Napa County groundwater agency adopts revised budget and scales back first‑year fees

The Napa County Groundwater Sustainability Agency (GSA) adopted its recommended budget for fiscal year 2026–27 on June 23, approving staff changes that reduce initial fee estimates and directing staff to return with final fee rates after collecting user data.

Auditor‑Controller staff told the Board that two supplemental adjustments were made to the GSA budget: a reduction in recognized state grant revenue to match reimbursable expenditures (about $250,000) and a decrease in charges for services from $2,168,000 to $931,000, drawing approximately $750,000 from the fund balance rather than overstating revenue. Staff said there were no changes to program expenditures.

"We decreased the state grants revenue ... to match the revenues to the expenditures," said Tracy Schulsey, auditor‑controller (staff presentation). Brian Bordona, staff, said the change aims to avoid inflating the year‑end fund balance and to smooth fee impacts on users.

Public commenters representing local growers and residents praised the fee revision while urging a transition to metering. "I think the only solution to using less water is for all of us to meter what we're using and pay for it," said Patricia Damry, a well user on Dry Creek Road. Industry representatives including Michelle Novie of Napa Valley Vintners and Peter Rumble of the Napa County Farm Bureau thanked staff for the revised approach and urged continued collaboration to keep program costs low.

Board members pressed staff for guidance on an appropriate fund balance and suggested using multi‑year averages to provide predictability for growers facing volatile first‑year bills. "What I don't want to happen is that say this year it's $98 per planted acre ... and then we go back up," Supervisor Ramos said, urging staff to develop guidance for a recommended reserve level.

Staff estimated the revised approach represents a 50–60% fee reduction for many users for FY 2026–27 and said they will recalculate fees after a July 10 deadline for user responses (to identify dry farming, vineyard removals and other changes). The board asked staff to return with a resolution on July 28 that identifies the final fees for the year.

The board adopted the GSA budget unanimously and directed staff to continue work on metering, water‑availability analysis guidelines, and program cost reductions where feasible. Several supervisors emphasized that achieving sustainable groundwater levels — and thereby lowering program costs — requires both reduced use and increased storage or recharge efforts.

Next steps: staff will analyze user feedback received by July 10, recalculate FY 2026–27 fees accordingly and present a final resolution with fee schedules to the board on July 28.