Water rates for San Diegans will rise 14.7% next year and 14.5% the following year after the vote by a divided San Diego City Council Tuesday.
The rate proposal before the council was to increase water rates by 63% through 2029 and wastewater rates by 31% in the same period. Councilman Stephen Whitburn suggested the scaled back two-year plan, which the council approved on a 5-4 vote.
In an exchange with Lisa Celaya, executive assistant director for the city, and Jordan More of the Office of the Independent Budget Analyst, Whitburn repeatedly tried to figure out the lowest rate increase to keep water flowing.
“I want to see the lowest possible number that protects our workers and protect our residents,” he said.
Aware of increased costs from the San Diego County Water Authority, Whitburn asked the consequences of not increasing the rates to some degree.
Celaya and More agreed. If the council did not approve a rate hike, or passed one below their estimate of what was needed, the city would face an “immediate downward financial spiral,” Celaya said.
“Approving rates lower than those proposed would almost entirely eliminate any margin of error,” More said. “All levers are being pulled just to get through these two years.”
A proposed 5% or 10% hike instead of the staff proposed rate or the one agreed upon Tuesday would trigger a default from bonding agencies, deplete much of the city’s available funds, crater its credit rating and would necessitate the layoffs of around 500 people or a quarter of the Public Utility Department’s staff, Celaya said.
“Five percent has extreme consequences to us,” she said. “Every percentage point matters.”
“That’s quite a choice,” Whitburn answered tersely.
Despite increasing water costs. San Diego’s rates remain below the county average. The council had been set to consider the proposed new rates last month but postponed the discussion in hopes of friendlier numbers rising to the surface. Dozens of city residents balked at the rate hike – as did council members.
For a 1-inch meter, the current monthly water service charge is $46.63. That would have
increased to $56.83 in January 2026, $65.08 in January 2027 under the rejected proposal.
Under Whitburn’s compromise, in the first year, monthly rates for a 1-inch meter will increase by $6.85 and the following year by $7.75.
Monthly rates rise based on meter sizes, from the smallest (5/8 and 3/4 of an inch) to 16
inches. The new percentages will be applied to current rates, which range from $28.84 a month to almost $6,940.
The council members who voted to approve Whitburn’s proposal applauded the reduced two-year plan. Councilwoman Jennifer Campbell said an ongoing deep dive into the SDCWA’s budget could find some significant cuts over the duration of the two-year rate hike which may bring down costs in the future.
Councilman Raul Campillo noticed around 90% of the increased costs came directly from the SDCWA and agreed there must be cost-cutting from that agency, which represents most of the county’s water districts.
Councilwoman Marni von Wilpert, who voted no on Whitburn’s proposal, wanted to call the water authority’s bluff.
“They aren’t going to turn off the tap,” she said. “I’m willing to take this to litigation.”
Council members Kent Lee, Vivian Moreno, Henry Foster III joined von Wolpert in casting no votes.
Even Whitburn, while working to mitigate the costs, said the city would send a message to the SDCWA.
“There is a cap on what the city is willing to pay for water,” he said.
The justification for the increase was largely based on increasing water costs.
“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,” according to city documents. “Purchasing water from the SDCWA is the second largest individual expense for the entire city of San Diego.”
Other reasons for the rate hike include increasing costs of maintenance, increasing energy rates, Pure Water Phase 1 operations and more.
A report released by the city’s Independent Budget Analyst found that the costs were a bitter pill to swallow, but necessary medicine all the same.
Studies prepared by the Public Utilities Department “demonstrate the need for increased revenues for both systems in order to maintain operations,” the IBA report read. “In the current environment of declining water sales and wastewater flows which generate revenue for the systems, this inevitably means increasing rates.
Updated 7:15 p.m. Oct. 28, 2025
