City Won't Pass Water Rate Hike on to Residents

The city will absorb millions of dollars in additional water costs instead of passing a new rate hike on to customers, Mayor Jerry Sanders announced Thursday.

"The cost of water is an enormous concern for everyone in this city, from the families trying to keep their households solvent to the businesses struggling through the worst economy since the 1930s," Sanders said in a statement.

"We are doing everything in our power to postpone any future water-rate increases as long as possible."

The announcement followed the San Diego County Water Authority's decision on Thursday to increase water rates by more than 7 percent, part of a $1.42 billion budget passed by the Board of Directors. The budget represents a 16 percent decrease from a previous two-year outlook, and includes a $235 million reduction in capital spending. The County Water Authority also plans to lower department operating costs by 7 percent and cut the equivalent of 31 full-time positions.

The Authority takes water from the main Southern California wholesaler, the Metropolitan Water District, and passes it down to 24 member districts, including San Diego and Padre Pam Water District.

Sanders accused the Metropolitan Water District of artificially increasing water costs.

City News Service contributed to this report.

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