SAN DIEGO (FOX 5/KUSI) -- The San Diego City Council voted 5-4 in favor of raising water fees 14.7% in 2026 and 14.5% in 2027, and they will continue to go up from there.

City leaders warned a lower rate increase could spook bond holders, causing the city to layoff around 500 people.

“Given the current environment where inflation in other areas as well this just adds to the burden,” said Alan Gin, a University of San Diego professor at the Knauss School of Business.

Gin says the city is struggling to plug the budget hole of $250 million, but taking it directly from residents has a direct impact on the success of San Diego’s main street economy.

Gin notes while higher water prices will have some conservation positives, he fears all of the shifted costs speed up a potential financial slo

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