Fiscal Year (FY) 2027 Fee

Fee Timeline

  • On March 12, 2026, the SVBGSA Board of Directors (Board) received and provided input on the FY 2027 Draft Budget and Groundwater Sustainability Fee (Fee) Approach.
  • On April 9, 2026, the Board:
    • Approved the FY 2027 Budget
    • Discussed the projected FY 2027 Fee and provided additional direction regarding Tier 2 allocation methodology and the treatment of staff costs.
  • On May 14, 2026, the Board reviewed and provided input on the FY 2027 proposed fees.
  • On July 9, 2026, the Board held a public hearing and adopted Resolutions 2026-04, 2026-05, 2026-06, 2026-07, 2026-08, 2026-09 and 2026-10 setting the Groundwater Sustainability Fees for FY 2027.

Fee Background

The Fee is a regulatory fee adopted by the SVBGSA to fund implementation of the Groundwater Sustainability Plans (GSPs) in compliance with the Sustainable Groundwater Management Act (SGMA). The Fee is structured into two tiers. Tier 1 Fee funds basin-wide regulatory activities that apply across all subbasins, including administration, reporting, and shared technical work. Tier 2 Fee funds subbasin-specific or targeted implementation activities, including project development, demand management, seawater intrusion response, and Integrated Implementation Strategy (IIS) activities.

As reflected in the FY 2027 Work Plan and Budget, SVBGSA continues transitioning from planning and compliance activities toward implementation-focused work. This transition results in a greater portion of activities being associated with specific subbasins, implementation pathways, and regulatory needs. At the April 9, 2026 Board meeting, the Board provided direction to further refine the projected Fee and evaluate allocation of a portion of staff costs to Tier 2 activities. In response to Board input, the updated projected Fee reflects the following revisions:

  • Allocation of Executive staff costs between Tier 1 and Tier 2 based on the distribution of FY 2027 programmatic expenditures
  • Refinement and clarification of Tier 2 allocation rationale and methodology to further support consistency with Proposition 26 requirements

Historically, all staff costs were allocated to Tier 1. The updated approach recognizes that a significant portion of Executive staff time is increasingly devoted to implementation-focused activities associated with specific subbasins, including project development, integrated implementation strategy efforts, stakeholder coordination, and program management. The revised approach allocates a portion of Executive staff costs to Tier 2 while retaining basin-wide oversight functions in Tier 1. The updated Tier 2 methodology continues to apply the following allocation principles:

  • Direct allocation where activities are attributable to a single subbasin
  • Equal allocation where multiple subbasins receive comparable benefit
  • Proportional allocation where measurable cost drivers exist, such as cropped acreage
  • Weighted allocation where implementation pathways and anticipated reliance on projects versus demand management differ among subbasins
  • The updated Fee projection also incorporates the rationale and methodology memorandum prepared to document consistency with Proposition 26 requirements, including cost-of service principles, reasonable allocation methodologies, and transparency in fee structure.

For more information on the rationale and methodology for the FY 2027 Tier 2 Fee, click here to view the staff memorandum.

FY 2027 Fee Chart

Total Fee FY 2027
Category Fund 111 Eastside Fund 112 Langley Fund 113 Forebay Fund 114 Monterey Fund 115 180/400 Fund 116 Upper Valley
Agriculture (per acre annually) $20.48 $15.08 $14.40 $39.25 $27.66 $14.51
Domestic (per connection annually) $8.12 $21.65 $6.12 $22.76 $12.23 $6.16

The methodology for calculating the Groundwater Sustainability Fee (Fee) was first established in 2019 and most recently adjusted in Spring of 2025.

The Fee calculation comprises the following steps:

Step 1: Determine the amount of revenue needed to be raised in the next fiscal year through the regulatory fee – the “cost basis”. Allocate the cost basis between Agricultural and All Other beneficiaries of sustainable groundwater management. Agricultural beneficiaries are allocated 90% of the cost basis. All Other beneficiaries are allocated 10% of the cost basis.

Step 2: Determine the number of Irrigated Acres/Cropped Acres and Service Connections in the SVBGSA subbasins to be charged the fee in the next fiscal year. Note: The SVBGSA Board of Directors decided to change the basis for fee calculation from Irrigated Acres to Cropped Acres in FY 2026. For FY 2027 the most current dataset is from water year (WY) 2024. 

Step 3: Divide the Agricultural beneficiaries’ cost basis by the number of Irrigated Acres/Cropped Acres to calculate the annual Fee per acre. Divide the “All Other” beneficiaries’ cost basis by the number of Service Connections to calculate the annual fee per connection.

Cropped Acres: Acres of real property identified as either Cropped (land use codes C, D, F, G, P, R, T, UL, V, or YP), Unclassified (land use code X – did not grow a crop in the reported water year), or Idle (land use code I – cropped within the prior 3 years or idle for 4 or more consecutive years), by the California Department of Water Resources using the most recently released publicly available crop mapping dataset.

Connection: A connection between the customer’s piping or constructed conveyance and the water system’s meter, service pipe, or constructed conveyance. A property can have more than one service connection. Connections are counted for Public Water Systems (15 or more connections or regularly serves 25 or more people daily for at least 60 days out of the year) and Small Water Systems (2-14 connections).

The Salinas Valley Basin Groundwater Sustainability Agency (SVBGSA) Groundwater Sustainability Fee (Fee) was first adopted in March 2019 based on a fee study report developed by Hansford Economic Consulting (HEC) after seeking input from numerous public meetings and workshops. In 2023, the SVBGSA Board of Directors commissioned a new fee study, exploring a tiered Fee structure. The process comprised a broad stakeholder engagement and concluded with a final report that was accepted by the Board on June 29, 2023.

SVBGSA is the local Groundwater Sustainability Agency (GSA) in the Salinas Valley Basin responsible for sustainably managing groundwater resources. SVBGSA has the authority to charge fees, conduct investigations, register wells, require reporting, and take other actions to sustainably manage six of the hydrographic subbasins in the Salinas Valley: (1) Monterey, (2) 180-400-Foot, (3) Eastside, (4) Forebay, (5) Langley, and (6) Upper Valley.

These types of activities all constitute the Sustainable Groundwater Management Program of the SVBGSA. By actively planning for and implementing sustainable groundwater management plans in the subbasins, SVBGSA helps maintain local management of groundwater in the Salinas Valley.

The Groundwater Sustainability Fee is paid by groundwater users within the SVBGSA jurisdictional boundaries. For imposing the Fee purpose, a groundwater user is defined as an owner of agricultural land or a water user served by a publicly or privately owned water system. De minimis extractors, tribal lands, and federally owned properties are exempt from the Fee.

Each year, the Board reviews the Fee to determine if the revenue collected from the Fee is sufficient to cover expenses, consistent with the California Constitution and state law. The Board may increase or decrease the Fee as necessary or appropriate. The cost basis of the Fee is determined during the budget-setting process and a public hearing is held for any proposed changes to the Fee.

Pursuant to the Tiered Regulatory Fee Policy (amended June 29, 2023), the annual budget is developed commensurate with the annual work plan to achieve SGMA compliance, to conduct investigations and studies, to monitor data, to register and monitor wells and to obtain legal, financial, accounting, technical, engineering, and other services to carry out the regulatory activities of the Salinas Valley Basin Groundwater Sustainability Agency (SVBGSA).

Tier 1 funded tasks are common to or are required by all subbasins. Tier 2 funded tasks pertain to or are necessitated by only one or more, but not all subbasins.

The majority of the Fees (approximately 95%) are collected with property taxes: the County collects the Fees on the tax roll together with property taxes and disburses the fee revenue to SVBGSA.

The Salinas Valley Basin Groundwater Sustainability Agency fees will not include the cost of data collection by the WRA covered by the GMP fee. 

The Groundwater Sustainability Fee does not include the cost of data collection by the MCWRA covered by the GMP Fee.

Fee Map Notes

The map currently displays the Fee by parcel for FY 2026. FY 2027 data will be made available by October 2026.

A parcel within the Salinas Valley Basin GSA may not be imposed a fee in FY 2026 for any of the following reasons:

  • The parcel is exempt. Federally owned parcels, and parcels held in trust by the federal government for tribes are exempt under SGMA.
  • The parcel is served by a domestic well and is not growing a crop for commercial sale or irrigating large areas of landscape.
  • The parcel is undergoing change with the County Assessor (for example, it is being split or merged).
  • The parcel did not contain crop land in Water Year 2023.
  • The parcel is vacant or does not use water for domestic purposes.
  • The parcel is served by a public water system that pays the fee for all its customers (such as the City of Soledad).

The best available data from the State Water Resources Control Board is used to show public water system boundaries; this may not provide an accurate depiction of assessor parcels served by public water systems. When entering your APN into the search bar, be sure to include dashes so that your parcel can be properly identified.

Fiscal Year 2026 Fee

On April 10, 2025, the SVBGSA Board of Directors (Board) approved the FY 2026 budget. On May 8, 2025, the Board held a public hearing to hear public testimony and consider adopting resolutions setting the Fees for FY 2026. On June 12, 2025, the Board continued the public hearing and adopted resolutions setting the Fee for FY 2026.

180/400, Langley, Eastside, Monterey, Forebay, Upper Valley Subbasins

Fee Type Tier 1 Fee Tier 2 Fee Total Fee
Per Cropped Acre $13.83 $0.00 $13.83
Per Connection $5.32 $0.00 $5.32

Fiscal Year 2025 Fee

On April 11, 2024, the SVBGSA Board of Directors (Board) approved the 2025 budget and the FY 2025 approach. On May 9, 2024, the Board held a public hearing to hear public testimony and adopted resolutions setting the Fee for FY 2025.

Subbasin Tier 1 Fee Tier 2 Fee Total Fees
EASTSIDE
Per Irrigated Acre $9.11 $1.03 $10.14
Per Connection $4.26 $0.27 $4.53
LANGLEY
Per Irrigated Acre $9.11 $4.43 $13.54
Per Connection $4.26 $6.64 $10.90
FOREBAY
Per Irrigated Acre $9.11 $0.54 $9.65
Per Connection $4.26 $0.23 $4.49
MONTEREY
Per Irrigated Acre $9.11 $20.53 $29.64
Per Connection $4.26 $9.41 $13.67
180/400 FOOT
Per Irrigated Acre $9.11 $2.62 $11.73
Per Connection $4.26 $1.21 $5.47
UPPER VALLEY
Per Irrigated Acre $9.11 $0.55 $9.65
Per Connection $4.16 $0.33 $4.49

Fiscal Year 2024 Fee

On April 24, 2023, the SVBGSA Board of Directors (Board) approved the FY 2024 Budget, accepted the Tiered Fee Technical Memorandum and received the Tiered Fee Preliminary Projections and Outreach Plan. On June 29, 2023, the Board held a public hearing to hear public testimony and adopted resolutions setting the Fee for FY 2024.

Subbasin Tier 1 Fee Tier 2 Fee Total Fees
EASTSIDE
Per Irrigated Acre $8.28 $2.96 $11.24
Per Connection $3.90 $0.64 $4.54
LANGLEY
Per Irrigated Acre $8.28 $12.86 $21.14
Per Connection $3.90 $10.86 $14.76
FOREBAY
Per Irrigated Acre $8.28 $3.40 $11.68
Per Connection $3.90 $1.32 $5.22
MONTEREY
Per Irrigated Acre $8.28 $34.96 $43.24
Per Connection $3.90 $17.26 $21.16
180/400 FOOT
Per Irrigated Acre $8.28 $4.48 $12.76
Per Connection $3.90 $1.32 $5.22
UPPER VALLEY
Per Irrigated Acre $8.28 $3.32 $11.60
Per Connection $3.90 $1.82 $5.72