IEUA shifts fixed recurring charge collection to county tax roll to streamline regional billing

IEUA shifts fixed recurring charge collection to county tax roll to streamline regional billingThe Inland Empire Utilities Agency has authorized a phased transition to collect fixed wastewater and water charges directly via property taxes, relieving customer agencies of administrative pass-through burdens.

The board authorized staff to initiate Phase 1 of a collection strategy, moving EDU and MEU charges to the county tax roll for fiscal year 2027-2028.

The transition will eliminate the current model where seven customer agencies collect and remit regional charges to the IEUA.

A future Phase 2 will evaluate the direct collection of one-time wastewater connection fees from developers during the permitting process.

The Inland Empire Utilities Agency (IEUA) Board of Directors has authorized a major shift in how the agency collects its regional revenues, voting on August 19, 2026, to transition fixed recurring charges to the county property tax roll. Currently, IEUA relies on its seven customer agencies to collect the Wastewater Equivalent Dwelling Unit (EDU) and Water Meter Equivalent Unit (MEU) charges through local monthly utility bills. The local agencies then remit those revenues back to IEUA. Under the newly approved Phase 1 strategy, these fixed, parcel-based charges will instead appear as a single line item on annual San Bernardino County property tax bills beginning in fiscal year 2027-2028. Acting Manager of Rates and Revenue Alex Lopez told the board that the property tax roll was selected as the preferred long-term collection method because it is efficient, reliable, and consistent. "It eliminates the pass-through collection process for our customer agencies and allows IEUA to use the county's existing collection instead of building and operating a new billing option or program," Lopez said. The transition follows years of requests from member cities seeking relief from the administrative burden of processing Proposition 218 notices and managing pass-through collections on behalf of the regional agency. During the meeting, one director noted that local cities have been asking to be removed from the pass-through process for over a decade. Another director highlighted that the change will save significant time for both IEUA and city staff, who currently must navigate and reconcile differing billing procedures across the various municipalities. Lopez noted that IEUA staff recently met with six of the seven customer agencies to discuss the transition, receiving broad support. Implementation will require amending the Regional Sewer Service Contract and Ordinance No. 114, as well as conducting a Proposition 218-compliant Cost of Service Study and public hearing process before the charges are officially placed on the tax roll. While Phase 1 addresses the recurring EDU and MEU charges, IEUA is also planning a second phase to evaluate its connection fees. Phase 2 will explore the potential for IEUA to directly collect one-time wastewater and water connection fees from developers during the permitting process, further centralizing the agency's revenue collection.