Having learned its lessons years ago that it is best to lay out just how much money trouble it faces, the city of San Diego is warning investors it will have to come up with nearly $4 billion over two decades to comply with regulations on how it handles stormwater runoff.
In its newly released Comprehensive Annual Financial Report, city officials are acknowledging they can’t see any way to comply with clean water requirements that does not involve up to $3.96 billion in new costs through 2031. That’s up from $2.7 billion the city told investors it may have to pay in July.
The money will have to come from the same fund that pays for police, fire protection, parks and other core services. And the compliance will also require private builders to step up their game as well, increasing construction costs.