At its meeting on October 23, the El Dorado Irrigation District Board of Directors adopted the 2024 – 2028 Capital Improvement Plan (CIP).

The five-year CIP allocates approximately $321 million to enhance and maintain EID’s extensive infrastructure over the next five years. This investment aims to ensure the District's services remain reliable and will focus on the rehabilitation of aging, essential infrastructure.

The CIP outlines comprehensive investments that focus on lifecycle asset replacements, health and safety enhancements, and meet legal and regulatory mandates. The CIP is a planning document and does not provide authorization for any particular project. Individual projects identified in the CIP are subject to subsequent Board consideration and authorization of funding on an individual project basis.

Funding for the CIP projects will come from planned bond issuances, pay-as-you-go funds from annual rate revenues and reserves, and facility capacity charge (new connection charges) revenues and reserves.

“EID is committed to maintaining a robust infrastructure across our 220-square-mile service area to ensure the safety and reliability of services to our customers,” said EID Director of Engineering Brian Mueller. “We use our capital planning process to strategically identify and prioritize essential projects to repair and replace this critical infrastructure.”

The District plans to issue a $60 million bond in 2024 and a $120 million bond in 2027 to fund vital infrastructure projects. These projects include, among others, the Silver Lake Dam replacement (estimated to cost $50 million), the Sly Park Intertie ($30 million), and $93 million for improvements to EID’s El Dorado Hills and Reservoir 1 water treatment plants.

Agencies like EID that must rehabilitate and replace high-value infrastructure projects use long-term, low-interest debt to fund these projects.

“Rehabilitating water treatment plants, replacing dams, these projects are high value and the facilities are expected to have long lives—and they cost a lot. EID has assets on the ground amounting to over $1.14 billion in historical costs,” said EID General Manager Abercrombie. “Since they are such long-lived assets—with useful lives of many decades or longer—we can use low-cost debt to pay for this vital infrastructure so it is more equitably spread across the decades of different customers who will benefit from them. Over the years, EID has successfully managed its debt portfolio and as debt is repaid, we are able to continue to use debt issuances in a smart and strategic way to reinvest in the long-term reliability of a system our customers and community count on every day.”

Cost of Service Analysis Shows Need for Increased Rates

The EID Board also accepted the Cost of Service Analysis (COSA) and authorized the issuance of a Proposition 218 Notice detailing proposed rate adjustments beginning in 2024 through 2028.

EID engaged with outside experts during the months-long COSA process, aiming to develop rates that cover the actual costs required to deliver essential wastewater and water services.

The COSA identifies the necessity for a 12 percent annual revenue increase for drinking and recycled water services over the next five years and a three percent increase for wastewater services, critical for meeting operational expenses, regulatory requirements, bond obligations, and funding reserves.

“We understand the impact of rate increases and we do not take these steps lightly,” said Abercrombie. “Our in-depth cost-of-service analysis showed us that we cannot achieve the needed reinvestment in our critically important infrastructure without adjusting rates. In 2024, an average EID residential bimonthly water bill will increase by $16.81 per two-month bill, or a little over eight dollars per month. For an average combined water and sewer bill the change is $19.61 every two months, or a little under $10 per month. In 2025 through 2028, similar increases are expected and they are described in detail on the Proposition 218 Notice. I cannot emphasize enough how important those extra dollars are to helping us reinvest in our aging infrastructure and keeping our services safe and reliable.”

EID issued the Proposition 218 Notice to all of its customers by mail. The notice outlines all proposed rate adjustments in detail and is located on the District’s webpage at www.eid.org/Prop218. The web page also includes calculators that will help residential customers (water, sewer, and recycled water) calculate how the 2024 rates will affect their bills.

How to Protest the Rate Adjustments

To protest the proposed new rates under Proposition 218, the owner of record for a parcel(s) that is subject to the proposed rate increases can submit a written protest against the proposed rate increases. Written protests should be mailed or hand delivered to 2890 Mosquito Road, Placerville, California 95667. Protests must be signed by the owner of record for the property, and must include the property location by either Assessor Parcel Number (APN) or address. Protests must be received by the District at or before the scheduled public hearing time of December 11, 2023, at 9:00 a.m. Electronic, faxed, or emailed protests are not valid and will not be counted.

Open Houses/Workshops

On November 13, 2023, and November 16, 2023, EID will hold two open houses/public workshops to describe needed infrastructure projects, their funding requirements, and listen to customer feedback on the proposed rate adjustments. Each event will begin at 5:30 p.m.

• Monday, November 13, 2023 at 5:30 p.m.
  Cameron Park Community Services District
  2502 Country Club Drive Cameron Park, CA 95682

• Thursday, November 16, 2023 at 5:30 p.m.
  El Dorado Irrigation District
  2890 Mosquito Road Placerville, CA 95667

 Public Hearing

• Monday, December 11 2023 at 9:00 a.m.
  El Dorado Irrigation District
  2890 Mosquito Road Placerville, CA 95667