Report to City Council
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TO: Mayor and City Council
FROM: Melissa Walker, Public Works Director/City Engineer
AGENDA DATE: June 2, 2026
TITLE: PUBLIC HEARING AND ADOPTION OF A
RESOLUTION CONFIRMING THE NATIONAL
POLLUTANT DISCHARGE ELIMINATION SYSTEM
REGULATORY RATE SCHEDULE (REPORT OF:
PUBLIC WORKS) (ALL DISTRICTS)
TITLE SUMMARY: Public Hearing And Adopt ion of Resolution N o. 2026-XX Confirming The Fiscal Year 2026/2027 Annual Rates For
National Pollutant Discharge Elimination System Regulatory Rate Schedule For New And Existing Residential, Common
Interest, Commercial, Industrial, And Quasi -Public Use Development
DISTRICT: All Districts
Recommendation(s)
That the City Council:
1. Conduct a Public Hearing to review and confirm the annual regulatory rate schedule for the National Pollutant Discharge Elimination System Program for new residential, common interest, commercial, industrial, and quasi-public land uses;
2. Adopt Resolution No. 2026-XX, a Resolution of the City Council of the City of Moreno Valley, California, authorizing and approving the levy of the National Pollutant Discharge Elimination System regulatory rates for new and existing residential, common interest, commercial, industrial, and quasi-public development on the County of Riverside property tax roll; and
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3. Authorize the Chief Financial Officer to adjust the ra tes levied on property tax bills if parcel changes or other adjustments occur between the City Council meeting date and the submission of the charges to the County of Riverside , provided the applied rates do not exceed the maximum approved rates and remain consistent with the ballot and adopted budget.
SUMMARY
This report recommends that the City Council conduct a Public Hearing to receive public input on the proposed maximum and applied National Pollutant Discharge Elimination System regulatory rates for Fiscal Year 2026/2027.
The proposed maximum rates reflect an annual inflation adjustment based on the Consumer Price Index, as previously approved by property owners. Revenue generated from these rates supports services provided through the City’s Storm Water Management Program and is included in the proposed budget for Fiscal Year 2026/2027.
National Pollutant Discharge Elimination System rate revenue is restricted and may only be used for Storm Water Management Program services. Adjustments to applied parcel charges may occur based on service level changes.
DISCUSSION
The Clean Water Act of 1987 established requirements regulating the discharge of urban runoff from Municipal Separate Storm Sewer Systems (MS4s) under the National Pollutant Discharge Elimination System (NPDES) program. This program is administered by the Santa Ana Regional Water Quality Control Board through an NPDES permit.
As a requirement of the program , property owners are required to provide a funding source to support NPDES program activities. T o ensure compliance, t he City Council adopted the residential regulatory rate on June 10, 2003, and the commercial/industrial rate on January 10, 2006. These rates fund compliance activities associated with development and help reduce impacts to the General Fund.
Revenue from the commercial and industrial regulatory rates support annual inspections of site design and Best Management Practices (BMPs) , monitoring of maintenance records, and annual compliance inspections. Revenue from the residential regulatory rate supports ongoing operation and maintenance of storm water treatment system s, and program monitoring and compliance inspections.
The attached resolution establishes the proposed maximum and applied regulatory rates and authorizes the County to include these charges on the Fiscal Year (FY) 2026/2027 property tax roll. The proposed applied rates are consistent with the City’s adopted budget.
Proposed Regulatory Rates
The proposed rates apply to each assessable parcel required to comply with the City’s NPDES Storm Water Management Program previously approved by property owner ballot. The FY 2026/2027 maximum rates are calculated by applying a 3.01% Consumer
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Price Index adjustment to the prior yea r’s maximum rates, consistent with voter authorization.
The applied regulatory rate represents the actual amount levied and is based on the cost of providing required services. While the applied rate may be lower than the maximum rate, it cannot exceed it. An analysis of each parcel, including development status and maintenance needs, was conducted to determine appropriate service levels and corresponding rates.
For FY 2026/2027, the proposed maximum regulatory rate for single -family residential development is $433.19 per parcel. The proposed maximum regulatory rate for common interest, commercial, industrial, and quasi-public use development is $326.20 per parcel.
Applied rates for each parcel are available at the City Clerk’s office as well as posted online at https://moval.gov/departments/public_works/services-stormwater.html.
ALTERNATIVES
1. Approve the recommended actions as presented in this staff report. Staff recommends this alternative to ensure placement of the NPDES regulatory rates on the County property tax roll.
2. Do not approve the recommended actions as presented in this staff report. Staff do not recommend this alternative, as it may limit the City’s ability to place the rates on the County property tax roll and could increase General Fund obligations.
FISCAL IMPACT
Projected FY 202 6/2027 revenue from the applied NPDES regulatory rates is $1,002,168.88, as included in the City’s budget detail (Attachment 2). Costs not recovered by NPDES revenue are subsidized by other funding sources, including the General Fund.
NOTIFICATION
Publication of the Agenda.
Newspaper notices were published on May 18, 2026, and May 26, 2026.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Rae Beimer Melissa Walker, P.E.
Stormwater Program Manager Public Works Director/City Engineer Concurred By: Concurred By:
Larry Gonzales, P.E. Harold Zamora, P.E.
Land Development Principal Engineer Engineering Division Manager/Assistant City Engineer
CITY COUNCIL GOALS
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Public Facilities and Capital Projects: Ensure that needed public facilities, roadway improvements, and other infrastructure improvements are constructed and maintained.
Revenue Diversification and Preservation: Develop a variety of City revenue sources and policies to create a stable revenue base and fiscal policies to support essential City services, regardless of economic climate.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
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Report Approval Details
Document Title: STAFFREPORT_PW_LDD_NPDES_REGRATE.docx
Attachments: - Attachment 1_Resolution 2026-XX NPDES Reg Rate.docx - Attachment 2_FY 26-27 Budget Detail.pdf
Final Approval
Date:
May 27, 2026
This report and all of its attachments were approved and signed as outlined below:
Melissa Walker
Sean Kelleher
Natalia Medina
Felicia London, MPA
Launa Jimenez
Brian Mohan
Patty Rodriguez