District is in a solid financial position at mid-year, with $22.3M in total revenue (45% of budget) and $51.9M in reserves. Renovation of the desalination plant is actively underway, with large equipment now visible on-site and major work expected to shift from the beach to the plant by mid-April. The recycled water fund currently shows a negative balance, though 23 new connections are anticipated to improve its outlook.
The committee discussed a budget amendment request to cover a director's conference attendance costs, but ruled out transferring unused funds between directors due to policy concerns. Instead, the committee discussed forwarding a recommendation that the full board vote on increasing the conference and training line item from $10,000 to approximately $22,000 for the current fiscal year. Draft minutes from the prior meeting were approved unanimously.
The Board voted 3-2 to direct its president to cast the district's LAFCO vote for Jonathan Ahmadi as special district representative. The Board also entered closed session for the General Manager's performance evaluation and to consider goals for the position. The consent calendar, including the January 2026 check register and two sets of minutes, was approved unanimously.
The District is continuing to pursue grant funding for smart water meters that could in the future let customers monitor usage and receive automatic leak alerts online. Current meters already flag 24-hour continuous flow for proactive customer notification, helping identify issues such as an estimated 600-gallon leak at an unoccupied facility. Public outreach showed strong engagement, including 26,000 views on a New Year's message and a new theater conservation ad.
The district's mid-year financial report showed strong performance with $3.7 million in net revenue and a significant 106% increase in capital improvement spending, with 61% of the CIP budget now spent or encumbered. Water and sewer sales are on target at 53% of budget, while development activity is 21% below prior year but expected to pick up as projects like Marina Station and other planned connections move forward.
