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Chino officials push back on Inland Empire Utilities Agencyproposed 18% rate increase
Summary
City of Chino officials raised questions about a proposed Inland Empire Utilities Agency (IEUA) rate study that would increase rates about 18% over two years and could raise the city's recycled-water costs by about $360,000 to nearly $400,000; city staff said they will seek follow-up information and an agenda item.
Chino elected officials told the Inland Empire Utilities Agency and agency representatives they are concerned about a proposed rate study that would raise wholesale utility charges about 18% over the next two years and could add roughly $360,000 to the city's current recycled-water costs, rising to almost $400,000 in 2026-27.
The concern emerged during council reports and follow-up discussion at the Chino City Council's March 18 meeting. Mayor Pro Tem Burton said he attended the IEUA policy committee meeting and called the proposed increases "a bit troubling." Public Works Director Hajin told the council the city is the largest local user of recycled water and estimated the near-term additional cost to the general fund at about $360,000, rising to nearly $400,000 the following year.
Why it matters: IEUA sets regional rates that cities pay for sewer and recycled-water services; increases would be passed through to municipal budgets and could affect local services funded from the general fund. Council members said they want more transparency on the numbers IEUA is using and whether alternative funding sources could reduce or delay rate increases.
At the meeting, Hajin outlined components of the IEUA plan discussed at the agency: a proposed two-year rate study, a potential $90 million bond for capital projects, and the existence of roughly $152 million in funds collected from developers for sewer expansion that JyHajin said could be applied instead of new borrowing. Hajin also said the city has collected about $22 million since the rate went into effect and is holding it in escrow for IEUA.
Councilmembers pressed on a separate $24 million property-tax transfer that Hajin said IEUA had identified for early design work on the Chino Basin Program. Councilmember Lucio and others questioned whether property-tax proceeds intended for Chino Basin efforts should be used for projects the city has not formally endorsed.
City Manager Fred Reich (City Manager) told the council staff is already engaged with IEUA staff and that the city will pursue follow-up information. Reich said, "Well, at this point I'm working with your staff. If you'd like a follow-up, we could certainly put it as an information item on a follow-up agenda." The council requested staff return with additional documentation and legal or fiscal analysis.
What was decided: The council did not vote to accept or reject IEUA's proposal at the meeting. As a next step, staff agreed to seek clarification from IEUA on the rate methodology, the necessity of proposed bonding, and the planned use of the $24 million in property-tax funds for Chino Basin Program early design. Councilmembers also said they expect IEUA's board deliberations in April and signaled they will advocate for local transparency.
Votes at a glance: The council approved the consent calendar during the meeting. Motion to approve the consent calendar: moved by Councilmember Flores, seconded by Councilmember Karen Comstock; outcome: passed unanimously.
The council's follow-up could affect the city's budget planning and the timing of any rate increases that IEUA implements; no formal rate change was enacted by the city at the March 18 meeting.
