Redlands moves forward with smaller water, wastewater rate hikes

REDLANDS, Calif. — The Redlands City Council on April 21 unanimously moved forward with proposed increases to water and wastewater rates, but with smaller increases than previously projected. 

Council directed staff to begin the notification process required under Proposition 218. A public hearing will follow before any final decision is made.

Why it matters: The city’s water and wastewater systems face mounting costs tied to aging infrastructure, regulatory requirements and major capital projects, including tens of millions of dollars in planned upgrades. 

Officials say failing to invest could risk system failures and environmental harm, particularly at the wastewater treatment plant, which processes about 6 million gallons daily and cannot be shut off.

Details: The Utility Advisory Committee is recommending a phased approach over the next two and a half years. Here is a breakdown of the proposed increases:

• Wastewater: 7% annual increases through fiscal year 2028–29
• Potable water: 2.5% annual increases
• Non-potable water: No increase due to strong reserves

The proposal represents a reduction from earlier projections, which had anticipated wastewater increases in the 10% range or higher.

If approved, the first increase would take effect Jan. 1, 2027.

City officials estimate the initial impact to be sitting at about $2.75 more per month for wastewater and about $8.32 more per bimonthly bill when combined with water.

Actual bills will vary depending on usage and property characteristics.

What they’re saying: Officials emphasized that the increases are necessary to maintain essential services and avoid larger costs later.

“The wastewater flow to the treatment plant cannot be stopped,” John James, the chair of the Utility Advisory Committee, said. “Failure to treat and discharge on a real-time basis could result in environmental disaster.” 

Officials credited staff and the advisory committee with finding ways to reduce the impact, including phasing projects and adjusting timelines.

“I was expecting somewhere in the 10 to 15% range,” City Manager Charles Duggan said during the meeting. “Kudos to the staff and the committee for working really hard to keep that down to 7%.”

Zoom out: Redlands is planning more than $130 million in water and wastewater infrastructure projects over the next three years, including roughly $45 million for wastewater improvements.

The city is also working to maintain strong reserve levels and preserve its high credit rating, which helps secure favorable financing such as state-backed loans.

Moving forward: The city will now send notices to ratepayers outlining the proposed increases and how to file protests.

A public hearing will be scheduled where residents can weigh in before the council takes a final vote. Under Proposition 218, the increases can only move forward if a majority protest is not received.