Council receives wastewater CIP update; upholds previously approved sewer service rates

City staff on May 21 provided the council with an update on the fiscal year 2025 wastewater capital improvement program and recommended the council receive and file the report and uphold previously approved fiscal year 2026 sewer service rates for the Cardiff and Encinitas Sanitary Districts.

Senior engineer Dan Nutter said the divisions completed a cost‑of‑service study in early 2024 and that FY‑26 rates were adopted last year after assuming a 100 percent execution rate for the Wastewater Division’s CIP. Staff reported FY‑25 appropriations of about $1.73 million across city sewer funds and highlighted several projects: B Street sewer improvements (completed), the annual sewer rehabilitation project (in construction, nearing completion), Cottonwood Creek sewer improvements (finalizing permitting), manhole rehabilitation and condition assessments, and the FY‑26 annual rehab design work.

Nutter said the division had encumbered much of the budget and projected an execution (expenditure) rate above 100 percent for the fiscal year because projects started earlier and some carryover funds were being spent; staff presented a projected execution rate of about 128 percent. Council voted unanimously to receive and file the update and to uphold the previously adopted FY‑26 sewer service rates.

Why it matters: The report provides the public and council with the status of sewer system investments and confirms the city's rate path for wastewater services. Staff noted that encumbrances and carryover from prior years account for projected expenditures that temporarily exceed the adopted appropriation for the fiscal year.

Next steps: Staff will continue implementing the listed sewer projects and return with regular CIP updates.