Indio water authority seeks 5% annual rate increases to shore up projects, prepare for chromium-6 costs

The Indio City Council approved, as part of the consent calendar, staff’s request to initiate a public notification process for a proposed five-year water-rate adjustment for the Indio Water Authority (IWA).

IWA General Manager Brent Trajol told the council the proposal calls for roughly a $2.50 increase per month for a standard residential customer and a 5% year-over-year adjustment for the next five years. Trajol said the increase is intended to maintain reserves, fund planned capital projects and cover soft costs — including about $2 million earmarked for consultants and design work to pursue grant funding for Chromium‑6 treatment.

The proposal comes after no rate increase since February 2018, Trajol said. He told council that IWA completed roughly 7,700 inspections and 6,400 treatments in Indio in 2024 and that maintaining ongoing service and implementing capital work requires additional revenue. He said one regional stormwater project will require relocating a pipeline in north Indio, a change he estimated at roughly $1 million.

Why it matters: the state has proposed a maximum contaminant level (MCL) for Chromium‑6 that would require costly treatment for affected wells. Trajol said the state’s cost-estimate model puts capital treatment costs for Indio at about $130 million. Trajol said IWA cannot fund that capital cost through the modest rate increase; instead, the proposed 5% increases are intended to pay for design and grant-application work so the city can compete for state funding, including monies available under Proposition 4.

Council members asked about the regional scale of the problem and grant prospects. Trajol and staff said the Coachella Valley and neighboring agencies face similar issues and that regional coordination is underway; they noted Proposition 4 includes earmarks that could be used for Chromium‑6 work but that the amount and timing remain uncertain.

Council action and next steps: the council voted to approve the intent to proceed with public notification (consent calendar item 9.5). Trajol said staff will mail a detailed outreach packet — roughly 20 pages — showing sample billing scenarios in English and Spanish and will host a community forum on April 15 at 5 p.m. to present details.

Quotations "If we continue to operate without raising the rates ... we will fall short of maintaining reserves," Trajol said. "We are proposing a 5% year-over-year rate increase for the next five years."

"The $130,000,000 is based on the state's cost model ... that's the number we're using in terms of proceeding with grant funding opportunities," Trajol said.

Ending Staff and council described the rate-notice step as the beginning of a public outreach process. If the council proceeds after the public-notice period and hearings, the planned increases would be phased in over five years and staff would continue to seek grant funding for the large capital costs tied to Chromium‑6 treatment.