Staff presented a proposed FY2027 budget of ~$1.282B; rates are lower than last year's projection due to the paused Pacheco Reservoir expansion. Anderson Dam seismic retrofit may be awarded in summer 2026, with capital spending rising. WIFIA timing is uncertain; interim notes were outlined as a bridge. A separate $106M WIFIA loan for Safe Clean Water projects has also been postponed indefinitely. CIP hearing continues to May 12, 2026 for closure; budget adoption is planned for May 12, 2026.
Groundwater production charges are proposed to increase 6.6%–9.4% by zone for FY 2026-27; in response to a board question, staff said 10-year projections could roughly double. Key pressures include major capital projects (e.g., Anderson Dam, Pure Water Silicon Valley, regional projects) and inflation. SWP south-of-Delta allocation stays 30%. Final vote May 12.
Staff reviewed options to increase San Pedro Ponds recharge (capacity 4,700 AFY but currently less than 500 AFY) limited by nearby septic systems. FY2025 conservation savings were 87,392 AF (near 90% of the 2030 target), but annual gains slowed; staff will update the model/plan via an RFP. Members discussed the need for better data on large commercial/industrial water use (including data centers) to inform future policy discussions.
Staff recommended a FY 2026-27 ag groundwater rate of $46.50/AF, supported by an ~$16M open space credit covering 90%+ of full cost. South County Zone W5/W7/W8 charges are proposed to rise 6.6%–9.4%, driven by capital projects including the Anderson Dam seismic retrofit. No vote was taken; the public hearing was continued to April 28, 2026.
Staff recommended project that would create ~1,800 acres of tidal marsh in lower South San Francisco Bay, with modeling showing no increased flood risk along nearby creek corridors. The committee received an update on a previously approved $3.95 million grant supporting Peninsula Open Space Trust's permanent protection of 5,254 acres at Sargent Ranch. Staff noted snowpack is well below normal, though current stored supplies are sufficient to avoid drought this year.
