$73M Capital Plan Looms Over Coastside Water District as Rate Hikes and Borrowing Debate Heats Up

The Coastside County Water District board adopted a state-mandated water shortage plan and approved a final change order on its flagship tank project Monday night, but the real signal came during a sobering preview of a $73 million, 10-year capital improvement program that board members acknowledged will require aggressive rate increases and significant borrowing. With a wholesale water rate hike from SFPUC already confirmed at 7.4% effective July 1, the fiscal pressure on this small coastal district is compounding fast.

• $73M draft capital plan draws warnings that rate hikes and borrowing are "inevitable" — board members say annual revenue can't keep pace

• 109-page Water Shortage Contingency Plan adopted unanimously, prepared entirely in-house to meet California Water Code mandate

• Carter Hill tank project nears finish line — board calls it the best infrastructure project ever built on the coast side, plans July celebration

• SFPUC wholesale rate increase of 7.4% officially approved, effective July 1, adding cost pressure ahead of June budget decisions

• $57K change order approved on the $11M DN Tanks contract, holding total true change orders at just 1.84%

Why it matters: The Coastside County Water District generates roughly $4–5 million annually in water revenue. The draft 10-year capital improvement program totals $73 million — up from $70 million last year — meaning the gap between what the district earns and what it needs to build is vast and growing.