Funding
Fees to Support the Long-term Sustainability of the Montecito Groundwater Basin
To support the state-mandated SGMA legislation, California Water Code 10730 grants a groundwater sustainability agency the authority to impose fees to fund the costs of a groundwater sustainability program. On June 24, 2020, Montecito GSA’s Board of Directors approved a property tax assessment (Resolution 4), pursuant to a fee study and Proposition 218 public notification and adoption process.
On Tuesday, May 27, 2025, the Board adopted Resolution No. 19 continuing a Groundwater Sustainability Fee for Fiscal Year 2026 as it was established by Resolution No. 4 in June 2020, with no increase in the fee or change in the methodology by which the fee is calculated. The Agency will continue to collect the fee on the property tax rolls, as in previous years.
The fee applies only to parcels overlying the Montecito Groundwater Basin and varies proportionally depending upon the size of the parcel. Individual charges are determined by multiplying the acreage overlying the Basin by the fee per acre. Note that most public agencies are excluded from the fee (for example: School Districts, Fire Protection Districts, Sanitary Districts, etc.).Montecito Water District contributes to the fees as detailed in the rate analysis. Please see below for additional information
This fee approach acknowledges that sustainable management of the Montecito Groundwater Basin and availability of local groundwater as a water resource benefits all property owners in the community. Some parcels overlying the Basin directly benefit from private pumping, others receive direct and indirect benefits from groundwater as a source for Montecito Water District. For example, groundwater availability offsets the need to obtain water from other sources. Still others have Montecito Water District service and private wells to draw upon.
Fee Impacts
The following tables illustrate past and current fees for parcels.
| FY 2020/21 | FY 2021/22 | FY 2022/23 | FY 2023/24, 24/25, 25/26 | |
|---|---|---|---|---|
| Fee per Acre per year (rounded) | $194 | $194 | $194 | $120 |
| Fee per Acre per installment | $97 | $97 | $97 | $60 |
| Fee per Acre per month | $16.17 | $16.17 | $16.17 | $10 |
Links to More Information:
Budget & Financial Reports
Funding Relationship between Montecito Water District & Montecito GSA
The Montecito GSA was founded as a single-agency GSA formed over a two-year process by Montecito Water District. Prior to establishment of the fee, the Agency has been staffed, managed, and funded by Montecito Water District. Sharing of staff and resources will continue, with staff and resources added as needed. The Agency will be responsible for their share of staff time, new dedicated staff, and for the reimbursement of Montecito Water District’s costs spent to date on Agency activities. While there is a great degree of shared staff, resources, and facilities, the Agency is an independent entity. (Agency Resolution No. 3). For additional information on cost sharing between Montecito Water District and Montecito GSA, please refer to the Fee Study Resolution 3, and / or Resolution 12.
Grant Funding
Montecito GSA is proactive in applying for available State funding to support the agency's work:
- In spring 2020, the California Department of Water Resources (DWR) awarded the Montecito GSA its total requested amount of $2,171,205 for the Sustainable Groundwater Management (SGM) Grant Program Planning Round 3. The approved grant helped cover the Agency’s cost to prepare the Groundwater Sustainability Plan (“GSP”) through implementation of projects that inform the GSP.
- In fall 2022, the Montecito GSA submitted an application to the California Department of Water Resources (DWR) for the Sustainable Groundwater Management (SGM) Grant Program: Sustainable Groundwater Management Act (SGMA) Implementation Round 2; no funds were received.
- Montecito GSA continues to monitor available grants and apply for potential funding as opportunities arise.