Concerns Over Local Taxpayer Funds Diverted to State Water Project in Ontario

Ontario City Officials Demand Transparency from IEUA



In a recent development, the City of Ontario has raised significant concerns regarding the Inland Empire Utilities Agency's (IEUA) management of taxpayer funds, especially those allocated toward the Chino Basin Program (CBP). Local officials are pressing for greater transparency and accountability as IEUA moves forward with its ambitious water management agenda. Councilmember Debra Porada has been vocal about the implications of these decisions, emphasizing that the lack of clarity threatens the community's water security efforts.

Background on the Chino Basin Program


The Chino Basin Program is a massive undertaking by IEUA, which, in collaboration with six municipalities and a local water utility, has created a technical advisory committee aimed at guiding its projects. However, the lack of transparency in funding allocation for the CBP has raised eyebrows among community leaders. Porada remarked, "Our efforts to create water security for our residents are undermined by the Chino Basin Program," underscoring the effect these funding issues could have on local infrastructure development.

Despite a multi-jurisdictional advisory structure, IEUA has reportedly failed to maintain open communication concerning its budget proposals and rate increases. The agency's recent presentation to the Board of Directors included sweeping rate hikes, which raised concerns among committee members who pointed out that the proposals lacked adequate review time before meetings.

Financial Implications of Rate Increases


On March 5, IEUA laid out a series of proposed rate increases, including an 18% hike over the next two fiscal years for both Equivalent Dwelling Unit (EDU) wastewater rates and recycled water rates. These increases came after a prior adjustment of 13% in the past two years. Alarmingly, the Technical Advisory Committee, composed of representatives from cities including Chino, Ontario, and Fontana, unanimously denied support for these adjustments, citing insufficient time for thorough evaluation. Despite clear community opposition, the agency is poised to push these increases through on April 16.

The funding generated from these rates is critical, as it contributes to a cost that has ballooned from $600 million to more than $1 billion for the CBP. This project aims to treat and store 15,000 acre-feet per year of recycled water to replenish the Chino Basin aquifer while providing a substantial yield to the state.

Community Concerns


Local leaders are anxious about what this means for their residents. Porada stated, "IEUA is using local property tax dollars to transfer water to the State at substantial risk to our community, businesses, and residents." There is growing unease that local needs for water resilience will be overshadowed by state-directed priorities under this funding model.

The situation is compounded by the uncertainty surrounding whether wastewater operations funds would support the employees involved in the CBP. Local sources estimate that over the next two years, IEUA has allocated more than $15 million from taxpayer funds toward this initiative, with plans to recommend nearly $48 million for planning and design work in the near future.

Seeking Answers


The City of Ontario, along with other municipalities such as Chino and Montclair, have formally reached out to IEUA, requesting clarity on the costs and rate impacts associated with the project for local residents. Their letter, dated March 28, 2025, reiterates calls for a detailed response from IEUA on how these changes will affect community water security and rates.

As organizations continue to grapple with rising demands for water amidst changing climate conditions, the appropriateness of using local taxpayer funding for state projects remains a divisive issue. Advocates argue for the necessity of maintaining funds within local communities to safeguard against uncertain water resources.

In conclusion, as the April 16 Board meeting approaches, the urgency for IEUA to address community concerns and provide substantial transparency regarding the CBP and its rate increases is more pressing than ever. Will they address their stakeholders' needs effectively, or will this situation jeopardize local water security further?

For more information, residents can learn more at www.ontarioca.gov/government/municipal-utilities-company.

Topics Policy & Public Interest)

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