The board terminated the Ione water shortage emergency by adopting Resolution 2026-09. The FY 2026/27 budget was approved, including nearly $20M in water capital projects. The board reviewed the final draft capacity fee study and directed staff to begin notifications ahead of the scheduled July 9, 2026 adoption.
Board gave consensus direction to use Option 1 (system-wide) for proposed water capacity fees. Proposed fees discussed: wastewater $25,388/EDU, treated retail water $26,776/EMU, and treated wholesale water $21,085/EMU (all not yet adopted; public notice/approval required). Board also supported transferring Pine Grove cell-tower lease revenue to the County for park maintenance as part of the Pine Grove CSD reorganization (LAFCO) process.
LGI Homes received a water shortage exception for Castle Oaks Village 10 (54 connections; irrigation removed). The developer disputed the proposed $223,410 Water Demand Reduction Fund condition; the Board approved the exception while deferring the fund/payment issue to June. Staff updated on the February Ione Canal washout and Ione WTP backwash to City sewer.
The Board heard an update on the previously approved $31.3 million short-term financing strategy for critical water infrastructure projects, including treatment plant improvements and tank replacements. The FY26 mid-year budget presentation showed strong financial performance, enabling increased reserve funding with water policy reserves projected to reach 85% of target levels. Legal counsel clarified the final Eagles Nest reimbursement obligation at $66,514.08, which the Board directed ...
The Board directed staff to proceed with a 2026 four‑year short‑term note strategy to fund six critical infrastructure projects and to include refunding the 2016 bonds in the financing package. The structure maintains flexibility to coordinate with ongoing EPA WIFIA loan negotiations, which could later provide a long‑term takeout for the notes.
