Elo-Rivera to San Diego Water Authority: Lower rates, or else
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San Diego could leave the San Diego Water Authority — or pursue dissolving the agency — if it doesn't take steps to lower water rates, according to Councilmember Sean Elo-Rivera.
Why it matters: The typical San Diego household will face a monthly water bill of $90.67 once rate increases take effect on May 1.
- That's roughly double the $45.09 per month paid by an average American household, per a 2022 survey by the American Water Works Association.
Driving the news: Elo-Rivera wrote a letter this week to SDCWA general manager Dan Denham telling him to accept proposals to lower rates outlined in a memo by Matthew Vespi, the city's finance director and a SDCWA board member, or face consequences.
The intrigue: "If the SDCWA cannot provide meaningful and immediate relief, then every structural and institutional option must be on the table," he wrote.
Zoom in: In an interview with Axios, Elo-Rivera specified that those options included everything up to dissolving SDCWA entirely, or the city divorcing the agency.
- "When I say everything, I mean everything," he said.
What they're saying: "It is no longer acceptable for the residents and businesses of the City to carry the burden of ever-increasing water costs imposed by the SDCWA," Elo-Rivera wrote.
- He added that he and other council members have spent years telling SDCWA to relieve pressure on ratepayers by curtailing its operating expenses.
- "These requests have been largely ignored, and I am increasingly impatient with this inaction," he wrote.
The other side: In a statement, Denham said he looked forward to updating Elo-Rivera on SDCWA's budget, rates and attempts to diversify its water supply.
- "Despite the urgency, moving water across state or county lines takes time due to contractual, legal and political barriers," Denham said.
- "With the support of the Water Authority board and Chair Nick Serrano, we are breaking down these barriers, and I am optimistic that we will bring further rate relig to the region while continuing to provide reliable water deliveries even in times of drought," he added.
Between the lines: The City Council in March approved rate hikes that will lead to monthly payments above $145 in 2029.
- Elo-Rivera voted for the increase, saying at the time there was no choice due to contracts SDCWA signed that secured more water than the region needs.
- "If we have water that is not being used by our member agencies, then we should sell it and use that revenue to ease the burden for working San Diegans," he wrote in his letter.
- That was among Vespi's suggestions, which also included scaling back demand expectations that haven't materialized and better managing costs on capital expenditures.