Budget analysts in San Diego have called for significant reforms at the financially struggling County Water Authority. Their recommendations come as the city faces cumulative water rate hikes of 90% over six years, and projections indicate that the authority could increase rates by between 100% and 150% by 2035.
The analysts emphasize that these steep increases may be mitigated if the authority can limit large capital projects, reduce operating expenses, and adjust its water supply commitments. The main issue is that the authority is contractually obligated to purchase more water than its member agencies typically need, necessitating higher rates to cover fixed costs. These rate hikes are then passed on to local water agencies, including San Diego.
The authority must acquire 325,700 acre-feet of water annually, primarily sourced from the Colorado River and the Carlsbad Desalination Plant. Last year, local water sales fell to 323,781 acre-feet, highlighting a trend of diminishing demand.
Despite ongoing public criticism from the mayor and City Council regarding the authority’s management, the latest recommendations from the Independent Budget Analyst (IBA) suggest a more proactive approach. The city holds 10 of the 34 seats on the water authority’s board, positioning it well to influence management decisions effectively.
Recommendations for Sustainable Change
The IBA’s Jordan More provided a comprehensive set of recommendations aimed at guiding the city’s representatives, referred to as the “city 10,” during the water authority’s legislative calendar, set to launch on March 2026. One crucial suggestion is for the city 10 to advocate for the creation of a new business plan within a year. This plan should critically assess the operations of the County Water Authority and propose strategies to achieve sustainability in light of declining regional demand.
More noted that the new business plan should evaluate potential initiatives, including a proposed new operations site, the future of the Twin Oaks Treatment Plant, and any upcoming reservoir projects. He pointed out that San Diego water officials have already postponed significant infrastructure projects for three years as a cost-saving measure. He believes it is reasonable to expect the water authority to adopt similar strategies.
More also highlighted that the Metropolitan Water District, which faces similar challenges, has begun updating its business plan.
Another key recommendation is for the city 10 to insist that the water authority pursue deals to sell excess water to agencies outside the region, likely to be out-of-state, within a year. More stressed the importance of timing for these agreements, noting that water recycling projects in Oceanside, East County, and San Diego are projected to start producing water within the next 18 months.
Need for Immediate Action
While acknowledging the authority’s recent budget cuts and its legal settlement with the Metropolitan Water District that allows for out-of-state sales, More emphasized that more substantial changes are essential. He stated, “Although progress has begun, more rapid and holistic changes are needed quickly to have a lasting and dramatic impact on rates.”
More expressed optimism that the water authority’s long-range financial plan, which predicts rate increases as high as 150% by 2035, does not factor in any water sales to outside agencies and lacks significant operational changes.
The city 10 includes influential figures such as Nick Serrano, City Councilmember Stephen Whitburn, Jimmy Ayala, Jim Madaffer, Venus Molina, Jerry Butkiewicz, Ismahan Abdullahi, Tim Douglass, Lois Fong-Sakai, and Val Macedo. Their collective efforts in pushing for these recommendations could play a crucial role in reshaping the water authority’s future and mitigating rate increases for residents of San Diego.
