DATE: October 1, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: PUBLIC HEARING TO APPROVE ADJUSTMENTS TO CUSTOMER RATES FOR WATER, RECYCLED WATER, AND WASTEWATER
RECOMMENDATION
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Staff recommends that the City Council hold a public hearing and adopt resolutions approving the following rate adjustments for calendar years 2026 and 2027:
* A 6% average increase in City water rates in both 2026 and 2027
* A 4% average increase in City wastewater rates in both 2026 and 2027
* Increases to the City Watershed Protection Charge
* Increase to Fire Protection Line Service Charge per connection.
* Adjustments to external water agency pass-through costs from the San Diego County Water Authority and Metropolitan Water District
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BACKGROUND AND ANALYSIS
The City of Oceanside supplies potable and recycled water to approximately 44,800 potable connections over a 42 square-mile area. In 2024, the City delivered a total of 21,423 acre-feet of water that is safe, reliable, properly metered, and available at all times. Ongoing capital projects to improve system reliability and expand local, more stable water sources are intended to mitigate the need for future rate increases associated with the rising cost of imported water and reliance on a limited and uncertain resource.
The City's water and wastewater rates are structured to recover costs through both fixed monthly charges and volumetric charges based on consumption.
The proposed rate adjustments would take effect on January 1 of both 2026 and 2027. City-controlled water rates would increase an average of 6% each year, as shown in Attachment 2. Wastewater rates are proposed to increase an average of 4% in both years as shown in Attachment 3. Similarly, The Watershed Protection Charge is proposed to increase by 14.8% in 2026 and 3.2% in 2027, as described later in this staff report.
The City-controlled portion of the rate increase is necessary to meet ongoing cost...
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