SAN DIEGO -- Does your water smell or taste funny? A new chemical cleanup is under way in San Diego, and people are noticing it.

"The water now coming out of my sink smells like bleach -- (it) doesn't taste that great," said San Diego resident Guiou Davis.

The city is treating drinking water to remove a type of bacteria called biofilm. The treatment and the bacteria are not harmful.

According to the city attorney, this process to clean up the water probably wouldn't be happening if the city had improved treatment plants.

It wasn't done before because of money. San Diego used to get money from selling bonds, but not now because the city's financial crisis is stalling projects.

"We have curtailed a number over the last year in anticipation of not receiving funding," said water department Director Charles Yackly.

Four years ago, the city received a strong warning from the state Department of Health, which was "deeply concerned" about the water situation. A regulator pointed out, "it is a health and safety matter when critical drinking water projects are stopped."

"You would think they would put that first -- people's health first. We all need water to drink," said water customer Sonja Walls.

Thursday, City Attorney Mike Aguirre met with top leaders in the mayor's office, the Water Department and the state Department of Health.

They expect the price tag for upgrading the city's three treatment plants will be roughly $300 million.

Because they can't sell bonds, they may look into private loans and will also consider raising residents' water bills.