Faced with rising costs, the Del Mar City Council will discuss options to finance the citywide utility undergrounding project during its Nov. 18 meeting.

The city’s Undergrounding Program Advisory Committee and Finance Committee both recommended analysis and consideration of financing.

Del Mar voters approved Measure Q, a half-cent sales tax, in 2016 for infrastructure projects such as undergrounding. But with a total estimated cost that now exceeds $100 million, which is more than double a previous estimate, the city has been trying to figure out a course of action to complete the long-awaited project.

According to city staff, inflation and other factors could drive the total cost to more than $200 million over time.

In addition to financing options, the city is also considering a “pay as you go” model that would avoid financing. The length of the project is expected to be about 20 to 35 years, depending on the funding strategy.

“With significant changes to the City’s understanding of timing and costs for the Undergrounding Program, it is important for residents to get informed and share their thoughts and ideas about how the City should proceed,” according to an announcement from the city. “This is by far one of the largest and most expensive capital projects the City will ever undertake, and community awareness and input are essential.”

According to city staff, the city’s Measure Q fund is on pace to have a $500,000 balance by the end of the 2024-25 fiscal year in June, which would not be enough to proceed with the next undergrounding district.

So far the city has completed an undergrounding pilot project at Tewa Court and 10th Street. Construction has started along District 1A, located along Stratford Court South, with an estimated August 2025 completion date.

Construction on District X1A, located by Crest Canyon, is scheduled to begin next spring.