San Diego Faces Steep Water Rate Increases as County Authority Costs Soar

Public hearing scheduled for September 30 as residents brace for 62% hike over four years

SAN DIEGO – San Diego water customers could see their monthly bills increase by more than 60% over the next four years under a proposal that has prompted fierce debate among city council members and growing opposition from residents already struggling with the city's high cost of living.

The San Diego City Council voted 6-3 in August to schedule a public hearing for Tuesday, September 30, 2025, at 2 p.m. in the City Council chambers to consider the dramatic rate increases. If approved, the combined water and sewer bill for a typical single-family home could reach approximately $180 per month by 2029.

The proposed increases would begin January 1, 2026, and continue through 2029, with monthly rate hikes ranging from $13.27 to $16.01 for water authority pass-through costs alone, plus additional increases for city water and wastewater services. The cumulative effect would result in a 62% increase for water rates and a 31% increase for sewer rates over the four-year period.

Mounting Frustration with Water Authority

Much of the controversy stems from escalating costs imposed by the San Diego County Water Authority (SDCWA), which supplies 70-90% of the city's water. City council members delivered an unprecedented public rebuke of the regional water seller during a January meeting, with some suggesting the city refuse to pay its water bills.

"I don't like this any more than anybody else does," said City Council President Joe LaCava before casting his vote to schedule the hearing.

The Water Authority initially proposed a 24.5% rate increase for 2025, which was negotiated down to 14% after pressure from San Diego representatives. Mayor Todd Gloria praised the city's efforts to reduce the increase, stating that the original proposal was "unacceptable."

"Today, thanks to the effective leadership of the City of San Diego's representatives on the Water Authority... we were able to bring it down to 14%. This means less money coming out of the pockets of ratepayers," Gloria said following the Water Authority's vote in July 2024.

Rising Opposition from Residents

The proposed rate hikes have sparked significant concern among San Diego residents, many of whom are already struggling with housing costs and inflation. During public comments at recent committee meetings, residents have voiced frustration with the timing and magnitude of the increases.

"It's already so expensive here, so adding on to that, I don't think is really good," one resident told CBS8.

Another ratepayer, speaking at an Environmental Committee meeting, commented, "Something is wrong here, and the public needs to know what it is!"

Council Member Vivian Moreno, who voted against scheduling the hearing, expressed particular concern about the impact on San Diego families. "As prices increase, many San Diegans will be forced to choose between paying for water and paying for food," Moreno said.

Comparison to Other Western Cities

Despite the significant increases, San Diego's water rates would remain competitive with other major Western cities. According to a Circle of Blue survey of 30 metropolitan regions, water costs vary dramatically across the West:

• Phoenix: A family of four using 100 gallons per person daily pays an average of $34.29 per month
• Denver: Single-family customers with typical usage pay an average increase of $2-3 per month as of 2025
• Los Angeles: Uses a four-tier rate structure with costs varying significantly by usage and location
• Seattle: Monthly sewer costs average $135.57, among the highest in the nation

San Diego Public Utilities Department officials maintain that even with the proposed increases, the city's rates would "remain below the average within the region," though specific regional comparisons were not provided.

Infrastructure and Import Costs Drive Increases

The rate increases are attributed to several factors beyond the Water Authority's rising costs. The city faces mounting expenses for:

• Aging Infrastructure: Replacing thousands of miles of aging water and sewer pipes
• Pure Water Project: A multi-billion-dollar water recycling program expected to provide nearly half of San Diego's water supply by 2035
• Operations and Maintenance: Rising costs for chemicals, energy, and construction projects
• Debt Service: Financing for infrastructure improvements spread over the useful life of the assets

The city imports 80-90% of its water supply, primarily from the State Water Project in Northern California and the Colorado River, both delivered through the San Diego County Water Authority. This heavy reliance on imported water makes San Diego particularly vulnerable to rate increases from regional suppliers.

Limited Assistance Available

Unlike electricity and gas utilities, there is currently no comprehensive bill assistance program for water customers. However, some relief may be available:

• The Low Income Household Water Assistance Program can help with past-due bills
• U.S. Senator Alex Padilla has proposed federal legislation to create assistance for low-income water customers
• The city offers rebates for water-saving devices and appliances

Recent Rate History

The current proposal comes on top of significant recent increases. Since 2023, San Diego water customers have experienced:

• 5% increase effective December 1, 2023
• 5.2% increase effective July 1, 2024
• 8.7% increase effective January 1, 2025
• 5.5% pass-through increase approved for May 1, 2025

These increases represent the first comprehensive rate adjustments since 2015, following nearly a decade of relatively stable rates.

Council Division and Next Steps

The September 30 public hearing does not guarantee approval of the rate increases. Several council members, including Sean Elo-Rivera, emphasized that scheduling the hearing does not indicate support for the proposal.

"I want to be 100% sure that the Water Authority has done everything possible to pass through the lowest possible rate to the city of San Diego," Elo-Rivera said. "This isn't a commitment to vote yes when this gets to the full council because I need to be convinced ratepayers are getting the lowest rate and I'm not convinced of that yet."

The Public Utilities Department plans to host virtual informational meetings in August to explain the rate structure and answer public questions before the formal hearing.

San Diego residents can attend the September 30 hearing in person at the City Council chambers, 202 C Street, 12th floor, or submit written opposition by mail. The hearing will provide the final opportunity for public input before the council votes on whether to implement the four-year rate schedule.

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SIDEBAR: A Citizen Objects

Retired Homeowner Prepares Opposition Statement for September 30 Hearing

A retired san diego resident has prepared the following statement to present at Tuesday's public hearing on the proposed water rate increases:

"Honorable Council Members,

 I've been a San Diego homeowner for 32 years. I'm here today to voice my strong opposition to these devastating water rate increases.

As a retiree on a fixed income, I'm already struggling with rising costs everywhere - groceries up 25%, property taxes, city fees, and homeowners insurance climbing every year, and my Medicare premiums increasing faster than my Social Security adjustments. Now you're asking me to absorb a 62% water bill increase over four years? This is simply unsustainable.

I understand infrastructure needs maintenance, but where is the accountability? Why haven't we seen a detailed breakdown of exactly where every dollar of this increase will go? Why are we continuously bailing out the County Water Authority's poor planning and management decisions?

The math is staggering. If my current combined water and sewer bill is $95 per month, you're asking me to pay $180 by 2029. That's an additional $85 per month - over $1,000 more per year. On my teacher's pension, that means choosing between medications, home repairs I can no longer defer, or basic utilities.

I've already installed low-flow fixtures, drought-resistant landscaping, and reduced my usage by 30% since 2020. Yet my bills keep rising despite using less water. How is this fair or logical? We seem to be in an upside down world where the less we use, he more we pay for it.

Many of my neighbors are considering selling their homes - not because they want to leave San Diego, but because they simply cannot afford to stay. Is this the San Diego we want? A city only for the wealthy? Who will do the work to keep the city running? A lifetime of labor in this city will earn you a ticket out of town, because you won't be able to afford to stay.

I urge you to reject this proposal and demand that the Water Authority justify every penny before imposing this burden on residents who have already sacrificed so much.

Thank you."

This represents a growing number of fixed-income residents who feel trapped between rising utility costs and limited financial resources. There concerns echo those of many speakers expected at Tuesday's hearing.

Based on my research, there are several applicable laws under which San Diego's proposed water rate increases may be legally challenged. Let me provide a comprehensive analysis:

Laws for Challenging San Diego Water Rate Increases

There are several significant legal grounds under which the proposed rate increases can be challenged:

1. California Proposition 218 (Article XIII D of the California Constitution)

This is the primary legal framework governing water rate increases in California. Proposition 218, adopted in 1996, amended the California Constitution to create limits around local government revenue powers, including voter approval requirements for taxes, assessments and fees.

Key requirements for water agencies:

• Must mail information regarding proposed fees to every property owner at least 45 days before the hearing
• Must hold a public hearing and consider protests from property owners
• Must reject the proposed fee if written protests are presented by a majority of affected property owners
• Proportionality Requirement: The amount of a fee or charge imposed upon any parcel shall not exceed the proportional cost of the service attributable to the parcel

2. Legal Challenges Based on Proportionality

Recent court cases show this is an active area of litigation:

• The California Court of Appeal recently invalidated a water rate increase because the water district failed to produce evidence that customers were solely responsible for paying increased costs
• In KCSFV I, LLC v. Florin County Water District, the court ruled that Proposition 218 required agencies to provide ratepayers with notice of the actual amount of rate increases to allow meaningful opportunity to oppose them
• In Coziahr v. Otay Water District, the San Diego Court of Appeal struck down tiered water rates, suggesting increased scrutiny on evidence supporting tiered water rates

3. Burden of Proof Requirements

Proposition 218 shifted the burden of proof from customers to the water agency. Previously, customers had to prove a fee was illegal; now agencies must prove their rates comply with constitutional requirements.

4. Specific Grounds for Challenge

A. Inadequate Cost Justification:

• Agencies must prove rates don't exceed the cost of providing service
• Courts require agencies to calculate the incremental cost of providing service under progressively increased water rate tiers

B. Cross-Subsidization Violations:

• Proposition 218 prohibits cross-subsidies where some ratepayers pay more than the cost of providing water service to subsidize others

C. Procedural Violations:

• Inadequate notice to property owners
• Failure to provide specific rate increase amounts rather than "hypothetical examples"

D. Disproportionate Pass-Through Costs:

• Challenges to the County Water Authority's rate increases being passed through without adequate justification

5. Recent Legislative Changes (2024)

California recently passed new laws affecting Proposition 218 challenges:

• AB 2257: Requires parties challenging fees to submit written objections to the agency before filing lawsuits
• AB 1827: Codifies authority for agencies to allocate incremental costs associated with high water use to tiered rates, provided such structures are supported by evidence
• SB 1072: Addresses how refunds are handled when rates are found to violate Proposition 218

6. Potential Remedies

If successful, challenges can result in:

• Rate Invalidation: Courts can strike down the entire rate structure
• Refunds: California courts have found that litigants can obtain refunds for amounts paid in violation of Proposition 218
• Injunctive Relief: Preventing implementation of the increases

7. Strategic Considerations for Objectors

Immediate Actions:

• Submit written protests by the majority protest deadline
• Attend the September 30 hearing to voice objections
• Document specific harms from the rate increases

Legal Challenge Preparation:

• Request detailed cost-of-service studies
• Challenge the proportionality of County Water Authority pass-through costs
• Question whether the city has adequately justified why non-CWA rate components are necessary
• Examine whether proper Proposition 218 notice procedures were followed

Key Question for San Diego specifically: Given that 11% of the proposed 13.7% increase comes from County Water Authority costs, residents could potentially challenge whether the city has adequately proven that these pass-through costs are proportional and necessary, especially given the ongoing disputes between the city and the Water Authority.

The legal landscape is particularly favorable for challenges right now, as courts are applying increased scrutiny to water rate justifications following recent appellate decisions.

 

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Sources

1. City of San Diego Public Utilities Department. "Rate Adjustments." sandiego.gov. Accessed August 10, 2025. https://www.sandiego.gov/public-utilities/customer-support/water-and-sewer-rates-increases
2. Moran, Greg. "San Diego Council Bashes County Water Authority Over Costs." Voice of San Diego, January 17, 2025. https://voiceofsandiego.org/2025/01/17/san-diego-council-bashes-county-water-authority-over-costs/
3. San Diego County Water Authority. "New Revenues, Budget Cuts Trim Wholesale Rate Increase for 2025." July 25, 2024. https://www.sdcwa.org/revenues-and-cuts-trim-rate-increase-for-2025/
4. Team 8. "San Diego City Council votes for public hearing on proposed water rate hikes." CBS8, August 2025. https://www.cbs8.com/article/news/local/san-diego-city-council-vote-to-set-public-hearing-on-proposed-water-rate-hikes/509-3c46ec0f-d192-4ef1-835c-714b98c55563
5. City of San Diego. "City of San Diego Lowers Proposed Water Rate Increase at County Water Authority." July 25, 2024. https://www.sandiego.gov/mayor/city-lowers-proposed-water-rate-increase
6. Team 8. "San Diego water bills could soar over 60% by 2029 under new proposal." CBS8, August 2025. https://www.cbs8.com/article/news/local/san-diego-water-customers-62-percent-rate-hike/509-1cffbae2-ea91-421b-8fda-aa83e0e5bd09
7. Penaloza, Maya. "San Diego City Council approves first significant water rate increase since 2015." KPBS Public Media, September 20, 2023. https://www.kpbs.org/news/local/2023/09/20/san-diego-city-council-approves-first-significant-water-rate-increase-since-2015
8. Walton, Brett. "The Price of Water: A Comparison of Water Rates, Usage in 30 U.S. Cities." Circle of Blue, May 18, 2017. https://www.circleofblue.org/2010/world/the-price-of-water-a-comparison-of-water-rates-usage-in-30-u-s-cities/
9. Denver Water. "2025 Residential Water Rates." https://www.denverwater.org/residential/billing-and-rates/2025-rates
10. Los Angeles Department of Water and Power. "Residential Water Rates." https://www.ladwp.com/account/understanding-your-rates/residential-water-rates
11. LawnStarter. "How Much is the Average Water Bill in 2025?" November 28, 2024. https://www.lawnstarter.com/blog/cost/average-water-bill-price/\
12. Preparing for Water and Wastewater Rate Adjustments - YouTube