San Agito Water District adopts midyear FY26 budget amendments; board hears reserve shortfalls and vehicle outfitting request
February 19, 2026 | Encinitas, San Diego County, California
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San Agito Water District finance staff presented a midyear FY26 financial report and the board unanimously adopted Resolution 2026-02 to amend the budget. Finance Manager Aguilar told the board the district has received about 52% of its budgeted revenue to date, or $13,200,000.
The presentation laid out the largest revenue categories and current spending. Aguilar said potable water sales are at roughly 47% of budget and potable meter service charges at 57%. She noted capacity fees appear 484% over budget but represent only about 5% of total revenue. On expenditures, Aguilar said the district is under budget overall at 47%, with capital improvement project (CIP) spending at roughly $1,500,000 to date and personnel spending at about 54%.
Aguilar said the district is below target on its capital improvement reserve and currently has no funds set aside for rate stabilization. "We are below target in our capital improvement reserve and currently have no money available to set aside for rate stabilization," she told the board. When asked for amounts, Aguilar reported the capital replacement reserve is short $4,200,000 and the rate stabilization reserve is short $3,300,000 relative to policy targets.
Staff also described a request to increase the budget to fully outfit a previously approved valve truck. The original budgeted $93,000 covered the vehicle chassis but did not include outfitting costs such as a valve exercising machine and specialized bed; staff asked for an increase to cover those additional costs. Aguilar explained the purpose of a valve exercising truck as a proactive maintenance tool to ensure valves can be isolated quickly during main breaks and other emergencies.
On treatment costs, Aguilar said a $30,000 increase is requested to align the district's budget with Santa Fe Irrigation District's finalized budget for the shared Badger treatment plant. She described the difference as a timing and estimation issue: the district budget was built on preliminary figures while Santa Fe finalized its numbers after the district adopted its preliminary budget.
The recommended fiscal actions included several transfers between CIP projects (net-zero in some cases), a cleanup to increase budgeted revenue tied to an infrastructure access pass-through after a prior prepayment to the water authority, recognition of auction revenue from sold vehicles, the $30,000 treatment-cost increase, and the additional valve truck outfitting funds. "The recommended actions are to receive and file the midyear report for FY26 and to adopt Resolution 2026-02 amending our budget," Aguilar said.
During questioning, board members pressed staff for clarification on the near‑50% spend rates and the infrastructure access charge timing; Aguilar and others explained the discrepancy stems from a one‑time prepayment and differences between the district's fiscal year and the water authority's calendar year. The board also heard that a consultant was recently engaged to review the district's reserve policy and advise on how to account for pass-throughs and large, long‑term liabilities such as Lake Hodges-related costs.
A motion to receive the midyear report and adopt the budget amendment was made and seconded; the board voted and the motion carried unanimously. The transcript records the vote as unanimous and the clerk noted all board members were present for the roll call.
In related business, General Manager (name given in the transcript as general manager) reported that the City of San Diego began releasing water from Lake Hodges after recent rains; he said the lake level was 278.5 feet and that the Department of Safety of Dams had imposed a restricted level of 280 feet. The general manager also announced a free native-plant and waterwise landscaping workshop on March 14 and youth poster/landscape contests with submission dates in April and May.
The board received the midyear report, adopted Resolution 2026-02 to amend the FY26 budget, and adjourned the meeting.
The presentation laid out the largest revenue categories and current spending. Aguilar said potable water sales are at roughly 47% of budget and potable meter service charges at 57%. She noted capacity fees appear 484% over budget but represent only about 5% of total revenue. On expenditures, Aguilar said the district is under budget overall at 47%, with capital improvement project (CIP) spending at roughly $1,500,000 to date and personnel spending at about 54%.
Aguilar said the district is below target on its capital improvement reserve and currently has no funds set aside for rate stabilization. "We are below target in our capital improvement reserve and currently have no money available to set aside for rate stabilization," she told the board. When asked for amounts, Aguilar reported the capital replacement reserve is short $4,200,000 and the rate stabilization reserve is short $3,300,000 relative to policy targets.
Staff also described a request to increase the budget to fully outfit a previously approved valve truck. The original budgeted $93,000 covered the vehicle chassis but did not include outfitting costs such as a valve exercising machine and specialized bed; staff asked for an increase to cover those additional costs. Aguilar explained the purpose of a valve exercising truck as a proactive maintenance tool to ensure valves can be isolated quickly during main breaks and other emergencies.
On treatment costs, Aguilar said a $30,000 increase is requested to align the district's budget with Santa Fe Irrigation District's finalized budget for the shared Badger treatment plant. She described the difference as a timing and estimation issue: the district budget was built on preliminary figures while Santa Fe finalized its numbers after the district adopted its preliminary budget.
The recommended fiscal actions included several transfers between CIP projects (net-zero in some cases), a cleanup to increase budgeted revenue tied to an infrastructure access pass-through after a prior prepayment to the water authority, recognition of auction revenue from sold vehicles, the $30,000 treatment-cost increase, and the additional valve truck outfitting funds. "The recommended actions are to receive and file the midyear report for FY26 and to adopt Resolution 2026-02 amending our budget," Aguilar said.
During questioning, board members pressed staff for clarification on the near‑50% spend rates and the infrastructure access charge timing; Aguilar and others explained the discrepancy stems from a one‑time prepayment and differences between the district's fiscal year and the water authority's calendar year. The board also heard that a consultant was recently engaged to review the district's reserve policy and advise on how to account for pass-throughs and large, long‑term liabilities such as Lake Hodges-related costs.
A motion to receive the midyear report and adopt the budget amendment was made and seconded; the board voted and the motion carried unanimously. The transcript records the vote as unanimous and the clerk noted all board members were present for the roll call.
In related business, General Manager (name given in the transcript as general manager) reported that the City of San Diego began releasing water from Lake Hodges after recent rains; he said the lake level was 278.5 feet and that the Department of Safety of Dams had imposed a restricted level of 280 feet. The general manager also announced a free native-plant and waterwise landscaping workshop on March 14 and youth poster/landscape contests with submission dates in April and May.
The board received the midyear report, adopted Resolution 2026-02 to amend the FY26 budget, and adjourned the meeting.
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