SAN DIEGO (FOX 5/KUSI) — Water districts across San Diego County are grappling with a dramatic price hike from the San Diego County Water Authority, which is projected to increase water prices by nearly 40% over the next few years.

Olivenhain Municipal Water District board members on Wednesday night voted to approve a budget that will affect 87,000 customers. A spokesperson for the district says they don’t know yet exactly how much this will cost their customers.

“If you think gas prices are high, imagine paying nearly 40% more for water over the next two years,” said Dee Dee Camarillo, a local customer. “I think we already pay quite a bit, and I wouldn’t be happy if it went up any higher.”

Bobbie Henry, another customer, echoed the sentiment: “It’s just insane, especially with how much everything else costs right now. The last thing we need is for water prices to go up as well.”

Olivenhain Municipal Water District General Manager Kimberly Thorner described the price increase as unprecedented. The district, like many others, relies on wholesale drinking water from the San Diego County Water Authority. Thorner explained that the authority has secured reliable water supplies through fixed take-or-pay contracts, including water from the Colorado River and desalination plants.

“For decades, they have been building their reliable supplies and securing contracts for water,” Thorner said. “These contracts have to be paid for whether or not there is a demand.”

The authority’s contracts are designed to ensure a steady water supply during drought years. However, following a couple of wet winters and effective conservation efforts, the region’s water reserves are full, leading to a surplus.

“Demand has actually dropped below the point of what their take-or-pay contracts are,” Thorner said. “San Diego currently has more water than it needs, but the rates still have to go up to keep the Water Authority sustainable.”

In light of high inflation and supply chain issues, Thorner emphasized that passing along a nearly 40% rate increase to customers is impractical. The board is therefore exploring budget cuts to reduce the financial burden on customers.

“We are delaying hiring positions, freezing current positions, and selling some property to offset rates,” Thorner said. “The goal is to keep the rate hike under 10%, which would mean an extra six or seven dollars a month for the median customer.”

“That’s doable. I could go for that,” Camarillo said. Henry added, “It sounds a lot better than 40%, that’s for sure.”

The board is also considering delaying non-critical projects to help mitigate the rate hike.

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