Olivenhain Municipal Water District Board Will Not Increase Capacity Fees in 2020
Olivenhain Municipal Water District’s Board of Directors voted unanimously at its August meeting not to raise water capacity fees in Fiscal Year 2021. After a comprehensive review, the board determined that current fees adequately cover OMWD’s planned capital expenditures through June 30, 2021.
Capacity fees are one-time charges to new development connecting to OMWD’s water system. Capacity fees are collected to fund necessary system expansion, replacement, and improvement projects to provide current and future ratepayers with a safe, reliable water supply.
OMWD’s board evaluates capacity fees each year to ensure that future development contributes its fair share for water infrastructure improvements.
“While operating costs and capital needs continue to grow each year, OMWD’s board remains concerned about the pandemic’s impact on the region’s economy and our customers,” said OMWD Board President Ed Sprague. “Due to various cost-cutting measures that the board has taken, including the deferment of non-critical projects to future years, capacity fees will not increase in 2020.”
The board’s decision was one of several in 2020 that has considered the potential impacts of COVID-19. Similarly, at its May 20 meeting, the board also opted not to increase rates for OMWD sewer customers in Fiscal Year 2021.