SOLANA BEACH — Ratepayers in Solana Beach will see an increase in sewer fees ranging from 10% to 8% over the next three years to fund sewer and wastewater infrastructure maintenance and operation.
The Solana Beach City Council agreed on March 12 to adopt increased sewer rates for the next three years and to bring back rates for another review in 2028. The city’s rates have been $682.30 per equivalent dwelling unit since 2020, with no increases in the past five years.
The council considered several scenarios presented by consultant Raftelis Finance, including annual increases ranging from 6.5% to 11%. Ultimately, the council agreed to a variable schedule with 10% increases in 2026 and 2027, 8% in 2028, and 7% in 2029 and 2030.
The city also agreed to reassess rates in 2028 if they need to be adjusted.
Under this schedule, rates would increase from $750.54 in 2026 to $1,020.84 in 2030. These proposed rates must now be confirmed at a public hearing on May 7.
“We do have to acknowledge that we haven’t raised rates in five years, so people have had a really nice time of really steady rates from us,” said Councilmember Dave Zito. “Over time, I’d also like to plan for minimizing rate shock to our ratepayers and not having to shock them with really large increases.”
Different rate scenarios were developed based on a three-year estimate of capital improvement needs from the San Elijo Joint Powers Authority (JPA), which manages all wastewater services for Solana Beach, Encinitas and Del Mar.
While rates usually are adopted on a five-year schedule, council members said they preferred to bring rates back for review in three years, as the San Elijo JPA is still completing its full facilities master plan with exact project costs for the coming years.
At this point, the San Elijo JPA expects to need around $9.6 million in capital improvement over the next three years.
These projects include safety improvements to headworks, which block large debris early in the water treatment process; refurbishment of sedimentation tanks, which remove particles from water; replacement of the RAS (return activated sludge) pipes; and refurbishments of digesters, which prepare solid material removed from the water to be made into fertilizer.
“There is that eyes-wide-open, that we know that these projects will be expensive. Our goal is to be smart about it, to make sure we align these projects so they provide good value and to make sure that we can maintain our existing assets as much as possible,” said General Manager Michael Thornton.
Solana Beach City Council also approved a gradual increase to its contribution toward the San Elijo JPA capital improvement project fund rather than full funding.
In addition to contributions from member agencies, the San Elijo JPA’s capital projects are also funded by recycled water revenue, financing such as bonds, and grants.
The city also has to consider how to maintain a minimum level of reserves in its Sanitation Fund, which can also be used to fund capital improvement projects. Presently, the city’s reserves are projected at around $12.5 million for fiscal year 2025, well above the target of $7.2 million.
Some city council members advocated for a rate scenario with an 8% increase annually for the next five years. However, they recognized that the other scenario would result in higher reserve savings for a small rate difference.
“I know we have these water rates that are going up exponentially and other rates as well, but when it comes down to $13.66 cents, it doesn’t seem that dramatic when you look at what we net at the end with being able to have our reserves in a healthier place,” said City Councilmember Jewel Edson.
By next year, this rate increase will give Solana Beach one of the more expensive annual sewer costs compared to other agencies’ current rates, including Escondido ($725), Poway $723), Vista $708), Cardiff ($663), Carlsbad ($646), Encinitas $635), Leucadia Wastewater District ($517) and Vallecitos Water District ($468).
The agencies with the current highest rates are Del Mar, at $2,181; Fairbanks Ranch Community Services District, at $1,230; and Oceanside, at $834.
However, Solana Beach Finance Director Rachel Jacobs noted that these figures are based on 2025 rates, and several cities will also increase their rates in the coming years.
“Several of them, as you can see here, have rate increases that will be happening in 2026, so a lot of those will put us not as much on the top end as we would be with the proposed increases, but kind of level us more into the middle,” Jacobs said.
