For City Council Meeting October 28, 2025
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
Title
Request City Council/Rialto Utility Authority Board Set a Public Hearing for January 13, 2026, and establish Utility Rate Setting Procedures through Adoption of Resolution No. 8418 and RUA Resolution No. 08-46 Regarding Water and Wastewater Utility Services Rate Adjustments.
Body
RECOMMENDATION
Staff recommends that the City Council/Rialto Utility Authority Board set a public hearing and establish Utility Rate Setting Procedures through adoption of resolutions setting a public Hearing regarding Water and Wastewater Utility Services Rate Adjustments.
BACKGROUND
On July 23, 2024, the City Council/Rialto Utility Authority (RUA) Board adopted a one-year rate adjustment, effective January 1, 2025, for water and wastewater services. The one-year rate was based on a five-year financial projection. Staff were directed to return in 2025 with an updated rate analysis for Council/RUA Board reevaluation.
In accordance with the City Council's direction to return in 2025 for a reevaluation, staff is preparing to present an updated analysis to the City Council/RUA Board to reassess the water and wastewater rates. On July 24, 2025, staff shared a proposed schedule for the rate study with the Water Subcommittee and requested feedback to support the development of the updated rate analysis. Further, on September 18, 2025 the Water Subcommittee reviewed the proposed rates and recommended they go before the City Council for adoption.
ANALYSIS/DISCUSSION
Staff representing both the City and RUA are working with the contracted utility service provider, Rialto Water Services, LP (RWS), along with the City's financial consultant (Sanjay Guar and his team at Water Resources Economics) to prepare a financial analysis and rate study to determine the potential rate increases necessary to cover the costs of providing utility services in compliance with the 201...
Click here for full text