San Diego Council Approves New Flat-Rate Water Billing System

San Diego residents who conserve water will pay more under a new billing structure approved by the City Council. The change takes effect in January, coinciding with a separate water rate increase already voted into law. This shift ends the tiered pricing system that previously charged lower rates for efficient water users and higher rates for heavy consumers.

The council voted 6-2 on Tuesday to adopt the modified rate structure. The decision follows a 2015 lawsuit filed by Daniel Patz and others that challenged the city’s tiered system. The court ruled the previous structure invalid, forcing the city to implement a flat rate based solely on water usage. City leaders stated they disagreed with the ruling but were legally obligated to comply.

A city staff member presenting the agenda item told council members, “The city does not agree with the court's decision in the [Daniel Patz et al. v. City of San Diego] case. However, we are legally required to have a structure the court deems valid.” The city spent time attempting to overturn the ruling, including an unsuccessful appeal, and now faces a $40 million settlement obligation.

Under the old system, homeowners with water-efficient landscaping paid less per unit of water. Those with large yards or pools paid more. The new structure eliminates these tiers. The city estimates the average monthly bill for a low-use customer in a single-family home will increase by about $6. Conversely, the bill for a high-use customer is expected to drop by $20.

Council member Sean Elo-Rivera, representing District 9, voiced frustration during the meeting. He said, “It makes me angry because what is being imposed on us as a city and, therefore imposed, on the people of San Diego is a penalty for doing more to conserve water.” The change creates a financial reversal for households that made efforts to reduce consumption.

Residents have reacted with mixed views on the update. Isabel Jordan, a local resident, acknowledged the complexity of the situation. She said, “I mean we’re in Southern California. We’re in a water crisis, water shortage constantly, in and out of drought, so at first I was like, 'oh, everyone should pay the same rate,' then I kind of understand the incentive behind subsidizing more efficient consumers of water.”

The new billing method removes the financial incentive for conservation that existed under the previous tiered model. The flat rate structure applies to all single-family homes. The city expects the highest price impact to land on low-use customers, a group that includes households that have already adopted water-saving practices. The changes go live in January alongside the standard rate increase.