Upland council adopts phased water and sewer rate increases, declines two-thirds threshold for tax-roll collection

The Upland City Council on June 8 adopted a set of phased water, sewer and recycled-water rate increases intended to fund a five-year program of infrastructure repairs, regulatory compliance and staffing improvements.

City staff and the council framed the increase as a gradual, five-year approach: consultants said the first-year adjustment, effective July 1, 2026, will produce a typical single-family bimonthly bill increase of about $5.58 (roughly 3.5%), with 5% revenue adjustments proposed in subsequent years. The proposed schedule also includes a recommended maximum pass-through authority of 15% for wholesale charges set by the Inland Empire Utilities Agency (IEUA); IEUA staff are projecting roughly 9% wholesale increases for the next two years.

"These master plans identified aging pipelines, reservoirs and other critical needs," Damien Raul, assistant city manager and public works director, told the council. He said reserves could fall below target levels by about 2029 for water and 2034 for sewer if the city does not secure additional revenues. "We want to strike a balance so we don't defer maintenance and end up with larger rate spikes later," Raul said.

The consultant who led the cost-of-service study, Sudhir Pardiwala of Raftelis, said staff trimmed earlier, higher proposals after a detailed 18-month review to reduce customer impacts. "We worked with staff to minimize the effect on customers while addressing long-term capital and regulatory needs," Pardiwala said.

Public comment at the formal Proposition 218 hearing was brief but pointed. Glenn Bozar, a longtime resident and former council member, challenged comparisons to other agencies and said some current rate elements have risen substantially over the last decade. "When you look at the proposed tier changes, they're very large compared to 10 years ago," Bozar said. Blanca, an Upland resident, asked the council to weigh affordability concerns for households facing rising costs. Joseph Mitchell described seniors on fixed incomes and urged the council to consider their budgets.

The city clerk reported 45 valid written protests submitted prior to the close of the hearing, far short of the 10,082 written protests required to constitute a majority protest under Proposition 218; the clerk advised that a majority protest does not exist. Council then moved to adopt the resolutions necessary to implement the rates.

The council approved the resolutions by vote. City staff noted an important limitation: the council did not reach the two-thirds threshold needed to authorize placing delinquent water/sewer charges on the property tax roll, a collection tool that would make recovery of long-term unpaid balances easier. The city attorney warned that without a two-thirds vote the city cannot place unpaid utility charges on tax bills.

Staff and several council members stressed that a significant portion of Upland's sewer bill is a wholesale treatment charge over which the city has limited control. "Roughly 71% of the total sewer rate is set by a partner agency," Raul said, referring to IEUA, which the city passes through without markup.

City staff provided additional context for the spending needs: the water enterprise includes roughly 23,000 meters, 11 active wells and more than 439 miles of water lines; staff said some PFAS treatment options could cost $5 million to $15 million depending on scope. Staff also reported approximately $62 million in combined water fund balances but cautioned portions are restricted for loans and reserves.

Next steps: the new rates are authorized to take effect on the schedule adopted by the council (first effective actions in mid-2026 and phased increases thereafter). Council and staff said they will continue to monitor wholesale IEUA charges and update the public on implementation and any future adjustments.

Quote selections are drawn from testimony and council discussion at the June 8 meeting.