Valley Sanitary District outlines five-year rate plan, says recycled-water Phase 2 won't proceed without buyers

Jason Dafforn, general manager of Valley Sanitary District, told the City of Indio council on March 18 that the district will bring a proposed five-year rate structure to a public hearing on May 12 and that the plan includes two initial 12% increases followed by three years of smaller (about 4%) increases. He said the district's current average annual wastewater bill is $753.49 and presented monthly examples showing average monthly increases of about $7.51 in fiscal year 2027 and $8.41 in fiscal year 2028 before smaller increases in subsequent years.

The district serves roughly 91,000 people across Indio, Coachella, parts of La Quinta and unincorporated Riverside County, operates a plant capable of treating 12.5 million gallons per day, and manages 28,000 service connections. Dafforn said the capital improvement program will invest roughly $160 million over the next 10 years, including an $80 million recycled-water Phase 1 and a Phase 2 recycled-water facility intended to pull off about 1,000,000 gallons per day for nonpotable irrigation uses.

Why it matters: Dafforn said early-year increases fund necessary upgrades to aging infrastructure and large plant improvements; he told the council the Phase 2 project is being advanced in design but will not move to construction until the district secures guaranteed customers to buy the recycled water. "That project will not move forward into construction until we have secured our guaranteed customer," Dafforn said, noting the district is negotiating with potential buyers and has four possible customers under discussion.

Council members pressed staff on pricing and environmental safety. When asked how recycled water might compare with canal or groundwater, Dafforn said preliminary pricing is about $650 per acre-foot versus $150–$175 per acre-foot for canal water, and that grant funding plus long-term purchase commitments would be required to avoid subsidizing the facility from rate revenues. On biosolids, council members asked about PFAS testing; Dafforn said the district is monitoring PFAS at the plant, has discussed risk assessment with EPA staff, and is establishing background levels to guide next steps.

Public commenters also raised equity concerns about the scale of capital investment and possible local impacts such as odor. One speaker (S8) asked whether the projects were "wants or needs" and whether the costs would fall disproportionately on Indio residents. Dafforn replied that many projects respond to aging infrastructure (some lines and facilities are 70–90 years old), that the district is pursuing grants and regional partners, and that some projects will be deferred until partner commitments or additional funding are secured.

The district highlighted customer-focused programs intended to reduce bills, including a $25 shower-head rebate and other conservation incentives. Dafforn encouraged residents to visit the district website and attend the April 4 community open house and the May 12 public hearing.

Next step: The Valley Sanitary District will hold a public hearing before its board on May 12 and continue negotiations with potential recycled-water buyers; city residents can submit comments and attend the district's outreach events.