1. Budget Assumptions for Fiscal Year 2027 Introduce Tier 1 Fee Collection for Uncertain Project Work
Staff proposed collecting certain future project costs through Tier 1 fees (valley-wide) despite those costs potentially being project-specific. This is due to uncertainty around which projects will be selected through the Integrated Implementation Strategy process happening summer 2026. The plan is to collect these fees now and potentially reconcile them later as Tier 2 (sub-basin specific) fees once projects are determined. A public commenter raised concerns about Proposition 26 compliance regarding collecting fees for one purpose and using them for another.
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