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Coachella city staff warn Chromium‑6 cleanup could drive double‑digit rate hikes; 07/01/2027 set as implementation target
Summary
A draft NewGen rate study presented to the Coachella City Council shows worst‑case water rate revenue needs that could raise bills by about 131% over five years — driven largely by Chromium‑6 compliance (a draft capital need of $49.1 million). Staff urged preparing a Prop 218 notice as a ceiling while pursuing grants to lower impacts.
City staff and consultants told the Coachella City Council on March 11 that a draft cost‑of‑service study shows large potential water and sewer rate increases if the city must fully fund Chromium‑6 treatment and related capital.
"We're talking worst‑case scenarios about fully funding Chromium‑6 improvements," said Eric Kolokia, partner at NewGen, presenting the draft. The study estimates a water operating shortfall of about $1.6 million this fiscal year and projects a five‑year revenue recommendation that, in the model’s worst case, would require up to a 131% cumulative increase in water rates above today’s levels to cover operating, capital and Chromium‑6 debt service. For sewer, the five‑year projection in the draft points to roughly a 35%…
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