Water, sewer rate hikes dialed back for Oceanside

Water and sewer rate increases proposed in October to take effect in 2026 for Oceanside residents and businesses were cut in half Wednesday by the Oceanside City Council, but only for a year.

Water department employees initially asked for increases of 6% for water and 4% for sewer in 2026 and again in 2027, but the council pushed for belt-tightening and postponed a decision after complaints from residents at the Oct. 1 meeting.

The revised proposal, approved 3-2 Wednesday with Mayor Esther Sanchez and Councilmember Rick Robinson opposed, calls for a 3% hike for water and 2% for sewer in 2026 and then the 6% and 4% increases in 2027.

“Cutting it to the bone is what we are doing,” Sanchez said. “The last time we did that we ended up in a recession and had to cut a lot of services. …  it will cost us more in the long run.”

The typical residential customer can expect to see an increase of $1.48 per month beginning in January, said Fred Mayo, the city’s water utilities director.

Water and sewer rates are based on studies that show the cost of providing those services, which include the maintenance, expansion and safety of a complex and aging system. As new customers are added, they pay fees to cover their share of the costs. The fees are the only source of revenue for water and sewer services.

Among the opponents was Robert Wiltfang, an Oceanside resident for 22 years.

“Taxes have gone up; our expenses have gone up,” Wiltfang said at the October meeting. “We need to do a better job of trying to figure out how to manage the money … this water department needs to learn how to cut costs.”

Other speakers pointed out that the increases exceed the cost-of-living hike coming for Social Security recipients, and that the higher rates could be a hardship for businesses and anyone on a fixed income.

Assistant City Manager Michael Gossman said he understands the concerns, but, “the utility is impacted by rising costs as well.”

Electricity, fuel, chemicals and the labor needed to run the system all cost more, Gossman said, and “these are the things that drive our rates.”

At least half of the water rate increase that is being passed along to customers is needed to cover increased costs of water purchased from the city’s supplier, the San Diego County Water Authority, which in turn buys water from the Metropolitan Water District.

The Oceanside district has several large maintenance projects planned or soon to get underway, Gossman said.

“Reducing the rate increases below the initially recommended levels will likely impact service delivery to the city’s ratepayers,” states a report presented to the council.

“Staff believes that the initial rate increases presented on Oct. 1 remain the most prudent option … (to) ensure that capital project delivery remains fully funded and without disruption to current and planned staffing levels,” the report states.

The reduced revenue in 2026 could force the water department to borrow money for essential infrastructure projects, it states.

“To help mitigate these pressures, staff would implement several cost-saving and revenue-enhancing measures, including the proposed introduction of a credit card convenience fee for utility bill payments (subject to future City Council review and approval), the elimination of after-hours non-emergency water service responses, and strategic budget savings resulting from accrued salary vacancies,” the report states.

Oceanside’s water and sewer rates will remain below those of most other cities in San Diego County, officials said.

Carlsbad’s residential water and sewer rates increased 20% on July 1 and will go up a total of 49% over the next three years under a plan approved in April by the Carlsbad City Council.

The San Diego City Council voted in October to raise water rates 31% over the next two years and increase sewer rates 31% over the next four years.