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A Closer Look at SGMA Fees March 6, 2024

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Editor’s note and unrelated to this story: Tomorrow is the Water Association of Kern County’s annual Water Summit in Bakersfield. You do not want to miss it.

By Dusty Ference

During the February meeting of the Mid Kings River Groundwater Sustainability Agency (MKRGSA), the GSA’s board of directors approved a Proposition 218 fee study. This action marked the first Prop. 218 election for the MKRGSA since SGMA was adopted. Approving the study is the first step in the Prop. 218 election process before land owners in the district vote on the proposed assessment.Brandt Water Treatment

The approved fee study includes a detailed budget outlining proposed expenses for administration, operations, reserves, the dry well mitigation program, recharge basin development, and subsidence mitigation.

For 2024, the estimated budget is $11.5 million, and for years 2025 through 2028, the GSA estimates an approximate budget of $11.3 million annually.Lidco Inc.

Funding for the proposed budget will come from two fee categories. The first is a per-acre assessment that will be collected with property taxes. The fee study states that the GSA proposes an assessment of up to $25 per acre annually. The second category is a groundwater pumping fee. Pumping fees will be charged based on which aquifer a landowner chooses to pump from. Under the current proposal, pumping from the A and B Zone aquifers could cost up to $95 per acre-foot per year. While pumping from the C Zone or below the Corcoran Clay could cost as much as $35 per acre-foot per year. Additionally, landowners that exceed the pumping cap determined by the MKRGSA are subject to an exceedance penalty of up to $500 per acre-foot.TechnoFlo

It is essential to highlight that the MKRGSA board of directors sets fee rates yearly. However, voters determine the maximum allowable fees as part of the Proposition 218 Election. The reason for the two funding categories is determined by State law. Any district charging an assessment is limited to using those fees to fund administration, operation, and funding reserves. In the case of any Groundwater Sustainability Agency assessments, they cannot be used to fund special projects. In this case, a portion of the pumping fees paid to a GSA may apply to operations costs, and the GSA will use the remaining to fund projects such as a well mitigation fund, development of recharge basins, and subsidence mitigation efforts.

Per State law, the MKRGSA has scheduled a public hearing for the proposed fees on April 23, 2024. Ballots will be counted at this hearing, and MKRGSA will announce the results. This type of election is determined by the number of protest votes, meaning if a majority of property owners submit protests, the GSA may not adopt the fees.

Hearing notices must be mailed to all affected landowners at least 45 days before. During the February board meeting, staff of the MKRGSA reported proposed informational meetings they intend to host before the April 23 public hearing. These meetings will be an excellent opportunity for landowners to learn more about the MKRGSA budget and plans for the future.

In 2018, landowners in the South Fork Kings Groundwater Sustainability (SFKGSA) approved a Prop 218 Election that ended in 2023. Since June 2023, the SFKGSA has proposed three Prop 218 Elections to continue funding the GSA. On February 29, the GSA held a public hearing on its third attempt to pass a new assessment. Voters of that GSA approved an annual assessment of $9.80 per acre. During that meeting, the directors of the GSA stated that an assessment of $9.80 per acre is a starting point and funds only basic administration of the agency.

The SFKGSA held a Special Meeting of the Board of Directors after the public hearing. The agenda included an action item approving a master service agreement between the SFKGA and the Kings River Conservation District (KRCD) authorizing the management of the administrative needs of the SFKGSA on an interim basis. The need for interim management is a result of the board’s decision to place the GSA’s General Manager on administrative leave earlier this year.

The SFKGSA board of directors also received an engineering report highlighting possible groundwater sustainability plan (GSP) updates. The board will consider GSP updates for consideration by the SWRCB during its March 14th meeting.

Dusty Ference is the Executive Director of the Kings County Farm Bureau. 

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