The district's 2025 audit received a clean opinion, but irrigation operations show a ~$4M annual loss, prompting discussion of future rate and non-rate revenue options. An ~$800K fraudulent disbursement tied to a vendor bank info change led to strengthened internal controls. The board discussed a dual-engine vacuum truck (~$806K) amid upcoming CARB regulation changes; no purchase was approved.
The board approved a 2027 irrigation rate increase, setting fixed charges at $65/acre and volumetric rates at $10.75–$18.25/acre-foot. A motion to freeze volumetric rates at 2026 levels was also approved (3–2), though the final staff-recommended rate schedule then passed (4–1). An emergency water conveyance agreement for Circle JM was ratified, capped at 100 acre-feet over six weeks. The board also authorized a ~$4M flow meter program.
The board adopted the 2025 Urban Water Management Plan, projecting sufficient supplies in normal years through 2050 but potential shortfalls up to 26% in dry-year scenarios. Demand is projected to rise about 86% by 2050, and SSJID is urging cities to consider accelerating Phase Two as early as 2032, though no city has committed. Uncertainty remains around SGMA and Bay-Delta Plan amendment implementation.
The board approved redirecting a pump motor rebuild to the original contractor, with return to service expected in October and no impact to current delivery capacity. Staff reported receiving a $2M federal grant covering half of a $4M flow measurement modernization project. Directors praised field staff for maintaining smooth water deliveries amid volatile weather swings, including temperatures exceeding 100°F.
The spray-cast pipelining program set a production record, lining ~15,500 feet of canal at $84/ft — under the $104/ft budget — with the K-lines from Santa Fe to Escalon targeted next season. The water treatment plant received a CO₂ force majeure notice and is testing sodium hydroxide as an alternative for pH control. Directors thanked crews for managing a difficult irrigation season and noted water clarity improvements from Magneside treatment.
