San Dieguito WD advances code overhaul to enforce commercial turf ban, restructure capital reserves

San Dieguito WD advances code overhaul to enforce commercial turf ban, restructure capital reservesThe proposed administrative update separates long-term joint facilities from regular capital reserves and establishes new penalties for water theft, aligning the district with current state conservation mandates.

A new state mandate will ban the use of potable water for irrigating "nonfunctional turf" on commercial, HOA, and government properties.

The district is revising its reserve policy to separate long-term capital projects, such as Lake Hodges dam improvements, from standard capital reserves to prevent target inflation.

New provisions ensure the district can recover costs and penalties for unauthorized water use, closing previous billing loopholes.

A $484 fee will be introduced for customer appeals to prevent general ratepayers from subsidizing individual dispute costs.

The San Dieguito Water District board reviewed proposed revisions to its administrative code during a special meeting on August 19, 2026, marking the first major update to the governing document since 2020. The proposed changes focus heavily on state regulatory compliance, financial restructuring, and closing loopholes related to water theft. A significant addition to the code is the implementation of a state-mandated ban on irrigating "nonfunctional turf" with potable water. The restriction applies to commercial properties, homeowners' associations (HOAs), and municipal sites, though single-family residential homes remain exempt. Finance Manager Aguilar noted that district staff are currently developing an outreach campaign and web page to notify affected customer classes before enforcement begins. Financially, the district is restructuring its reserve policy to better manage long-term infrastructure costs. Currently, annual allocations for long-term projects—such as the Lake Hodges dam and joint facilities with the Santa Fe Irrigation District—are artificially inflating the district's regular capital reserve targets. The code update will separate these long-term initiatives into a distinct category. The revisions also codify that meter capacity or buy-in fees must only be spent on capital improvements to the water system, never on operating costs. The district is also tightening its billing regulations to address unauthorized water use. The updated code explicitly states that property owners will be billed for illegal tapping or connecting to another source for water service. Crucially, the district is adding language to ensure it retains the right to recover all costs and penalties even if it initially fails to notice the water theft. To further protect ratepayers, a new $484 fee will be implemented for customer appeals. The fee, which mirrors the city's existing appeal charge, is designed to recover staff and legal costs, ensuring that general ratepayers do not subsidize individual dispute proceedings. Other updates include aligning the district's cross-connection and backflow prevention rules with the state's latest policy handbook and formally incorporating the 2026 Water Shortage Contingency Plan. The board is expected to vote on the final adoption of the revised administrative code in September.