Q&A

I have never seen a water pump or timing belt on a Toyota fail at 25k miles but a 2004 Solara 4 cylinder has a timing chain. The 3.3L V6 has a timing belt takes approx. 2.8 to 3h ours to replace.Water pump takes about 3 hours to 3.2 to replace on the V6.

Toyota recommends replacing timing belt of your model @ 90K miles or 6 years. Since water pump can be easily replaced with small additional work, some people recommend that you replace water pump too when you replace timing belt based on the assumption that the water pump will not last much longer. But in your case, I don't believe you need to replace water pump because the mileage on your car is low. It is likely that your water pump will last till the next timing belt replacement.
Your timing belt should be replaced per Toyota recommendation. But I think that you have at least one year before it becomes an urgent matter. Even if timing belt breaks before it can be replace, Toyota engines are non-interference. You won't get bent valves type of damage.
The timing belt itself costs around $40. Depending where you get it done, the total cost can vary from $150 to $500.

You're getting ripped off...find someone else to do the inspection if they won't pass the car. Don't tell them what this crook said. By the way if true check with Toyota as they may have a "secret warranty" on this problem and will fix it for free. If this does turn out to be a rip off ... make sure to turn in the repair shop who refused to pay your car for the timing belt and water pump.