San Diego Water District board adopts ~10% increase to water capacity charges

The San Diego Water District Board voted unanimously to adopt Resolution No. 2025-12, approving adjustments to the district’s water capacity charges that staff said amount to about a 10.4% increase overall.

Principal Engineer Alex presented the proposal at the public hearing, telling the board the charges are one‑time fees levied “on development projects when applying for new or expanded service.” He described the domestic charge methodology as a system buy‑in (the value of existing assets divided by build‑out meter units) and said fire connections were calculated using an incremental cost approach tied to capital improvements recommended in the system master plan.

Alex showed a comparison to nearby agencies and cited prior adjustments (noting earlier changes in 1991 and 2007 and a prior adjustment that carried through 10/01/2023). He said the effective date for the new charges is March 1, 2026, and recommended future, index‑based increases on July 1, 2027 and July 1, 2028 tied to the Los Angeles Construction Cost Index. Alex also noted the district followed public‑notice requirements including Coast News publications and posting materials at City of Encinitas City Hall.

Board members asked clarifying questions about how frequent updates affect relative charges compared with other agencies. There were no public speakers on the item. After discussion, a board member moved to adopt Resolution No. 2025-12 and the motion carried unanimously.

The resolution takes effect March 1, 2026; staff said it will return to the board with any further implementation steps or clarifications as needed.