VISTA — Residents in Vista are expected to see annual increases to their wastewater bills over each of the next three years, as the city forecasts millions of dollars in needed capital improvement projects in the sewer system.
On Feb. 10, the Vista City Council unanimously approved proposals for an annual 5.5% rate increase for the city of Vista and a 4% increase for Buena Sanitation District, which is owned by the city and extends into portions of the county and San Marcos.
The recommended increase came from a rate study completed by the city and Water Resources Economics. Next, the City Council will receive a final report on the proposed rates in late March, and the city will mail notices to residents about the proposed rate increase.
The city will hold a Proposition 218 public hearing in May, and the new rates would take effect on June 25 for the start of the 2026-27 fiscal year.
City staff said there are several factors driving the need for higher rates. One major component is the $73.7 million in capital improvement projects needed between the city and Buena Sanitation District over the next three years.
Many of these capital improvements were identified during a 2025 Sewer Master Plan update, including pipe replacement to increase capacity, repairs to pipes using new cured-in-place pipe lining, septic service area buildouts, and pump station upgrades.
“That update identified numerous system deficiencies that required capacity upsizing,” said Sewer Engineering Manager Ken Knatz.
The city is also experiencing inflationary pressures, staff said. Around 40% of the city’s sewer billing costs go to the Encina Wastewater Authority, which treats the city’s wastewater and is facing increased costs for energy, chemicals, and biosolids transportation.
The city also needs to maintain its reserves in case of emergencies or catastrophic events.
“By doing 5.5 [percent] over the next three years, we meet our reserve targets and our coverage ratios,” said Sanjay Gaur, president of consulting group Water Resources Economics.
About 40% of sewer billing costs go to the Encina Wastewater Authority, which treats the city’s wastewater. Because Encina is experiencing increased costs for energy, chemicals, and biosolids transportation, higher costs are also passed on to the city.
If the city made no changes to rates, it would run out of reserves by 2030, staff reported. Planned capital improvements would also have to be significantly reduced, putting the city at risk of major infrastructure issues.
Vista last raised rates in 2022, and had not updated its Sewer Master Plan since 2017. Mayor John Franklin said this process has been long overdue.
“What we messed ourselves up here is by not doing this for 10 years, and we would have been looking at a lot lesser increases that wouldn’t have bothered the public as much,” Franklin said.
Under the 5.5% increase for Vista city customers, the annual bill for single-family residences would rise from $708 to $829 over three years. Multifamily residences would see an increase from $495 to $581.
For Buena customers, there are separate rates for those within city limits and those outside city limits in the county, but both would experience a 4% increase. For those in the city limits, the annual bill for single-family homes would increase from $663 to $770 over three years, and for single-family homes in the county, it would increase from $621 to $704.
Councilmember Dan O’Donnell said that over a three-year period, these increases will be well worth it to maintain the city’s sewer system.
“It’s a very negligible amount to make sure that your toilets flush and that our sewer system is not failing throughout our community. I do agree that this should not have waited as long as it did,” O’Donnell said. “To have a three-year high ramp up on these, I know will not sit well with the public.”
In addition to continuing the 5.5% rate, council members asked city staff to consider a rate increase below 5% as an option for City of Vista customers.
The council also unanimously voted to have all future sewer service charges collected directly on the San Diego County property tax roll, since only a small percentage of customers pay the city directly.
This change is expected to save the city around $25,000. City Councilmember Corinna Contreras requested that these additional funds be added to the $72,000 set aside for the lifeline rebate program, which provides qualifying residents with a 30% reduction in sewer charges.
“I’m really concerned about our seniors and folks that are on low incomes,” Contreras said.
The council agreed to this as well.
