ACTION:
____________________________
Clerk/Secretary
Department: Engineering Item No: D2
Prepared by:
Ken Knatz, Sewer Engineering Manager
Erin Adams, Administrative Programs Manager Meeting Date: February 10, 2026 Approved by:
Greg Mayer, Director of Engineering
John Conley, City Manager Agenda Location: Discussion
SUBJ
ECT: SEWER RATES PROPOSED FOR FISCAL YEARS 2026/27 TO 2028/29 RECO
MMENDATION:
1. Provide direction to staff on proposed sewer rates for Fiscal Years 2026/27 to 2028/29.
2. Adopt City Council Resolution No. 2026- , approving collection of all future fiscal year sewer service charges on the San Diego County Property Tax Roll.
3. Adopt Buena Sanitation District Resolution No. 2026- , approving collection of all future fiscal year sewer service charges on the San Diego County Property Tax Roll.
CORRE
LATION TO CITY COUNCIL GOALS: Fiscal Responsibility.
PRI
OR ACTION: On November 14, 2017 adopted City Ordinance No. 2017-19, establishing rates for sewer service charges for the Vista Sewer System (Vote: 5-0).
On N
ovember 14, 2017, adopted Buena Sanitation District Ordinance 2017-1, establishing rates for sewer service charges for the Buena Sewer System (Vote: 5-0).
ST
ATEMENT ON THE SUBJECT: The City of Vista and Buena Sanitation District are conducting a Sewer Cost of Service Rate Study to ensure compliance with Proposition 218 and maintain financial sustainability. The last rate study was completed in August 2017, and the most recent rate increase occurred on July 1, 2022. A financial assessment was conducted in March 2024 and confirmed the agencies’ ability to meet its obligations without rate increases through FY 2027.
Si
nce then, the City and District completed an update to the Sewer Master Plan in May 2025. The master plan identified significant Capital Improvement Projects (CIP) for FY 2027–FY 2029, totaling approximately $50.2 million for Vista and $23.5 million for Buena. The CIP was included as part of the FY 2024/25 and 2025/26 Capital Project Budget Mid-Cycle update and approved on June 10, 2025. The addition of the CIP necessitates a review of rates to ensure funding for system upsizing and rehabilitation needed to meet planned growth.
Met
hodology. Sewer service charges are used for the maintenance, repair, replacement, operation, treatment, debt service, enforcement and maintaining sufficient emergency reserves. The rate study process evaluates cost of these services through a comprehensive of the following elements:
• Policy Framework: Establishing objectives such as revenue stability and customer affordability.
AGENDA
REPORT
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
SUCCESSOR AGENCY
BUENA SANITATION DISTRICT
JOINT POWERS FINANCING AUTHORITY
Directed staff to finalize the sewer cost of service rate study report using the proposed increase of 5.5% for City of Vista customers and 4.0% for Buena Sanitation District customers for FY 26/27 - 28/29. Adopted the following: 1) City Council Resolution No. 2026-27. Vote: 5-0; 2) Buena Sanitation District Resolution No. 2026-02. Vote: 5-0; Directed staff to increase funding for the Lifeline Sewer Rebate Program by $25,000 as part of the next operating budget discussion.
Vote: 5-0