For City Council Meeting January 13, 2026
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Sachin Chawla, Director of Utilities
Title
Request City Council/Rialto Utility Authority to Conduct a Public Hearing, as Required Under Proposition 218, Adopt Resolution No. 8446 and RUA Resolution No. 26-01 Approving the Proposed Adjustments for Water and Wastewater Services as supported by the Water Resources Economics Rate Study (October 2025).
PRESENTATION
(ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council/Rialto Utility Authority Board conduct a public hearing and adopt resolutions approving the proposed adjustments for Water and Wastewater Services as supported by the Water Resources Economics Rate Study (October 2025).
BACKGROUND
Since 2012, the City has implemented rate adjustments only in 6 years over a 13-year period, reflecting a measured and deliberate approach to balancing infrastructure investment needs with ratepayer affordability. Over time, this approach has resulted in periods where inflationary pressures and capital investment requirements increased at a faster pace than utility revenues, contributing to the need for rate stabilization from the General Fund.
On July 23, 2024, the City Council/Rialto Utility Authority (RUA) Board adopted a one-year rate adjustment effective January 1, 2025, consisting of a 15 percent revenue adjustment for water services and a 6 percent revenue adjustment for wastewater services. The one-year adjustment was based on a five-year financial projection, and 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 reevaluation, staff presented 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 feedba...
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