San Diego City Council punts on water rate vote
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It's still unclear how much bills might go up for the 1.4 million San Diego residents who rely on city-provided water after the City Council voted 8-1 Tuesday to delay a vote on water and sewer rate increases until late October.
Why it matters: San Diego's already high cost of living is a major concern for locals facing multiple recent fee increases — including for trash service and parking — as the city works to close its budget deficit.
Driving the news: The City Council voted to push the vote to Oct. 28 so that city staff can consider adjustments to the proposal, including a shorter term for the increases.
- The current proposal would raise water rates by 63% and sewer rates by 31% over the next four years.
- That would raise the average single-family household water bill by $18 per month starting in January, according to city estimates.
By the numbers: The current monthly water service charge is $46.63 for a 1-inch meter.
- As proposed, that would rise to $56.83 in January, and incrementally each year, hitting $80.56 in January 2029.
Inside the room: Dozens of local residents expressed concerns about affordability at the meeting, particularly for those on fixed incomes, noting these increases follow previous rate hikes that took effect this year.
- One caller whose name wasn't clear in a livestream of Tuesday's meeting warned that recent compounding cost increases would "push everybody out of San Diego except for those who earn $200,000 a year or more." "People can't take this any more," he said.
- Multiple council members said they would vote no on the rate hikes.
- "We need to respond to the affordability crisis in our community, we have to pay for the water system that we need and that's going to require some creativity," councilmember Sean Elo-Rivera said.
Zoom in: The proposed rate increases are driven by the city paying more to buy water from the San Diego County Water Authority, according to city analysts.
- The money is also needed to cover rising costs for workers, water treatment and distribution and construction projects.
- San Diego's Public Utilities Department has taken several measures to save millions and mitigate these hikes, including using more water stored in reservoirs and delaying projects, but there are no more financial levers to pull, city staff said at the meeting.
Between the lines: Ahead of the meeting, the city's independent budget analyst warned that not raising rates would lead to significant budget cuts in the Public Utilities Department.
- That could include staff layoffs, service disruptions, higher emergency repair costs, and the inability to pay back loans, like for the Pure Water recycling project.
- The multi-billion project aims to reduce the city's reliance on the water authority for its water supply.