TO: Napa County Groundwater Sustainability Agency
FROM: Brian D. Bordona, Director of Planning, Building and Environmental Services
REPORT BY: Jamison Crosby, Natural Resources Conservation Manager
SUBJECT: Levy and Collection of Fees for Fiscal Year 2026-27 for the Groundwater Sustainability Agency.
RECOMMENDATION
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Adopt a Resolution of the Napa County Groundwater Sustainability Agency temporarily reducing fees for Fiscal Year 2026-27 and authorizing levy and collection of the fees on property tax bills. (Fiscal Impact: $752,350 Revenue; Groundwater Sustainability Agency Fund; Budgeted; Discretionary)
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BACKGROUND
On December 9, 2025, the Board of Directors of the Napa County Groundwater Sustainability Agency (NCGSA) adopted Resolution 2025-05, establishing a Groundwater Sustainability Fee (Fee) in the Napa Valley Subbasin, as authorized by California Water Code § 10730, to support implementation of the Groundwater Sustainability Plan (GSP). The Fee methodology is documented in the Napa County Groundwater Sustainability Agency Rate and Fee Study (Fee Study), prepared by SCI Consulting Group (SCI)
The Fee Study apportions costs to three groundwater user classes based on the average percentage of pumping within each user class from 2019 to 2024: 1) agricultural groundwater users, 2) self-supplied groundwater users (largely domestic groundwater users), and 3) public water system (PWS) groundwater users. Costs are designated as either “Common Costs,” which provide benefit broadly to all groundwater users, or “Applied Groundwater Use Costs,” which provide a heightened benefit to agricultural and water system groundwater users. The Fee Study demonstrates that the Fee is not a tax, that the amount charged is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated bears a fair and reasonable relationship to each payor’s burdens on, or benefits received from, the governmental activity.
The Fee Study established the following rates by user class:
User Class / Charge Type Rate Basis
Agricultural User Base Rate $38.58 per planted acre
Agricultural User Additional Rate $60.16 per GW-irrigated acre
Agricultural User Combined Rate $98.74 per planted acre (total)
Self-Supplied User Rate $62.58 per parcel
Public Water System User Rate $129.87 per AF
Following adoption of Resolution 2025-05, staff conducted direct outreach to groundwater users and worked with the Assessor’s office to refine planted acreage, groundwater-irrigated acreage, and self-supplied parcel identification on a parcel scale in preparation for the Fiscal Year 2026-27 levy.
Fiscal Year 2026-27 Fee Rates
On June 23, 2026, the Board approved contributing $750,000 from NCGSA’s fund balance to reduce the Fee rates for Fiscal Year 2026-27. This contribution reduces the revenue requirement allocated to all user classes and lowers the rates charged in the first year of the Fee program, providing financial relief to groundwater users while maintaining full funding for GSP implementation. The proposed Fiscal Year 2026-27 fees are significantly less than the Fees established in the Fee Study and will be temporarily set as follows:
User Class / Charge Type Rate Basis
Agricultural User Base Rate $17.53 per planted acre
Agricultural User Additional Rate $26.91 per GW-irrigated acre
Agricultural User Combined Rate $44.44 per planted acre (total)
Self-Supplied User Rate $28.17 per parcel
Public Water System User Rate $58.47 per AF
For Fiscal Year 2027-28, the Fees will revert to the fees approved in Resolution 2025-05 and be adjusted based on the change in the San Francisco-Oakland-Hayward Consumer Price Index for All Urban Consumers (CPI-U), measured each December of the preceding calendar year, not to exceed 4% per year. However, staff may recommend reductions for Fiscal Year 2027-28 and subsequent fiscal years based on information they receive from groundwater users, unexpended funds that can be carried over to subsequent fiscal years, and other sources of funding, if any. The Board will review the Fee annually during the budget process and will perform a comprehensive review of the Fee and its methodology at least every five years.
Collection
Upon adoption, the Natural Resources Conservation Manager will file a copy of the Resolution with the County Auditor, and the Auditor will enter the Fee on the County assessment roll opposite each lot or parcel of land as shown in the levy roll. The Fee will be collected at the same time and in the same manner as County taxes, with due dates in December 2026 and April 2027. The levy roll is included with this item and will be kept on file with the Natural Resources Conservation Manager. The levy roll contains a list of parcels and the amount of the fee to be collected for each parcel.
Staff Recommendation and Next Steps
Staff recommend the NCGSA adopt the Resolution establishing the Fees for Fiscal Year 2026-27. Following adoption, staff will file a copy of the Resolution and submit the levy roll to the Auditor-Controller for placement on the Fiscal Year 2026-27 tax roll.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Groundwater Special Revenue Fund |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Provides a source of non-General Fund funding |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Analysis of future fiscal impact is pending |
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Consequences if not approved: |
Rates would not reflect contribution from fund balance and the GSA would continue to receive support from current funding sources. |
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Additional Information: |
Strategic Initiative: Champion Environmental Sustainability and Resilience |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
General Rule. It can be seen with certainty that there is no possibility the proposed action may have a significant effect on the environment and therefore CEQA is not applicable.14 CCR 15061(b)(3)]