Get ready for higher water bills: San Diego rates could rise nearly 18 percent over the next two years
A new study says San Diego needs to raise water rates 17.6 percent over the next two years to fund the city’s Pure Water wastewater recycling system and to cover the rising costs of buying imported water and replacing aging pipes.
The average monthly bill for a customer in a single-family home would increase from $81.07 to $95.03 in November 2023, and to $103.06 in January 2025. Bills for high-volume water users would likely rise even further.
San Diego’s water rates would move from below the current median of local water agencies to above the current level. The only county water agencies with current rates higher than projected levels are Rincon del Diablo, Fallbrook, Padre Dam, Rainbow and Del Mar.
San Diego’s water system supplies the entire city except for Rancho Bernardo, the cities of Del Mar, Coronado and Imperial Beach. It serves approximately 270,000 customer accounts and 1.4 million people.
City water officials stressed that rate increases are subject to City Council approval and can be softened or delayed by the city council.
They also said the jumps would be steep without using $78 million in temporary resources to smooth them out.
That money comes from the city of Mission Valley’s sale of land to San Diego State University for a new campus, settlement payments the city received from the Metropolitan Water District and a move to reduce how much imported water the city holds in reserve.
The proposed increases are recommended by a council-hired consultant, Raftelis. A second consultant, Stantec, will carry out a similar analysis in February that will criticize the work of the first consultant.
When that process was followed for sewer rates last year, the council charged customers with lower rates than the first consultant had recommended. The municipality plans to end the increase in water rates in June.
City water officials say the increases are necessary to maintain and improve the vast, aging water system that includes 3,300 miles of pipeline, 49 pumping stations, nine reservoirs and three treatment plants.
“We recognize this is a significant increase,” said Adam Jones, the city’s deputy director of public services. “It really pays to make sure our system is running efficiently and effectively and that costs are allocated to the right customers.”
Jones noted that the comparison to rates in other cities doesn’t take into account that many of those cities will raise rates before San Diego’s second rate increase takes effect in January 2025.
In addition to infrastructure repairs and improvements, money from the higher rate will pay for pay raises for 950 city water workers and improvements to the city’s much-criticized customer service system.
The city’s budget committee kicked off the proposed rate hike on Wednesday.
Councilor Chris Cate said the rate increase made sense with the cost of imported water rising by about 3 per cent a year. Imported water makes up 85-90 percent of the city’s water supply.
Another factor is conservation, which reduces revenue for city ratepayers but doesn’t reduce the costs of maintaining and replacing aging infrastructure or paying off bonds that helped finance projects built years ago.
Despite population growth, water use has fallen by around 15 percent since 2015 and is projected to be 18 percent below that benchmark by 2025.
Cate praised city officials for disclosing the proposed rate hikes, nearly a year before the first 9.3 percent increase takes effect in November 2023. A second increase of 7.6 percent would take effect in January 2025.
When the increases are compounded, the total increase in rates would be 17.6 percent above current levels.
Board President Sean Elo-Rivera said he empathizes with water customers struggling to make ends meet. But he said it’s important to look at the big picture.
“I will reiterate the importance of investing in the systems we want,” he said. “Sustainable, reliable and healthy water systems do not fall from the sky, unfortunately.”
Elo-Rivera stressed that operating the city’s water system too modestly can lead to broken pipes, broken water pipes and other problems.
“If we don’t invest in these things, we’re going to pay exponentially,” he said.
Councilor Vivian Moreno said it is important to note that the city does not make a profit on the water system.
City officials said they decided to use the $78 million to soften and delay rate increases.
The money includes $35 million from the sale of land in Mission Valley that held water districts. San Diego State paid the city $81 million for the Mission Valley land, but the city’s general fund held some of the land.
The city’s successful lawsuit against the Water District over rates won $4 million in fiscal 2022 and $15 million in 2021.
And the city’s decision to reduce the amount of imported water it holds in reserve saved $25 million.
The new rate analysis by Raftelis, the city’s first since 2015, was delayed in part by lawsuits challenging tiers in the city’s rate structure that reward customers who use less water and penalize customers who use more.
A judge ruled last year that the city’s tiered rates are illegal under Proposition 218, which states that utility rates set by local governments cannot exceed the cost of providing the service.
City officials say they still believe the tiered rates are legal, and think it’s fair to charge customers who use more water higher rates because the demands those customers place on the system create additional costs.
They say that the hearing on the appeal of the municipality in the case is expected in the winter and that the decision of the court of appeal is expected by the end of next year.
The appeals court’s decision could have a significant impact across the state, as many other California water agencies use tiered rates.
The proposed rate hikes would reduce the number of levels the city uses from four to three.
The city’s water system has $381.7 million in reserves. Annual operating costs are about $602 million.
How much is a typical water bill in San Diego?
For those in the city of San Diego, the average bill will be about $90 a month in 2022, compared to the $77 a month customers paid in 2017, a nearly 17 percent increase in out-of-pocket costs in just five years, according to the report. Otay Water District to a water bill survey.
What is the average cost of utilities in San Diego? On average, electric customers in San Diego County spend about $297 a month on electricity. That adds up to $3,564 a year. That’s 76% higher than the national average electric bill of $2,029.
How much is water bill monthly in San Diego?
The monthly costs for a typical single family customer are: Basic fee: $27.09. 0 – 4 HCFs used are billed at $5,415 per HCF. 5 – 12 HCFs used are billed at $6,065 per HCF.
How often do you pay water bill in San Diego?
The City of San Diego Public Utilities Department’s bill payment schedule conforms to industry standards. The due date of the invoice will be 15 days after sending the invoice. The closing date is between 45 and 51 days after the invoice is sent.
Why are water bills so high in San Diego?
The county typically purchases most of its imported water from the Metropolitan Water District of Southern California and the Imperial Irrigation District. Rising imported water costs tend to have a big impact on San Diego, as imported water makes up 85 to 90 percent of the city’s water supply.
Why are water bills so high in San Diego?
The county typically purchases most of its imported water from the Metropolitan Water District of Southern California and the Imperial Irrigation District. Rising imported water costs tend to have a big impact on San Diego, as imported water makes up 85 to 90 percent of the city’s water supply.
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How much is water bill monthly in San Diego?
The monthly costs for a typical single family customer are: Basic fee: $27.09. 0 – 4 HCFs used are billed at $5,415 per HCF. 5 – 12 HCFs used are billed at $6,065 per HCF.
