Residents of Carlsbad are bracing for higher utility bills following the City Council’s recent decision to approve a plan that will increase water and sewer rates by 49% over the next three years. The first adjustment—a 20% hike—will take effect on July 1, 2025, raising the average single-family home’s monthly water bill from $73.91 to $91.10.

City staff members cited several reasons for the increases, including a 14% rise in the cost of purchasing water from the San Diego County Water Authority, ongoing inflation, and the escalating costs of infrastructure maintenance and capital improvements. Councilmembers acknowledged the burden this would place on residents but emphasized the need to maintain reliable water service and prevent more expensive problems down the line.

By state law, municipal water and sewer rates must reflect the cost of service and cannot be subsidized by other city funds. Despite the increases, Carlsbad's rates will still remain below the San Diego County average, where the typical single-family monthly bill is $114.49.

The City Council approved the measure by a 4-1 vote, with Councilmember Melanie Burkholder opposing the rate hikes, arguing that the city should pursue cost-saving measures rather than passing rising expenses onto residents. Other councilmembers, however, warned that deferring maintenance could ultimately lead to greater costs and service disruptions in the future.

As part of the rate structure changes, Carlsbad will also move from a three-tiered residential water pricing system to a two-tier system. The adjustment is intended to better match costs with water usage and simplify billing, as studies showed minimal cost differences between the highest usage tiers. Commercial water rates and recycled water rates will also rise, though the impact will vary depending on individual usage patterns.

A Broader Water Crisis in San Diego County

Carlsbad’s situation is part of a larger challenge facing the entire region. Across San Diego County, water rates are climbing as the San Diego County Water Authority struggles to balance mounting debts with declining water consumption.

Historically, the Water Authority made major investments, including purchasing desalinated water from the Claude “Bud” Lewis Desalination Plant in Carlsbad and securing additional water supplies from the Imperial Irrigation District. These deals ensured a stable supply but locked the region into expensive, long-term contracts. Now, with residents and businesses using less water than projected, the cost per unit of water is climbing sharply.

In response to continued rate increases, some leaders are calling for dramatic structural changes. San Diego City Councilmember Sean Elo-Rivera recently suggested it may be time for the City of San Diego to consider leaving—or even dissolving—the Water Authority, a proposal that would have been unthinkable just a few years ago. Critics argue that the Water Authority needs to revise its financial planning, better align projections with actual water demand, and take immediate steps to stabilize rates.

However, dissolving the Water Authority could bring its own set of challenges, including potential dependence on the Metropolitan Water District, higher future costs, and reduced local control over water resources. Water Authority leaders caution that even with structural changes, the high fixed costs from past deals will continue to pressure rates for years to come.

What’s Next?

For Carlsbad residents, the immediate concern is preparing for steadily rising bills over the next three years. By January 2027, the average combined monthly water and sewer bill is projected to reach $187.40, an increase of $61.75 from current rates.

As San Diego County grapples with the larger water affordability crisis, discussions about the future of regional water management are likely to intensify. In the meantime, local leaders stress the importance of continuing to invest in infrastructure to protect service reliability, even as communities search for long-term solutions to growing costs.

Learn more here: https://www.carlsbadca.gov/departments/utilities/rates