Item 10a
Councilmember Kelly Purvis
Metro Wastewater JPA
Attended the March 6, 2025, meeting of the Metro Wastewater JPA Board of Directors.
Fiscal Year 2026-2030 Five-Year Financial Outlook
1. Financial Outlook Scope – The five-year financial forecast identifies the system-wide revenue needs for water and wastewater operations, capital investments, and financial metrics.
2. Projected Rate Adjustments – Public Utilities' charges are expected to rise beyond FY 2025, requiring future City approval for rate changes.
3. Key Cost Increases – The forecast includes cost pressures from rising chemical, borrowing, and energy expenses, as well as higher capital project bids.
4. Major Wastewater Projects – The budget includes critical strategic additions like Pure Water Phase 1 & 2 and compliance with National Pollutant Discharge Elimination System (NPDES) regulatory requirements.
5. Operational Expenditures – Wastewater operational costs are projected to increase yearly, with major spending categories including personnel, fringe benefits, supplies, and contracts.
6. Non-Personnel Costs – Over 67% of O&M costs come from supplies, contracts, IT, and energy/utilities, with significant expenditures on external vendors and city department charges.
7. Capital Investment Plan – Major capital expenditures include sewer treatment plants, large pump stations, trunk sewers, and Pure Water Phase 1 & 2 projects, with a peak in FY 2028.
8. Wastewater Rate Forecast – Rate increases are projected between 3% and 8% annually through 2029, reflecting funding needs.
9. Metro JPA Assumptions – Assumptions include continued short-term borrowing to smooth Pure Water pay-go billing risks, leveraging low State Revolving Fund (SRF) interest rates.
10. Revenue Offsets – North City Recycled Water revenues will help offset some costs, though there is no finalized true-up cost estimate for Pure Water Phase 1.
Requested and received San Diego FY2026 PUD Metro Budget which shows Coronado’s estimated usage and costs. (Attached)
Next meeting scheduled for April 3, 2025 – Tour of North County Pure Water Facility Item 10a.
Councilmember Purvis
TREATMENT PARAMETER
AMOUNT %
WASTEWATER FLOW $161,618,013 50.8% 62,380 (a) $2,590.88 /per Million Gallons SUSPENDED SOLIDS $82,929,932 26.1% 146,573 (b) $565.79 /per Thousand Pounds CHEMICAL OXYGEN DEMAND $73,655,571 23.1% 323,486 (c) $227.69 /per Thousand Pounds TREATMENT PARAMETER TOTAL $318,203,515 100.0%
PURE WATER CAPITAL PARAMETER (d)
AMOUNT %
WASTEWATER FLOW ($10,819,532) 48.2% 329,609 (a) ($32.83) /per Million Gallons SUSPENDED SOLIDS ($6,172,969) 27.5% 119,283 (b) ($51.75) /per Thousand Pounds CHEMICAL OXYGEN DEMAND ($5,454,660) 24.3% 329,609 (c) ($16.55) /per Thousand Pounds 2050 PARAMETERS* ($22,447,161) 100.0%
GRAND TOTAL $295,756,354
(a) Units of Flow - Million Gallons Per Year
(b) Units of SS - Thousands of Pounds per Year
(c) Units of COD - Thousands of Pounds per Year
* Pure Water capital allocations based on Exhibit G of the Amended and Restated Regional Wastewater Disposal Agreement
TABLE A
CITY OF SAN DIEGO - PUBLIC UTILITIES DEPARTMENT
FISCAL YEAR 2026 ESTIMATED UNIT COSTS
FUNCTIONAL-DESIGN COST ALLOCATION METHOD
FY 2026
BUDGET UNITS COST PER UNIT
Updated 1/14/2025
Item 10a.
Councilmember Purvis
TOTAL FLOW,
AGENCY FLOW (a) SS (a) COD (a) SS & COD PURE WATER CAP (b) CHULA VISTA $16,615,986 $9,699,847 $8,466,359 $34,782,192 ($2,626,019) $32,156,173 CORONADO $1,308,868 $808,408 $566,186 $2,683,462 ($258,685) $2,424,777 DEL MAR $13,871 $8,185 $4,982 $27,038 ($4,461) $22,577
EAST OTAY MESA $322,015 $171,365 $155,098 $648,478 ($246,048) $402,430 EL CAJON $8,025,610 $5,244,458 $3,934,027 $17,204,095 ($111,527) $17,092,568 IMPERIAL BEACH $2,268,969 $1,198,267 $973,733 $4,440,969 ($316,729) $4,124,240 LA MESA $4,741,055 $1,588,988 $1,407,431 $7,737,474 ($633,669) $7,103,805 LAKESIDE/ALPINE $3,221,143 $1,717,439 $1,594,735 $6,533,316 ($34,328) $6,498,988 LEMON GROVE $1,734,919 $521,648 $486,351 $2,742,918 ($313,185) $2,429,734 NATIONAL CITY $4,331,848 $2,164,203 $2,028,986 $8,525,037 ($640,165) $7,884,872 OTAY $208,071 $82,165 $34,119 $324,355 ($102,650) $221,705 PADRE DAM $3,180,520 $3,730,085 $2,024,336 $8,934,941 ($99,709) $8,835,233 POWAY $2,823,826 $943,575 $871,112 $4,638,513 ($419,426) $4,219,086 SPRING VALLEY $5,392,021 $2,859,281 $2,568,475 $10,819,777 ($845,141) $9,974,636 WINTERGARDENS $940,284 $525,357 $469,262 $1,934,903 ($9,910) $1,924,994 SUBTOTAL PARTICIPATING AGENCIES $55,129,007 $31,263,270 $25,585,191 $111,977,469 ($6,661,650) $105,315,819 SAN DIEGO $106,489,006 $51,666,661 $48,070,380 $206,226,047 ($15,785,511) $190,440,535 TOTAL $161,618,013 $82,929,932 $73,655,571 $318,203,515 ($22,447,161) $295,756,354 (a) Allocations based on estimated annual flows and strength loadings - See Table C (b) Allocations based on Column 12 of Exhibit G of the Amended Restated Agreement
TABLE B
CITY OF SAN DIEGO - PUBLIC UTILITIES DEPARTMENT
PROJECTED DISTRIBUTION OF SYSTEM WASTEWATER COSTS - FISCAL YEAR 2026
FUNCTIONAL-DESIGN BASED ALLOCATION METHOD
ALLOCATION OF COSTS BY FLOW, SUSPENDED
SOLIDS AND CHEMICAL OXYGEN DEMAND
ALLOCATION OF COSTS
BY 2050 PARAMETERS
TOTAL ALLOCATED
COSTS (TOTAL
FLOW, SS & COD +
PURE CAP)
Item 10a.
Councilmember Purvis
2026 FLOWS SS COD 2026 FLOWS SS COD Exhibit G
AGENCY AVERAGE SS COD million thousand thousand million thousand thousand Percentages FLOW - mgd (a) mg/l (b) mg/l (b) gallons pounds pounds gallons pounds pounds CHULA VISTA 16.770 294 692 6,121.050 15,026 35,350 6,454.427 14,216 34,655 11.699% CORONADO 1.321 311 588 482.165 1,252 2,364 508.426 1,185 2,318 1.152% DEL MAR 0.014 297 488 5.110 13 21 5.388 12 20 0.020%
EAST OTAY MESA 0.325 268 654 118.625 265 648 125.086 251 635 1.096% EL CAJON 8.100 329 666 2,956.500 8,124 16,426 3,117.523 7,686 16,103 0.497% IMPERIAL BEACH 2.290 266 583 835.850 1,856 4,066 881.374 1,756 3,986 1.411% LA MESA 4.785 169 403 1,746.525 2,462 5,877 1,841.648 2,329 5,761 2.823% LAKESIDE/ALPINE 3.251 269 672 1,186.615 2,661 6,659 1,251.243 2,517 6,528 0.153% LEMON GROVE 1.751 152 381 639.115 808 2,031 673.924 765 1,991 1.395% NATIONAL CITY 4.372 252 636 1,595.780 3,353 8,472 1,682.692 3,172 8,305 2.852% OTAY 0.210 199 223 76.650 127 142 80.825 120 140 0.457% PADRE DAM 3.210 591 865 1,171.650 5,778 8,452 1,235.463 5,467 8,286 0.444% POWAY 2.850 168 419 1,040.250 1,462 3,637 1,096.906 1,383 3,566 1.869% SPRING VALLEY 5.442 267 647 1,986.330 4,429 10,724 2,094.513 4,191 10,513 3.765% WINTERGARDENS 0.949 282 678 346.385 814 1,959 365.250 770 1,921 0.044% SUBTOTAL PARTICIPATING AGENCIES 55.640 286 630 20,308.600 48,430 106,827 21,414.687 45,821 104,726 29.677% SAN DIEGO 107.476 245 613 39,228.760 80,037 200,711 41,365.313 75,724 196,764 70.323% REGIONAL SLUDGE RETURNS 8.884 (256) (224) 3,242.640 (6,923) (6,049) TOTAL 172.000 232 576 62,780.000 121,545 301,490 62,780.000 121,545 301,490 100.000% (a) Estimated flows based on sewage Flow projections provided by Participating Agencies & San Diego through December 2024. (b) SS and COD characteristics based on samples taken by Public Utilities Environmental Monitoring and Technical Services Division in FY 2024 (Unaudited).
Otay loads based on FY 2024 Mass Balance. “Per ARA 5.2.4.2 sludge return is allocated proportionally to each agencies based on their flow and strengths values. Values shown here are for informational purposes” Mass Balance provided by the PUD Engineering & Program Management division.
TABLE C
CITY OF SAN DIEGO - PUBLIC UTILITIES DEPARTMENT
SYSTEM WASTEWATER CHARACTERISTICS - FISCAL YEAR 2026
SYSTEM STRENGTH LOADINGS INCLUDED
WASTEWATER CHARACTERISTICS UNADJUSTED ANNUAL USE ADJUSTED ANNUAL USE Item 10a.
Councilmember Purvis
DESCRIPTION FLOW FLOW SS SS COD COD TOTAL
% COSTS % COSTS % COSTS COSTS
OPERATION AND MAINTENANCE:
TRANSMISSION AND SYSTEM MAINTENANCE $23,378,307 100.0% $23,378,307 0.0% $0 0.0% $0 $23,378,307 OPERATIONS & MAINTENANCE $104,349,429 40.3% $42,090,973 32.0% $33,443,708 27.6% $28,814,749 $104,349,429 TECHNICAL SERVICES $15,796,283 30.0% $4,738,885 40.0% $6,318,513 30.0% $4,738,885 $15,796,283 COGENERATION $2,795,150 0.0% $0 60.0% $1,677,090 40.0% $1,118,060 $2,795,150 METRO ADMIN & GENERAL EXPENSES - 41508 $38,504,057 48.3% $18,581,733 28.2% $10,846,618 23.6% $9,075,706 $38,504,057 METRO ADMIN & GENERAL EXPENSES - 41509 $14,305,260 48.3% $6,903,597 28.2% $4,029,801 23.6% $3,371,861 $14,305,260 PURE WATER O & M $6,810,192 48.3% $3,286,541 28.2% $1,918,435 23.6% $1,605,215 $6,810,192 TOTAL OPERATIONS AND MAINTENANCE $205,938,678 48.06% $98,980,036 28.28% $58,234,165 23.66% $48,724,476 $205,938,678 CAPITAL IMPROVEMENT PROGRAM:
PAY-AS-YOU-GO METRO 41509 $61,415,306 55.8% $34,266,567 22.0% $13,510,001 22.2% $13,638,739 $61,415,306 DEBT SERVICE $50,849,532 55.8% $28,371,411 22.0% $11,185,766 22.2% $11,292,356 $50,849,532 TOTAL NON-PUREWATER CAPITAL IMPROVEMENT PROGRAM $112,264,838 55.8% $62,637,977 22.0% $24,695,766 22.2% $24,931,094 $112,264,838 TOTAL O&M & CAPITAL IMPROVEMENT PROGRAM $318,203,515 50.8% $161,618,013 26.1% $82,929,932 23.1% $73,655,571 $318,203,515 PURE WATER CAPITAL RATE COST (PAY-GO) ($22,447,161) 48.2% ($10,819,532) 27.5% ($6,172,969) 24.3% ($5,454,660) ($22,447,161) TOTAL O&M & CIP + PURE WATER CAPITAL RATE COSTS $295,756,354 $150,798,481 $76,756,962 $68,200,911 $295,756,354 COSTS
TABLE D
CITY OF SAN DIEGO - PUBLIC UTILITIES DEPARTMENT
ALLOCATION OF FISCAL YEAR 2026 ESTIMATED BUDGET
FUNCTIONAL-DESIGN BASED ALLOCATION METHOD
FY 2026
BUDGET
ALLOCATION OF COSTS
Item 10a.
Councilmember Purvis