The Santa Fe Irrigation District Board of Directors has unanimously approved rate increases for potable and recycled customers effective January 1, 2026. Potable water customers will see a 5% rate increase, a full pass-through of costs from the San Diego County Water Authority (SDCWA), the region's wholesale water provider. SDCWA provides 22 member agencies imported water from the Colorado River and State Water Project via the Metropolitan Water District of Southern California and desalinated seawater from the Claud “Bud” Lewis Carlsbad Desalination Plant. Recycled water customers will also see a 10% increase, a full pass-through of costs from the recycled water wholesaler, San Elijo Joint Powers Authority (SEJPA). SEJPA collects, treats, and recycles wastewater and its residuals for residents and businesses in the Solana Beach, Rancho Santa Fe, Olivenhain, and Cardiff communities. 

The Board of Directors approved a 0% increase in rates for SFID operational and capital costs, fully offsetting the proposed 5% increase in the District’s approved rates schedule, also known as the cost-of-service. Due to strong financial stewardship, the District is in a favorable financial position, enabling the use of reserves to mitigate the proposed increase. SFID staff also maximized use of the local water supply from Lake Hodges through operational changes throughout the year. 

Wholesale water costs make up approximately 50% of SFID water rates, which is why the pass-through from SDCWA has a significant impact on customers’ bills. SFID has been buying more expensive imported water from SDCWA since 2022, when water from Lake Hodges became unpredictable due to restrictions imposed by the Division of Safety of Dams. The restrictions were put in place due to the City of San Diego's lack of maintenance. When local water from Lake Hodges is available, SFID purchases less water from SDCWA. 

“Rate increases are always a difficult decision for our Board to pass on to our communities,” said Michael T. Hogan, Board President. “However, increases from our wholesale providers cannot be absorbed and must be passed through to our customers. I appreciate the hard work of our staff in finding creative ways to manage internal costs moving forward. We will continue to fight for our customers to regain our local water supply in Lake Hodges as soon as possible.” 

“We are in a unique and positive position to help our community by being able to absorb the SFID rate increase,” said Sandra D. Johnson, Board Vice-President. “Considering the funds we have in reserve, it is our duty to do what we can to help our customers during difficult economic times.”

 “SDCWA rate increases continue to have a significant impact on our communities and customer bills,” said Director Dana Friehauf. “SDCWA must find a way to reduce its costs and as the SFID representative to their Board of Directors, I am working diligently with the rest of the Board to mitigate future increases and continue to fight for our communities.”  

The rate increase will take effect on January 1, 2026, and customers will receive a notification by mail with more details about the impact on their bills and when they can expect the increase to be reflected in their statements. They can also find additional information at sfidwater.org and monitor their water use with an online portal. Customers having trouble paying their bills can contact SFID customer service for assistance.

The Santa Fe Irrigation District has approved the design contract for the Larrick Reservoir Seismic Retrofit Project. Built in 1964, the Larrrick Reservoir is an above-ground, pre-stressed concrete tank located in Solana Beach, near the fire station. A recently completed evaluation of the site determined that a seismic retrofit of the roof and areas supporting the roof, upgrades to the pump station, surrounding drainage areas, and upgrades to the exterior of the tank were necessary to ensure the reservoir’s continued ability to serve the City of Solana Beach. This reservoir and pump station provides 95% of the District’s service to customers west of    Interstate 5. 

The project's design phase will last through the beginning of the first half of 2026. During this time, the District will engage the community to facilitate dialogue on the construction timeline, aesthetics, environmental review, and community concerns. This design phase is the first phase of the project and occurs before the project is put out to bid for construction. At this time, the District has begun an environmental review of the site to determine the requirements to meet local and state regulatory standards for construction and long-term water supply operations. 

On a parallel track, the District is also working with the City of Solana Beach to evaluate how to incorporate the community’s request for a pocket park on the Larrick Reservoir site. The City of Solana Beach will manage the public input on the pocket park as the lead agency for the design, regulatory work, review, and final construction. Due to limits on water districts by the California Constitution under Proposition 218, the District cannot provide funding for the development and construction of the pocket park. However, the two entities are working together to develop an agreement on the use of the land for this neighborhood asset. They are committed to engaging the community during the process.  

“The Board and the District are committed to being good neighbors not only during construction, but as our facilities continue to live in perpetuity in the community, ” said Michael T. Hogan, Board President. “As we embark on the first phase of this project, we look forward to engaging the community to learn more about their concerns, while keeping them informed about the importance of the water operations of this facility. Our customers are our number one priority, and we remain steadfast in our commitment to them.” 

After input is considered for the Larrick Reservoir Project, the final design will be completed in the Summer of 2026, and the project bid will be sent out. The project is tentatively set to start construction in the Winter of 2026. 

During construction, the District and the City of Solana Beach will coordinate the timing of the pocket park development. The District will continue providing updates to customers and the City of Solana Beach on final design, construction progress, and anticipated completion as the project moves forward, while making every effort to minimize impacts to nearby residents. A community forum will be held at the beginning of 2026, and a notice will be sent to surrounding residents. Additional information will be posted on the SFID website sfidwater.org.