MWSD Approves Budget, Rate Hikes as Seal Cove Disputes and Expired Easement Loom

The Montara Water and Sanitary District (MWSD) board locked in its fiscal year 2026-27 finances Thursday, unanimously adopting a budget that sets aside $2.4 million for a major sewer force main project and raising water and sewer rates roughly 3% — all while confronting a growing web of interagency tensions, from an expired land agreement beneath a shared sewer plant to Seal Cove residents pushing state regulators to investigate the district's infrastructure.

• Board adopts FY 2026-27 budget with $2.4M contingency for MWSD's share of a $12 million SAM force main replacement in Montara, plus a 3.8% cost-of-living raise for staff

• Water and sewer rates rise 3% under the revised master fee schedule; construction fees drop 0.51%

• Expired 40-year easement beneath the SAM sewer plant discovered during solar project review; Half Moon Bay is leveraging renewal for unrelated infrastructure concessions

• LAFCO accelerates all coastside municipal services reviews by one year after Seal Cove residents allege MWSD abandoned sewer service — claims LAFCO staff flagged as inaccurate

• County proposes a look-back formula to 2013 to unlock roughly 180 stalled building permits on the Mid-Coast after Cypress Point consumed the entire 40-unit annual housing cap through 2028

• Seal Cove homeowner demands answers on abandoned mains; board declines to respond citing pending legal claims

The board unanimously adopted the FY 2026-27 water and sewer budget and approved a 3.8% cost-of-living increase for all non-exempt employees and the district clerk, effective July 1, 2026.