A recent 18% rate increase for water services from the Inland Empire Utilities Agency drew the ire of officials from several cities in San Bernardino County and a local water district.
A city of Ontario statement called the IEUA board’s April 16 unanimous vote for the rate hike “a stunning disregard for public opposition and local economic realities.” Officials from Chino, Montclair and the Monte Vista Water District also voiced displeasure with the increase for water and sewer services.
“IEUA has chosen to ignore the voices of the very people it was created to serve,” Ontario City Councilwoman Debra Porada said in a statement. “This rate hike is not about local water reliability; it is about funding a billion-dollar project that sends our water to the State while our communities get stuck with the bill.”
The disgruntled local officials said the IEUA’s refusal to grant more time to consider the rate increase and “to meaningfully collaborate” with impacted cities and the water district.
“This wasn’t collaboration — it was a box-checking exercise,” Chino Mayor Eunice Ulloa said in a statement. “IEUA mischaracterized the process as thorough, while withholding key documents and dismissing any agency or person who raised concerns. Even the rate study that underpins this decision was withheld until the legal deadline, leaving no time for cities or residents to evaluate its assumptions or implications. Public governance requires more than legal compliance — it demands transparency, accountability, and respect.”
IEUA Board President Marco Tule defended the increase.
“The decision to raise rates is not made lightly,” stated Marco Tule, IEUA Board President. “However, it is a necessary and responsible step to ensure we can continue delivering safe, reliable, and sustainable services to the community. The adopted rates conclude the transparent process led by staff over the last seven weeks.”
According to IEUA, the higher rates and fees are needed to cover the rising cost of service that includes operational costs, infrastructure maintenance and replacement and regulatory compliance. The added revenue will go for upgrades to aging pipelines, water treatment facilities and system-wide improvements that aim to ensure long-term reliability and water quality.
“It is critically important that we balance the protection of our community’s public health and safety, the responsible maintenance of the region’s sewer system, the development of vital local water supplies, and rate affordability with escalating costs of doing business and the growing and evolving needs of our community,” Tule said. “The proposed rates remain less than or comparable to most of our industry and will fund critical infrastructure and staffing needs to ensure the reliability of our water and wastewater systems.”
Sewer fees will rise from $24.79 to $29.45 by fiscal year 2026-27, the IEUA reported.
At the center of the controversy is the IEUA’s Chino Basin Program, a large-scale recycled water treatment project that will transfer up to 100% of its yield to the state while local communities such as Chino, Montclair and Ontario struggle to maintain reliable, affordable water supplies, Ontario officials said.
The IEUA board approved an increase from $465 to $552.47 by 2026-27 for “recycled water direct” and from $200 to $216.32 for “recycled water groundwater recharge,” which is moving recycled water to replenish underground aquifers.
Ontario officials said IEUA board members approved the rate hike despite multiple letters from the public in opposition and a lack of support from the IEUA Policy and Technical Advisory committees.
“Member agencies had asked for additional time to review the proposed rates, but IEUA justified the denial by citing the internal timelines of one or two agencies — despite having approved past rate increases as late as July,” according to the Ontario statement.
Local officials also took issue with what they said were “disparaging public comments” during the April 16 meeting, with one board member allegedly saying, “’It’s not a whole heck of a lot of money, and people are going to be able to eat,’” according to the Ontario statement. “The board member went on to disdain those without technical backgrounds as unqualified to question the agency’s decisions.”
Monte Vista Water District Board President Sandra Rose said in a statement, “This kind of dismissive attitude toward public input is unacceptable. These decisions affect real families, and agencies should be equal partners in regional infrastructure planning.”
Local officials were also concerned about what they called the “IEUA’s shifting rationale” for using public funds, most notably property taxes. In the past the agency has dedicated a portion of property tax revenues to specific purposes, such as treating wastewater, but “now, without notice or clarity, those funds are being reframed as general reserves available for any use, effectively bypassing cost-of-service nexus requirements that protect ratepayers from unjustified charges,” according to Ontario officials.
Montclair Mayor Javier “John” Dutrey said in a statement, “This behavior is exactly why IEUA is facing growing legal scrutiny. You cannot run a public agency this way — with closed-door decisions, misleading public statements, and a blatant disregard for accountability.”
Tule countered, “The board believes in investing in the future of our community. Although this was a difficult decision, the cost-of-service study demonstrated to the board that without action today, the ramifications to our community due to inadequate investment would be tremendous. The board stands by our commitment to delivering essential services in a cost-effective manner to the people we serve with transparency, accountability and long-term vision.”
City and water district officials called for investments in local recycled water infrastructure that would deliver drought-resilient, cost-effective water. To date, the IEUA has not released sufficient information on the future capital investments, debt obligations or rate impacts associated with the CBP, according to the Ontario statement.
A joint letter from Ontario, Chino and Montclair sent March 28 requested clarification on how ratepayer and taxpayer dollars would be used, but the IEUA has not responded, officials said.
More information is available on the Ontario Municipal Utilities Co. webpage.
The IEUA’s Cost-of-Service/Rate Study is available at ieua.org/current-updates.
Other local entities the IEUA serves include Chino Hills, Fontana, Upland and the Cucamonga Valley Water District in Rancho Cucamonga.
