San Clemente adopts water rate increases after public hearing; staff cites imported-water and aging infrastructure costs

After a public hearing on Feb. 17, the San Clemente City Council adopted proposed water fees and rates with annual adjustments through Jan. 1, 2030, and introduced an ordinance amending municipal code language for future water-rate adoption.

Consultant Sanjay Gar presented the rate study and financial plan, noting that imported water costs had risen substantially (from $2.94 in 2022 to $4.27 in 2026) and that the city must meet coverage-ratio requirements to avoid technical default. "What we're recommending is the first year, a 9.5% increase, then followed by 3.5," Gar said, adding that a pass-through provision for imported water is included because of wholesale-market uncertainty.

Nut graf: Staff argued the increase preserves reserve policy and enables funding of critical water infrastructure; the presentation highlighted example bill impacts for typical meters, including an approximate $6.69-per-month increase for low use and $7.69 for average use.

Public reaction and procedural details: Staff recorded receiving two written protests among 26,397 parcels. No speakers registered for public comment at the hearing. Council members questioned the balance between encouraging conservation and ensuring revenue stability; staff responded that much cost is fixed infrastructure expense and that reserves and capital spending must be maintained.

The council voted 5–0 to adopt the resolution putting the proposed rates into effect and to proceed with the ordinance introduction for code changes.

Ending: Staff will implement the new rate schedule and monitor wholesale import cost pass-throughs as permitted under the adopted policy.