CARLSBAD — Residents and businesses in Carlsbad can expect their drinking water and wastewater bills to rise annually over the next three years.
The City Council on April 22 approved rate increases for both drinking water and wastewater services.
Beginning July 1, rates will increase by 20%, or about $25.30 for the average customer. Additional increases of 14% and 9% will take effect on Jan. 1, 2026, and Jan. 1, 2027, respectively.
By the end of the third year, bills will have risen by 45%. According to city staff, the average Carlsbad customer who currently pays about $125.65 for water and wastewater services would see their bill increase to approximately $187.40 by 2027.
The move follows the San Diego County Water Authority’s decision last summer to boost wholesale rates by 14%. Approximately 65% of the cost of Carlsbad’s water bills is tied to county water purchases, which fund sources such as the Colorado River supply, desalination, debt service payments, capital improvements, operations, treatment and purchases from the Metropolitan Water District.
The remaining 35% covers local costs for providing water services, including maintenance, water quality testing and infrastructure investments.
According to city staff, water from the desalination plant is the city’s most expensive source of water.
“It is actually the most expensive water that we have,” said Shoshana Aguilar, senior management analyst. “It takes a lot of electricity to get salt out of water. It’s one of the biggest electric users in the county, and when rates go up, those costs flow through to us.”
Although the desalination plant is located in Carlsbad, it is privately owned. The county purchases a portion of its water supply from the plant and then distributes it to Carlsbad and other cities.
Despite the rate increases, staff emphasized that Carlsbad customers still pay the lowest rates in the region.
“Our average bill is the lowest in the entire county,” Aguilar said.
Currently, Carlsbad customers pay an average of $73.91 per month for drinking water, compared to the county average of $114. Even after the July 1 rate increase, which would bump Carlsbad’s average up to $91.10 and then $109.62 by 2027, rates would remain below today’s county average, which is also expected to rise in the coming years.
Staff noted that, even with the increases, it still costs about one cent to deliver a gallon of tap water in Carlsbad.
Wastewater rates, which are also currently below the county average, will eventually surpass the 2025 county average under the new increases. Carlsbad customers now pay $51.74 per month for wastewater service. That amount will rise to $59.85 on July 1, to $68.20 in January 2026, and to $77.78 by 2027. The current countywide average is $66.02.
Several residents expressed frustration with the rate hikes during the public hearing.
Longtime resident Roseanne Bentley called the increases “tone deaf” and “beyond ridiculous, especially in these uncertain economic times.”
“It’s an egregious misuse of power for whatever reason to increase financial hardship for those of us who don’t know if we’ll have a job or are on tenuous fixed incomes like myself,” Bentley said. “It’s an economic burden we do not need to carry for you.”
However, Michael Drennan, a licensed civil engineer and representative of the American Society of Civil Engineers who also lives in Carlsbad, supported the increases. He said they were necessary to maintain the city’s water infrastructure and avoid more expensive repairs in the future.
“It’s still going to cost less than a penny a gallon to get clean, reliable water,” Drennan said. “Even though I don’t like paying it, I’m grateful.”
Some residents questioned whether the city properly notified customers about the proposed rate increases, citing the small number of formal protest letters received.
According to city staff, all approximately 30,000 customer accounts received mailed notices about the proposed increases and instructions on how to protest. Under Proposition 218, a voter-approved initiative from 1996, cities must notify customers at least 45 days in advance of a rate increase hearing. If a majority of customers submit written protests, the increase cannot move forward.
Staff reported receiving 102 protests against the water rate increase and 61 against the wastewater increase, well below the threshold needed to block the hikes.
The council ultimately voted 4-1 in favor of the rate increases, with Councilmember Melanie Burkholder dissenting.
Burkholder said she was concerned about the impact on businesses, seniors and others on fixed incomes. While she commended the city’s maintenance efforts, she suggested that “doing more with less” and deferring some maintenance might be necessary in the future to reduce costs.
Councilmember Kevin Shin also expressed concern, but noted that Carlsbad’s rates remain competitive compared to those of other cities.
He emphasized the importance of continued investment in infrastructure. “I hope we never say, O.K., let’s try to give back to the residents by not doing maintenance,” Shin said.
Mayor Keith Blackburn, who supported the increases, criticized state mandates for limiting local control over water pricing.
Although he suggested finding money elsewhere to offset the hikes, staff explained that under Proposition 218, funds collected for water, wastewater and recycled water services must be used strictly for those purposes.
Despite his concerns, Blackburn acknowledged the importance of maintaining the city’s systems.
“I don’t want to be on the news all the time like the City of San Diego is with broken pipes, flooded businesses, and things like that,” he said.
