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Staff reported Greater Kaweah GSA is discussing ending overdraft allocations by 2027 and raised concerns about allowing native safe-yield transfers across the GSA. Staff discussed record El Niño indicators and urged growers to prepare fields for potential winter water. The board discussed a 3-year managed IT/cybersecurity services proposal with Grapevine MSP.

Staff reported a balanced 2027 budget requiring no rate increase and highlighted a bond refunding projected to save ratepayers over $7.7 million (NPV). Transmission & Distribution capital of $33.7 million was presented (down $1.9 million), with ~1,200 new meter sets forecast. Power supply costs were lower: purchase power down ~1% and fuel down ~21% vs. 2026.

Groundwater sustainability fees were approved for FY 2026-27 at roughly 55% below maximum rates; the agricultural combined rate is $44.44 per groundwater-irrigated acre. Growers who missed alternative-water or dry-farming deadlines can apply again next year, but documentation will tighten. Board members discussed well metering as a possible long-term path toward usage-based fees.

Staff reported the board is exploring replacing tiered overdraft allocations with purchased supplemental water from ditch companies. About $9M in penalties remain outstanding (about $900K liened), and staff discussed possibly shifting future bills to property tax rolls. The board discussed tier pricing and the penalty rate; staff said these may need action next month for an Oct. 1 effective date.

The board approved raising the per-acre groundwater assessment from $1.50 to $2.00 for 2027, citing anticipated consulting costs tied to the updated sustainability plan. Staff reported the State Board discussed a possible pumping moratorium along the Friant-Kern Canal as early as April of next year, framed as a starting offer tied to subsidence concerns. The board formally set aside existing allocation and new-well policies following litigation, with revised drafts expected in two weeks.