The San Diego Water Authority approved a 3% wholesale water rate increase for 2027 on Thursday during a board meeting largely devoid of members of the public.
The utility said an increase is necessary to meet revenue requirements, operational needs and fiscal goals.
Leaders with the authority said the rate hike is nothing to celebrate, but the 3% overall increase in the coming year is below the national rate of inflation and down from earlier projections close to 6%.
They said the lower increase is due to the impact of two water transfer agreements this spring.
“We've been able to secure agreements with jurisdictions outside of San Diego County. New partnerships for us to be able to move water to those jurisdictions at a cost. That has brought in new revenue resources that we have been able to bring down water rates substantially,” said Nick Serrano, Water Authority board chair.
Santee resident Suzanne Till was the sole person who spoke at the board meeting ahead of the formal vote.
“Only in San Diego County is a 3% rate increase considered great relief,” she said during public comment.
Not everyone will feel the rate change evenly.
Homes and businesses feel the cost of water at the tap differently based on water usage and how local retail water agencies handle costs.
“Each individual agency will now take what this board has adopted, go back, run the numbers and see how that applies to their constituents,” Serrano said.
The County Water Authority said similar 3% yearly water rate increases are expected through 2032.
“This is the lowest rate adjustment here in recent memory at the San Diego County Water Authority,” Serrano said. “A lot of this has to do with costs outside of the authority’s control. Much like home and business budgets across San Diego County, everything is increasing, the costs of energy, construction.”
