PWD Board Approves the Modification to the District’s Existing Capital Improvement Fees and Addition of a Water Supply Fee Component for New Development, No Burden to Existing Rate Payers

PALMDALE, CA, Nov. 5, 2013 In order for the Palmdale Water District to continue approving the construction of new water service connections to the water system and committing to providing reliable water supply, the District established an equitable revenue source that will fund the development and/or acquisition of new water supplies to support new development. On October 23, 2013, the Palmdale Water District Board of Directors approved a resolution that modifies the existing Capital Improvement Fees and adds a Water Supply Fee component. The Board of Directors carefully considered various options and after working closely with the Los Angeles/Ventura Chapter of the Building Industry Association, the Board adopted a resolution making the modifications to the Capital Improvement Fees that will become effective January 1, 2014. New development will pay the fees based on their water supply and demand needs to provide sufficient water for their projects. Through this fee, new development will fund the cost of new water supply and existing customers will not be impacted by the implementation of this fee.

In 2010, the District approved the Strategic Water Resources Plan (SWRP), which identifies necessary steps in order to meet the projected future needs of its customers. In 2012, the District certified the Programmatic Environmental Impact Report for said SWRP. The population within PWD’s service area is expected to more than double over the next 25 years. The anticipated water supply needs to meet the water demands will also double. The questions are; How much water is needed?, Where will the water come from?, What facilities will be needed?, What will it cost and where will the money come from? The answer to these questions and options for solving the projected water needs are unveiled in the SWRP. This one-time fee imposed on new development will be collected by the District and will fund new imported water acquisitions, groundwater recharge and recovery facilities, and recycled water facilities.