Budget analysts tells San Diego how to help shrink county water rate hikes

Budget analysts for San Diego say city officials should demand big changes at the cash-strapped County Water Authority, including a thorough re-thinking of its entire operations and urgent action on out-of-state water sales.

The recommendations come with the city facing cumulative water rate hikes of 90% over six years, and the water authority predicting it will need to increase the rates it charges the city and other local agencies 100% to 150% by 2035.

Those hefty rate hikes could possibly shrink substantially if the water authority limits large capital projects, reduces operating expenses and finds a way to “right size” its water supply, according to the city’s independent budget analyst.

The fundamental problem facing the water authority is that it’s contractually obligated to buy more water than its member agencies typically need, forcing it to raise rates to cover its built-in costs.

Those increases essentially get passed on to local water agencies, including the city of San Diego, which must increase their rates accordingly.

The water authority is contractually obligated to buy 325,700 acre feet of water per year, primarily from t...