The Capital Maintenance Fee (CMF) is a charge based on meter size. For customers with a 5/8” meter (almost 70% of our customers) the annual fee would be $163.50, or $13.63 per month.
Funds raised through the CMF will go directly to the District’s Capital Improvement Program (CIP), which is dedicated to maintaining, upgrading, rehabilitating and building resiliency into our existing and aging assets. A portion of the CMF, $1 million per year, will be dedicated to fund increased fire reduction efforts on our watershed.
The CMF will support our 10-year capital improvement plan (which may change as the District’s Asset Management Program gears up), pay for needed capital improvements without escalating debt for normal maintenance, stabilize monthly rates, and save millions of dollars in interest and fees for ratepayers. The CMF will be effective July 1, 2019. Each July 1 thereafter through and including July 1, 2024, the CMF may automatically be increased or decreased to keep pace with inflation. The annual increases/decreases will be benchmarked to the industry standard Engineering News-Record (ENR) Construction Cost Index. Increases will be capped at 4% increases annually. The CMF will not apply to dedicated private fire service lines.
MMWD has established a Citizen Advisory Panel (CAP) on Infrastructure Investments to offer input on the CIP regarding investment priorities. The Panel will also review annual expenditures and provide the MMWD Board and management with additional feedback on annual infrastructure funding needs. The CAP presented the MMWD Board a summary letter with recommendations.