The board voted to increase sustainability agency fees for fiscal year 2026-27 to the maximum level permitted under the previously approved Proposition 218 process. This decision was driven by a projected (worst‑case) budget deficit of about $500,000 for the upcoming fiscal year, largely due to unknown costs in well mitigation and demand management programs, combined with the loss of grant funding. The board preferred a single increase now over a gradual approach, aiming to reduce the likelihood of needing a new Prop 218 process later; members discussed prior 218 process costs as rough recollections/guesses (estimates ranged roughly $60,000–$100,000). Cash reserves of approximately $658,000 will help absorb the shortfall, but reserves could drop to roughly $195,000 if all projected expenses materialize.
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