Rialto council approves reduced water and wastewater rate increases to fund infrastructure

Rialto City Council / Successor Agency / Rialto Utilities Authority / Rialto Housing Authority · January 26, 2026

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Summary

After staff reduced proposed increases, the council approved an 8% initial water rate increase (down from a prior 23% proposal) and a 3% annual wastewater increase to fund capital improvements and avoid drawing general fund reserves. Council also confirmed senior and low‑income discount programs.

Rialto’s City Council approved revised water and wastewater rate schedules intended to fund critical utility capital projects and reduce long‑term system risk.

Utilities Director Sajid Shavala and consultant Sanjay Gaur presented a revised proposal that staffs said reduces the water increase from a previously proposed 23% (Prop 218 maximum scenario) to an 8% first‑year increase followed by lower increases in subsequent years. For wastewater, staff recommended a 3% annual increase instead of the previously proposed 5%, and proposed a $6 million debt issuance planned for 2027 to smooth capital costs.

Staff said they identified about $8.65 million in additional funds and grant opportunities to reduce the need for larger rate increases. The example impacts shown by staff estimated a typical water bill rising from about $65 to $70.51 in the first year under the revised plan. Council and staff noted that failing to raise rates could require general fund transfers estimated at roughly $14–16 million this fiscal year and an additional ~$15 million in the next fiscal year, jeopardizing reserves and other city priorities.

Public testimony included support from trade unions and construction representatives who argued that infrastructure investment will create local jobs and training opportunities. Ben Pratt of IBW Local 477 and Thomas Ruiz of the Laborers International Union urged passage to avoid cost escalation and to create apprenticeship opportunities.

Council approved the water rate resolutions (City and RUA resolutions) by motion and voice vote and later approved wastewater rate resolutions, with roll call votes recorded as unanimous. Staff noted programs that provide a 20% discount to qualifying senior and low‑income customers and said they would follow up with updated program enrollment figures.