Oceanside clears $300m sewer-financing pathway for La Salina transition
City of Oceanside Water Utilities Department, California · Meeting date: November 4, 2026 · Published: November 6, 2026
The Oceanside City Council unanimously adopted a resolution allowing the city to reimburse itself for eligible sewer capital costs incurred before any future tax-exempt debt issuance. The action supports a slate of lift station, force main, outfall and gravity-sewer works associated with consolidating flows at the San Luis Rey Water Reclamation Facility.
Key points
- Council approved the reimbursement resolution 5-0, with a maximum anticipated principal amount of $300 million.
- The resolution does not issue bonds, secure financing or commit Oceanside to borrow; any debt issuance would require separate council action.
- Named projects include the Oceanside Mesa Garrison lift station and force main, Buccaneer lift station and force main, Mission Avenue force main replacement, land outfall replacement, and Mission Avenue gravity sewer lining and replacement.
- Staff said the city is pursuing grants, loans and potential tax-exempt financing, while developer impact fees also contribute to the projects.
Full report
Oceanside City Council has opened the way for up to $300 million in potential tax-exempt financing for sewer capital works required to support the planned decommissioning of the La Salina Wastewater Treatment Plant.
In a unanimous 5-0 vote on 4 November, the council adopted a reimbursement-resolution framework that permits the city to use available sewer funds to begin eligible projects and later reimburse those expenditures if tax-exempt financing is secured. The resolution sets a maximum anticipated principal amount of $300 million.
Financial Services Director Jill Moya stressed that the vote did not approve bonds, secure financing or commit the city to borrow. Those actions would return to council separately. Rather, the measure allows Oceanside to preserve financing flexibility while it evaluates grants, loans and tax-exempt debt options in pursuit of the lowest possible borrowing cost.
The need for the programme is tied to a planned shift in wastewater operations. With La Salina due for decommissioning, Oceanside plans to consolidate sewer flows at the San Luis Rey Water Reclamation Facility. Staff identified five infrastructure projects needed to support that transition: the Oceanside Mesa Garrison lift station and force main; the Buccaneer lift station and force main; the Mission Avenue force main replacement; the land outfall replacement; and Mission Avenue gravity sewer lining and replacement.
The council also approved, through its consent calendar, a $208,758 amendment to Ardurra Group’s professional-services agreement for additional engineering and construction-phase services for the Buccaneer Force Main. The amendment lifts Ardurra’s total contract value to $731,596.
During discussion of the financing resolution, a public speaker questioned whether costs not covered by reimbursements or subsidies would fall to ratepayers. Staff responded that a future financing action would provide the opportunity to address those questions, adding that the programme had been considered in the rate model. Staff also said developer impact fees would finance part of the listed sewer projects.
Councilmember Rick Robinson described the financing measure as an example of the funding required when infrastructure maintenance has been deferred while a city continues to grow. Moya said the projects would be built over many years, though no timetable was presented for a future financing request.
This summary was generated by AI based on the source document and may contain errors.
Source: City Council, City of Oceanside Water Utilities Department