Demand Projections, 2020-2040 ........................... 224
Table 97 – SBVMWD Financial Statements, FY 2015-FY 2017 ............................................................................... 225
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Table 98 – SBVMWD Board Members ................................................................................................................... 229
Table 99 – TVWD Population Projections, 2015-2040 ........................................................................................... 233
Table 100 – TVWD Projected Groundwater Production, 2015-2040..................................................................... 234
Table 101 – TVWD –- Minimum Supplies, 2016-2018 ........................................................................................... 234
Table 102 – TVWD Normal Year Supply and Demand Projections, 2020-2040 ..................................................... 235
Table 103 – TVWD Single Dry Year Supply and Demand Projections, 2020-2040 ................................................. 235
Table 104 – TVWD Financial Statements, FY 2015-FY 2017 .................................................................................. 236
Table 105 – Temescal Valley Water District Board of Directors ............................................................................ 240
Table 106 – West Valley Water District Population Projections, 2015-2040 ........................................................ 244
Table 107 – West Valley Water District Groundwater Production, 2011-2015..................................................... 245
Table 108 – West Valley Water District - Minimum Supplies, 2016-2018 ............................................................. 246
Table 109 – WVWD Normal Year Supply and Demand Projections, 2020-2040 ................................................... 246
Table 110 – WVWD Single Dry Year Supply and Demand Projections, 2020-2040 ............................................... 246
Table 111 – WVWD Financial Statements, FY 2016-FY 2018 ................................................................................. 248
Table 112 – West Valley Water District Board of Directors ................................................................................... 253
Table 113 – WMWD Retail Population Projections, 2015-2040 ............................................................................ 257
Table 114 – WMWD Wholesale Population Projections, 2015-2040 .................................................................... 257
Table 115 – WMWD Total Groundwater Production, 2011-2015 ......................................................................... 258
Table 116 – WMWD Wholesale Normal Year Supply and Demand Projections, 2020-2040 ................................ 259
Table 117 – WMWD Single Dry Year Supply and Demand Projections, 2020-2040 – Wholesale Supply .............. 259
Table 118 – WMWD Financial Statements, FY 2015-FY 2017 ................................................................................ 263
Table 119 – WMWD Adopted Water Rates (2018) - Single Family Residential* ................................................... 266
Table 120 – WMWD Adopted Sewer Rates (2018) - Single Family Residential ..................................................... 266
Table 121 – WMWD “Top Ten” Current CIP Projects ............................................................................................ 267
Table 122 – Western Municipal Water District Board of Directors ....................................................................... 268
279
Countywide Water and Wastewater Municipal Services Review Volume 1
Riverside Local Agency Formation Commission Western County Region Water and Wastewater Agencies
List of Exhibits
Exhibit 1 – MET Service Area Map ........................................................................................................................... 20
Exhibit 2 – City of Corona ......................................................................................................................................... 28
Exhibit 3 – City of Hemet ......................................................................................................................................... 40
Exhibit 4 – City of Norco .......................................................................................................................................... 53
Exhibit 5 – City of Perris ........................................................................................................................................... 66
Exhibit 6 – City of Riverside...................................................................................................................................... 77
Exhibit 7 – City of San Jacinto .................................................................................................................................. 90
Exhibit 8 – Eastern Municipal Water District ......................................................................................................... 102
Exhibit 9 – Edgemont Community Services District ............................................................................................... 123
Exhibit 10 – Elsinore Valley Municipal Water District ............................................................................................ 133
Exhibit 11 – Home Gardens County Water District ............................................................................................... 148
Exhibit 12 – Home Gardens Sanitary District ......................................................................................................... 157
Exhibit 13 – Jurupa Community Services District................................................................................................... 166
Exhibit 14 – Lake Hemet Municipal Water District ................................................................................................ 180
Exhibit 15 – Rancho California Water District ........................................................................................................ 192
Exhibit 16 – Rubidoux Community Services District .............................................................................................. 209
Exhibit 17 – San Bernardino Valley Municipal Water District ................................................................................ 220
Exhibit 18 – Temescal Valley Water District .......................................................................................................... 231
Exhibit 19 – West Valley Water District ................................................................................................................. 242
Exhibit 20 – Western Municipal Water District ..................................................................................................... 255
280