September 17, 2026
"It's hard to know the burden this is putting on small businesses and the residents of our city." — Encinitas City Councilmember Kellie Hinze, April 2024
Hinze said that moments before the Encinitas City Council voted 5-0 to approve a five-year sewer rate schedule that will, by the time it finishes, come close to doubling what a large share of Encinitas homeowners pay for wastewater service. The vote happened. The increases are already underway. And if you are comparing two homes in Encinitas right now, there is a real chance that neither the listing sheet nor the standard cost-of-ownership worksheet will tell you which side of that increase your address falls on.
That is because Encinitas does not run on one sewer system. It runs on three, and which one serves a given address has nothing to do with price, size, or age of the home.
The city government operates two wastewater divisions directly. The Encinitas Sanitary Division serves the city's central area, and the Cardiff Sanitary Division covers the southern and eastern reaches that take in Cardiff-by-the-Sea and Olivenhain. A third agency, the Leucadia Wastewater District, is not a city department at all. It is an independent special district formed in 1959, and it handles sewage collection for most of Leucadia and New Encinitas, along with a portion of the La Costa area across the border in Carlsbad.
None of that distinction shows up in an MLS listing. A buyer looking at two homes priced identically, one in Old Encinitas and one in Leucadia, is comparing two properties governed by different boards, funded by different rate structures, and moving toward different numbers over the next several years.
In April 2024, the council approved a cost-of-service study setting rates for the Encinitas and Cardiff Sanitary Divisions through fiscal year 2029. At the time of the vote, the Encinitas Sanitary Division's average single-family bill stood at $39.24 a month. The approved schedule takes it to $93.68 a month by the end of the run, an increase city staff described as roughly 19% a year. The Cardiff Sanitary Division's average bill, $47.13 a month at the time, follows a slightly gentler curve of 15% a year for four years and 10% in the fifth, landing at $90.67 a month.
| District | Average monthly bill before FY2025 | Approved monthly bill by FY2029 |
|---|---|---|
| Encinitas Sanitary Division | $39.24 | $93.68 |
| Cardiff Sanitary Division | $47.13 | $90.67 |
The city's own budget review in May 2025 confirmed the schedule is still on track, noting that the original cost-of-service analysis assumed full execution of the wastewater capital improvement program through 2029. In January 2026, the council approved a related fee schedule covering sewer engineering and miscellaneous services, adjusted annually to the region's cost-of-living index. None of this reads like a one-time correction. It reads like a multi-year financial plan the city has already committed to, and anyone buying into an Encinitas Sanitary Division or Cardiff Sanitary Division address today is buying into whatever years of that plan remain.
The increases are funding work on pipe and pump infrastructure that in some cases dates to the 1960s. The Poway-based engineering firm Ardurra is leading rehabilitation of the Olivenhain trunk sewer and the pump stations at Cardiff and Moonlight Beach, along with a pipe realignment near Cottonwood Creek. The Cardiff-side project carries a price tag just over $4 million. The Encinitas-side work runs closer to $9 million. Those are capital costs that have to be recovered somewhere, and the rate schedule is how the city has chosen to recover them, ratepayer by ratepayer, through the back half of this decade.
None of the above applies if a home's address falls inside the Leucadia Wastewater District instead. LWD charges a flat residential fee per Equivalent Dwelling Unit rather than billing by metered flow. As of July 2025, that charge is $579 a year, or about $48.25 a month, collected in two installments through the property tax bill rather than a separate monthly statement. The district describes its own rate as one of the lowest in San Diego County, where the average residential sewer bill runs above $50 a month. LWD also operates a Sewer Lateral Grant Program that helps offset the cost of repairing the pipe connecting a home to the street, a repair that in the city-run divisions falls entirely on the property owner.
The practical effect is a real gap. A Leucadia or New Encinitas home served by LWD sits on a comparatively low, flat fee that has not been swept into the five-year escalation approved for its city-run neighbors. That gap is not an accident of geography. It exists because three governing bodies, running three separate capital plans, happen to draw their service boundaries through the same coastal city.
If you are weighing a home in Old Encinitas against one in Leucadia at a similar asking price, and both look the same on a monthly cost worksheet, you are missing a line item that neither the listing sheet nor most mortgage calculators surface. Depending on which side of the boundary the home sits, you could be stepping into a wastewater bill on a fixed schedule already approved to climb toward $90 or more, or one that has stayed near $48 and shows up quietly on the property tax bill twice a year.
Neither number changes what the house is worth the way a structural defect or an undisclosed easement would. It is a fixed, recurring cost running for years that most buyers do not think to check until the first bill or tax statement arrives, and by then the sale has already closed.
Does the wastewater district affect what I can build on a lot? No. These three agencies handle sewage collection and treatment, not zoning or development review. Those questions still run through the city's planning process separately.
Will rates keep climbing after 2029? The current approved schedule for the Encinitas and Cardiff Sanitary Divisions runs through fiscal year 2029. What happens after that depends on a future cost-of-service study the city has not yet conducted.
Does one district treat wastewater to a different standard? No. The Encinitas Sanitary Division sends wastewater to the Encina Water Pollution Control Facility in Carlsbad. The Cardiff Sanitary Division uses the San Elijo Water Reclamation Facility in Cardiff. Leucadia Wastewater District is also a member of the six-agency Encina Wastewater Authority, which treats water at the same regional Carlsbad facility. All three are regulated public systems.
For a buyer comparing two Encinitas addresses that look identical on paper, this is exactly the kind of parcel-level detail worth resolving before an offer goes in, not after escrow closes. Kathleen Gelcich and her team built their practice on tracing the technical and regulatory lines that never make it onto a listing sheet, coastal North County property by property. If you are weighing homes across Encinitas's sub-neighborhoods and want the full carrying-cost picture for a specific address, request a private home valuation and we will walk the parcel with you before you write anything.
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