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.