Local Agencies Condemn IEUA's Rushed Rate Hike Vote, Cite Lack of Transparency and Accountability

ONTARIO, Calif., April 22, 2025 /PRNewswire/ -- In a stunning disregard for public opposition and local economic realities, the Inland Empire Utilities Agency (IEUA) voted unanimously last Wednesday to approve an 18% rate hike, spread over two years, despite clear opposition from multiple member agencies, concerns from the public, calls for more transparency, and requests for more time to study the matter.

In a joint statement, local agency leaders for Chino, Montclair, Monte Vista Water District, and Ontario called IEUA's vote "deeply disappointing and procedurally flawed," pointing to the agency's refusal to grant additional time for review, or to meaningfully collaborate with the cities and agencies most impacted.

"This wasn't collaboration—it was a box-checking exercise," said Chino Mayor Eunice Ulloa. "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."

Despite multiple comment letters in opposition to the rate hike, and a clear absence of support from IEUA's own Policy Committee and Technical Advisory Committee, the IEUA Board voted unanimously to adopt the increase. Member agencies had requested 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.

At the center of the controversy is IEUA's Chino Basin Program (CBP), a massive recycled water treatment project that promises to transfer up to 100% of its yield to the State of California while local communities like Chino, Montclair, and Ontario continue to struggle with water reliability and affordability.

"IEUA has chosen to ignore the voices of the very people it was created to serve," said Ontario City Councilmember Debra Porada. "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."

IEUA Board members also made several disparaging public comments during the meeting, with one member saying, "It's not a whole heck of a lot of money, and people are going to be able to eat." The Board member went on to disdain those without technical backgrounds as unqualified to question the agency's decisions.

"This kind of dismissive attitude toward public input is unacceptable," said Monte Vista Water District Board President Sandra S. Rose. "These decisions affect real families, and agencies should be equal partners in regional infrastructure planning."

Adding to concerns is IEUA's shifting rationale for how it is using public funds—particularly property taxes. Historically, IEUA has dedicated a portion of property tax revenues to specific purposes, like wastewater treatment. 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.

"This behavior is exactly why IEUA is facing growing legal scrutiny," said Montclair Mayor Javier "John" Dutrey. "You cannot run a public agency this way—with closed-door decisions, misleading public statements, and a blatant disregard for accountability."

The four agencies continue to advocate for investments in local recycled water infrastructure that would deliver drought-resilient, cost-effective water for the communities they serve. To date, IEUA has not released sufficient information on the future capital investments, debt obligations, or rate impacts associated with the CBP.

A joint letter from these cities was submitted on March 28 requesting clarity on how ratepayer and taxpayer dollars would be used. IEUA has not responded.

Residents are encouraged to stay informed, speak up, and continue to hold regional agencies accountable. For more information, visit: www.ontarioca.gov/government/municipal-utilities-company

SOURCE City of Ontario