A groundwater extraction fee of ~$22.28 per acre-foot is moving toward potential adoption for FY 2026-2027. The fee report must be published by May 7, and adoption could be considered at the May 27 meeting. The fee methodology now uses a water year (Oct–Sep) and charges only on ET of applied water, with a 5% appeals allowance built in. Staff also reported strong early enrollment in the newly launched fallowed land registry, which offers growers key protections.
A $1.095M bare-minimum compliance budget was unanimously approved for FY 2026-2027. The board gave consensus direction to develop a Prop 26 volumetric fee ($20–$30/AF) using 2025 LandIQ ag ET data, aiming for a May 27 public meeting/adoption timeline. The WY2025 Annual Report was approved; three Alpamar wells remain below minimum thresholds two+ years, and LandIQ lowered estimated ag extraction by ~15,000 AF.
The board unanimously directed staff to pursue a Proposition 26 funding approach for the FY 2026-27 budget after the prior Prop 218 assessment failed, which would allow fees to be set annually without a landowner protest process. The agency is targeting a bare-bones compliance budget, and staff was directed to develop informal mechanisms such as public workshops for regular stakeholder feedback.
The board approved a reduced $944,952 budget through June 2026 focused on minimum SGMA compliance while acknowledging the need to develop long‑term funding. Staff reviewed the SGMA timeline, noting the basin is roughly 30% of the way through the implementation period and that state intervention could cost about $1.7M per year. Directors discussed, but did not decide on, possible board expansion and a stakeholder advisory body.
The board appointed Hallmark Group as Executive Director through June 2026 following leadership changes, while a regional stakeholder group recommended creating an entirely new governance entity due to "loss of trust" and structural limitations. The authority continues facing a funding crisis with no long-term financial mechanism beyond 2026 after the failed assessment election, though some member agencies indicated they could support operations through the current contract period.
