Parking, Water, Budget Woes Loom as San Diego City Council Reconvenes in 2026

The San Diego City Council reconvenes on Monday after a two-week winter recess with a host of contentious issues to deal with. One of the first orders of business is a report on the five-year financial outlook of the city’s water and wastewater utility funds. Last October, the council approved two years of steep water rate hikes in order to pay for  federally mandated water infrastructure and the rising cost of water purchases.

The financial outlook report, however, states that two years of rate increases will not be enough to keep the utility funds solvent. Finance officials say, barring significant changes in costs or revenues, the city will have to raise water and sewer rates by 11.5% in fiscal year 2028, 11% in fiscal years 2029 and 2030 and 5% in fiscal year 2031.