EMWD approves joint financing for $14 million in water and sewer infrastructure at Perris logistics hub

EMWD approves joint financing for $14 million in water and sewer infrastructure at Perris logistics hubThe district's board authorized a rare commercial Joint Community Facilities Agreement (JCFA) to fund utility improvements for a 6-million-square-foot industrial campus, while also greenlighting $15 million in special tax bonds for two residential communities.

EMWD will own and operate an estimated $14 million in water and sewer facilities financed through the City of Perris CFD No. 2022-2.

The board authorized up to $10 million in special tax bonds for the Sunstone development and $5 million for the Belle Terre community.

The commercial JCFA required case-by-case approval under EMWD's revised debt policy to ensure residential ratepayers do not subsidize the infrastructure.

The Eastern Municipal Water District (EMWD) Board of Directors voted on April 15 to enter into a Joint Community Facilities Agreement (JCFA) with the City of Perris to finance an estimated $14 million in water and sewer improvements for a major industrial development. The agreement leverages City of Perris Community Facilities District (CFD) No. 2022-2 to fund infrastructure for the Perris Logistics Center, a planned 363-acre campus featuring six industrial warehouse buildings totaling approximately 6 million square feet. EMWD will own and operate the water and sewer improvements financed through the CFD, while the city will fund an additional $18.6 million in municipal improvements. EMWD Chief Financial Officer Thomas Hays noted during the meeting that commercial CFDs are rare within the district's service area. Following an August 2025 update to EMWD's Comprehensive Debt Policy, participation in commercial JCFAs is evaluated on a case-by-case basis to protect residential ratepayers. Hays emphasized that the City of Perris will bear the administrative burden of the CFD and the levy of special taxes, which will be paid by the commercial property owners—including developer IDI Logistics, LLC—and likely passed on to tenants through lease agreements. "Our ratepayers aren't subsidizing any costs related to this," Hays said. "For us to enter into the JCFA is really just allowing our facilities to be funded with tax-exempt bonds that are issued by the CFD." In parallel with the commercial agreement, the EMWD board authorized the issuance of up to $15 million in special tax bonds to reimburse developers for water and sewer infrastructure at two residential communities. The board approved a bond sale of up to $10 million for CFD No. 2024-109 (Sunstone), a 154-home development by Lennar Homes of California, LLC. The district also authorized up to $5 million in bonds for CFD No. 2013-63 Improvement Area D (Belle Terre), a 180-home neighborhood developed by Taylor Morrison of California, LLC. Both residential bond sales are expected to price in late April and close in mid-May 2026. Separately, EMWD General Manager Joe Mouawad briefed the board on the Metropolitan Water District of Southern California's newly adopted 2027 and 2028 biennial budget. Mouawad reported that the budget includes a 6.2 percent overall rate increase for each year, closely aligning with EMWD's internal forecasts. The MWD budget also appropriates $875 million for capital improvement projects and $150 million to further planning and design for the Pure Water Southern California recycled water project.