San Diego City Council could OK proposal to hike water rates 63% by 2029
Water and wastewater rates in the city of San Diego could rise dramatically in the next four years if the San Diego City Council on Tuesday approves rate hikes to offset rising costs.
If approved Tuesday, water rates will increase by 63% through 2029 and wastewater rates by 31%.
The first increase would take effect in January. Rates all rise at a similar percentage, from the smallest meter sizes (5/8 and 3/4 of an inch) to 16 inches. Here’s how much the monthly water service charge would increase for a 1-inch meter:
- Current rate: $46.63
- January 2026: $56.83
- January 2027: $65.08
- January 2028: $72.57
- January 2029: $80.56
The city said it works to minimize rate increases, but the latest rate hikes for customers are necessary because the city itself is paying more for water.
“The main driver of the water rate increase is higher costs to purchase water from the San Diego County Water Authority, which are passed on to the city’s customers,” a statement from the city read. “Purchasing water from the SDCWA is the second largest individual expense for the entire city of San Diego.”
The rate increases will also allow the city to address “critical challenges,” including “replacing aging infrastructure, addressing rising costs for materials, chemicals, and energy used in the treatment and distribution of water and the collection, conveyance, and treatment of wastewater, and maintaining competitive compensation to attract and retain the skilled staff that keep our system safe and provide excellent customer service.”
Three dozen people signed up to speak ahead of the vote at Tuesday’s San Diego City Council meeting. One speaker didn’t think it was fair that the extra costs were going to the consumers.
“When you need money to pay the bills in San Diego, you come to us. Where are we supposed to go for that extra income? My husband and I are in our 80s. Where do you suggest we go to pay for the increases?” the speaker said.
A report released Friday by the city’s Independent Budget Analyst found that the costs were a bitter pill to swallow, but necessary medicine all the same. It said increasing costs, along with stagnant water sales and wastewater flows have contributed to the need for increased rates.
Citing studies from the Public Utilities Department, the report show the need to increase water and waste revenues in order to maintain operations; otherwise, cuts will need to be made.
“In the current environment of declining water sales and wastewater flows which generate revenue for the systems, this inevitably means increasing rates,” the IBA report read. “Without additional revenues to support the system, PUD will need to cut expenses, either through decreased operating costs or lower spending on the Capital Improvements Program. Both of these options come with significant risks and tradeoffs that the council should be aware of prior to making their final decision.”
“The wastewater system is in a healthier position due to regular rate increases over the past four years, while the water system is in the most need of financial assistance due to increasing water purchase costs and lower financial buffers due to the lack of regular rate increases prior to 2023,” it read.
The San Diego City Council will discuss the cost increases at its 2 p.m. session Tuesday.