Title
Consider recommending the Board of Supervisors consider a Groundwater Monitoring Program Regulatory Fee Stabilization Policy.
Report
RECOMMENDATION:
It is recommended that the Board of Directors:
Recommend the Board of Supervisors consider a Groundwater Monitoring Program Regulatory Fee Stabilization Policy.
SUMMARY/DISCUSSION:
The Finance & Administration Committee was presented the proposed Groundwater Monitoring Program (GMP) Regulatory Fee Stabilization Policy at the September 11, 2026, meeting. The FAC Report, example Attachments, and draft Policy are included in this package for your convenience. The FAC raised three policy questions for further consideration:
First, the FAC discussed whether interest earnings from the reserve funds should accumulate, rather than be sown back into the GMP as an alternative revenue source, until such time that the program costs could be sustained by interest earnings instead of well owner fees.
Staff supports the principle of reinvesting reserves but recommends additional research before deciding. Financial reserves are the foundation of resilience for public water agencies. They help moderate rate volatility, weather economic downturns, and prepare for emergencies and capital needs. Issues requiring further consideration include, how to develop and implement best investment management practices, including liquidity management, asset-liability matching, and duration strategies, within the range of allowable investment options under County policies and California’s legal framework. Ultimately, the question is, “how can the Agency optimize reserve portfolios based on unique cash flow needs while maintaining the balance of safety, liquidity, and yield?” Examining this question will take time. In the meantime, staff recommends interest earnings be retained at least until the proposed reserve funds are accumulated, or while the broader question is considered.
Second, the FAC discussed whether the Agency shoul...
Click here for full text