Cosumnes Groundwater Authority Draft Fee Study March 6th, 2024 - Insights and Budget Considerations

Cosumnes Groundwater Authority Draft Fee Study March 6th, 2024 1

Agenda I. Budget II. Fee Structure III. GSA Cost Allocation / Project Reserves IV. Fee Implementation / Legal Considerations 2

Budget Considerations The updated budget reflects one year of costs and includes a 5% contingency. The draft Fee Study refences an inflationary mechanism the Producers Price Index for Final Demand. The budget (and rates) may be increased each year by the PPI or 5%, whichever is less. A Project Feasibility Reserve is also included here, in the amount of $108,000. This will be held by individual GSAs and used for project planning and preparation. The Project Feasibility Reserve is allocated to agricultural irrigators and public water system users only. 3

Year 1 FY 2024-25 Budget Category / Task Notes State-Mandated Requirements Development of required Water Year Annual Reports (due annually on April 1.) Annual Report Development $ 35,000 Estimated cost to input data and generate semi- annual reports. Data Management System Maintenance $ 10,000 Due to DWR by 1-27-27. Assumes $150,000 for GSP update process. GSP Period Update (5-Year Update) $ 50,000 Projected Budget Semi-annual collection of groundwater, surface water, and subscidence data. Collection of Monitoring Network Data $ 25,000 Administration and Management Actions Staffing for Board and GSA management, DWR coordination, contract management, and outreach. Personnel $ 175,000 On-call support from technical consultants for regular authority work. Technical Support Services $ 50,000 Legal support for regular business and SGMA implementation. Legal Services $ 30,000 Costs associated with public workshops and other outreach efforts. Outreach and Engagement Supplies $ 10,000 Financial Audits $ 15,000 Yearly financial audits of public funds. Office supplies and other regular operating expenses. Miscellaneuous Operating Expenses $ 5,000 Data Gap Filling Projects $ 50,000 Specific projects TBD. Projects Funds held by member agency GSAs for use in project feasabilty exploration and preparation. Project Feasability Reserve $ 108,000 PPI Index Optionally Applied to Subtotal Each Fiscal Year (5% maximum increase). Subtotal $ 563,000 Contingency / 5% of Budget $ 28,150 5% Contingency applied each year to Subtotal. 591,150 $ Total Expenses 4 Revenue Need to be applied to fee program.

Producers Price Index The draft fee study refences use of the Producers Price Index for Final Demand Services. The budget subtotal can be increased each year by this index or 5%, whichever is lower. PPI Final Demand for Services examples: 2020: 1.6% 2021: 7.9% 2022: 5.0% 2023: 1.8% 5

Base Charge Justification As shown below, the base charge is calculated by charging all groundwater- using parcels for costs related to State-mandated requirements. SGMA Compliance Activities Annual Report Development Data Management System Maintenance GSP Period Update (5-Year Update) Collection of Monitoring Network Data $ $ $ $ 35,000 10,000 50,000 25,000 $ 120,000 Budget to Base Charge: 6

Base Charge Rates The Base Charge Rate is calculated using the Base Charge budget amount and the total of groundwater using parcels, as shown below. A rate variability is then introduced that accounts for differences in water use between parcels. Residential use incorporates a charge to reflect 0.5 AFY, and commercial use incorporates a charge to reflect 2.0 AFY. Parcel Type Residential Commerical Agricultural* Rate 23.19 $ 29.74 $ 21.00 $ 23.19 $ Agricultural With Residence* *Note: agricultural parcels are also charged the irrigated acreage fee. 7

Base Charge Revenue All Direct Groundwater-Using Parcels - Base Charge Rates Per Parcel Residential Parcels Property Type Total GW-Using Parcels % of Parcels Revenue Base Charge: $23.19 4,287 82% $99,394 Commercial / Industrial Parcels Base Charge: $29.74 78 1% $2,320 Agricultural Parcels Base Charge $21.00 618 $23.19 Base Charge With Residence 268 17% $19,192 886 Subtotal, Agricultural Parcels: Totals 5,251 $120,905 100% All GW-Using Parcels: 8

Public Water System Rate The charge per acre foot reflects the updated budget projection and average extraction in the Subbasin, as shown below: $591,150 $5.34 = 110,625 Acre Feet 9

Public Water System Fees Groundwater Extraction of Public Water Systems in the Cosumnes Subbasin Average Extraction (AF) 5-Year Rolling Average Data Obtained Through Electronic Annual Reports (SWRCB) Estimated Population Served Revenue Reported Annual GW Extarction (AF) Rate Per AF Name PWS ID Revenue 2018 27.46 5.90 0.15 51.33 239.89 0.00 1.00 1.74 0.00 0.13 4.88 0.36 2019 2020 47.60 5.93 0.06 59.18 262.31 0.00 0.39 1.30 0.10 0.09 7.11 0.21 0.03 0.01 4,780.04 7.63 31.69 2021 27.51 7.49 0.08 58.93 258.69 23.92 0.23 12.83 0.00 0.12 8.88 0.13 1.14 0.02 4,602.85 6.84 33.10 2022 33.99 7.78 0.12 52.72 244.06 23.61 0.61 14.54 Hope Foundation/Moriah Heights Ione Band of Miwok Indians MP Associates, Inc. Camanche North Shore Inc AWA - Camanche Village Laguna Del Sol Inc Rancho Seco NGS (SMUD) Dillard Elementary School Arcohe Elem School - Main Campus CA3400271 Wilton Bible Church Rancho Seco Park Cosumnes River Preserve Visitor Church of Latter Day Saints, Galt River City Recovery Center, Inc City of Galt RANCHO DEL ORO MHP Richard A. Mcgee Training Center CA0300062 CA0300078 CA0300524 CA0310008 CA0310021 CA3400181 CA3400232 CA3400254 30 62 170 255 2,384 470 27.00 350 465 125 40 300 800 60 26,536 44 300 34.14 6.77 0.11 54.88 249.80 9.51 0.51 6.42 0.26 0.12 7.49 0.25 0.77 0.01 4,492.74 7.46 33.22 4,904 $5.34 $5.34 $5.34 $5.34 $5.34 $5.34 $5.34 $5.34 $5.34 $5.34 $5.34 $5.34 $5.34 $5.34 $5.34 $5.34 $5.34 $182.30 $36.18 $0.58 $293.06 $1,333.947 $50.76 $2.75 $34.26 $1.39 $0.62 $39.98 $1.33 $4.10 $0.08 $23,991.25 $39.85 $177.38 $26,190 0.14 52.24 244.06 0.00 0.35 1.67 0.94 0.13 7.18 0.31 CA3400273 CA3400302 CA3400432 CA3400460 CA3400464 CA3410011 CA0300053 CA3410802 0.12 9.39 0.22 1.14 0.01 4,313.46 5.65 19.21 4,500.91 8.50 42.55 4,266.45 8.69 39.54 Totals: 10

PWS Project Feasibility Reserve Calculation To determine the amount of the PWS Fee that will be allocated to the Project Feasibility Reserve budget, we divide the Project Feasibility budget amount by the average AF extracted in the Subbasin. $108,000 = $0.98 110,625 Acre Feet $0.98 of the total rate ($5.34) would contribute to project feasibility efforts and be held by the respective GSAs in accordance with their charges to public water systems. 11

Irrigated Acreage Fee Rate By subtracting revenue stemming from the Base Charge and PWS Fee, we can determine the amount of budget to be allocated to the Irrigated Acreage Fee, as shown below: Total Budget: 591,150 $ Base Charge Revenue: $120,905 Public Water System Fee Revenue: Revenue Assigned to Irrigated Acreage Fee: $26,190 444,055 $ Applying this budget amount to total number of irrigated acres, we calculate the Irrigated Acreage Fee rate: $444,055 = $10.00 44,423 Irrigated Acres 12

Irrigated Acreage Fee Revenue Agricultural Irrigators - Irrigated Acreage Charge Revenue Type Rate Per Irrigated Acre Total Irrigated Acres Revenue $10.00 $444,235 Irrigated Acreage Fee 44,423 13

Irrigated Acreage Project Feasibility Reserve Calculation To determine the amount of the Irrigated Acreage Fee that will be allocated to the Project Feasibility Reserve budget, we first subtract the PWS contribution to this reserve from the budget amount. $108,000 $4,806 $103,194 - =(Irrigated Acreage Contribution) (Project Reserve Budget) (PWS Contribution) We then divide the remaining Project Feasibility budget amount by the total irrigated acres. $103,194 44,423 Irrigated Acres $2.32 = $2.32 of the total rate ($10.00) would contribute to project feasibility and be held by the respective GSAs charging agricultural irrigators. 14

All Direct Groundwater-Using Parcels - Base Charge Rates Per Parcel Residential Parcels Property Type Total GW-Using Parcels % of Parcels Revenue Revenue Summary, All Sources Base Charge: $23.19 4,287 82% $99,394 Commercial / Industrial Parcels Base Charge: $29.74 78 1% $2,320 Agricultural Parcels Base Charge $21.00 618 $23.19 Base Charge With Residence 268 17% $19,192 886 Subtotal, Agricultural Parcels: Totals 5,251 $120,905 100% All GW-Using Parcels: Public Water Systems - Extraction Charge Average AF Extracted Annually Revenue Type Rate Per AF Extracted Revenue $5.34 $26,190 Public Water Systems 4,904 Agricultural Irrigators - Irrigated Acreage Charge Revenue Type Rate Per Irrigated Acre Total Irrigated Acres Revenue $10.00 $444,235 Irrigated Acreage Fee 44,423 $591,330 Total Revenue, All Sources: 15

Base Charge Revenue by GSA Groundwater Using Parcels By GSA Agricultural Parcels with a Residence Residential Parcels Commercial Parcels Agricutural Parcels GSA Total Parcels Total Revenue Amador GSA City of Galt GSA Clay WD GSA Galt ID GSA Omochumne Hartnell WD GSA Sacramento County GSA Sloughhouse RCD GSA 169 17 11 1,845 291 167 1,787 11 0 2 32 3 8 22 1 0 17 322 54 56 168 63 0 6 98 26 24 51 244 17 36 2297 374 255 2028 $5,727 $394 $811 $52,762 $8,573 $5,842 $46,796 $120,905 4,287 78 618 268 5,251 Totals: 16

PWS Revenue by GSA Public Water System Fees By GSA Total Charge For Public Water Systems PWS AF Extracted Contribution to CGA Project Reserve Funds Held GSA Amador County GSA City of Galt GSA Clay Water District GSA Galt ID GSA Omochumne Hartnell WD GSA Sacramento County GSA Sloughhouse RCD GSA 353.17 4,493.51 0.00 0.27 9.51 33.47 14.53 4,904 $1,886 $23,995 $0 $1 $51 $179 $78 $26,190 $1,543 $19,637 $0 $1 $42 $146 $64 $21,432 $346 $4,404 $0 $0 $9 $33 $14 $4,806 Totals: 17

Irrigated Acreage Revenue by GSA Irrigated Acreage Fee By GSA Project Reserve Funds Held Number of Parcels with Irrigated Acreage Irrigated Acreage Contribution to CGA GSA Rate Revenue Amador GA City of Galt Clay WD Galt ID Omochumne Hartnell WD Sacramento County GSA Sloughhouse RCD 3 0 28 689 149 94 327 40 0 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $400 $0 $22,175 $173,810 $28,670 $68,080 $151,100 $307 $0 $17,030 $133,486 $22,019 $52,285 $116,045 $93 $0 $5,145 $40,324 $6,651 $15,795 $35,055 2,217 17,381 2,867 6,808 15,110 1,290 44,423 $444,235 $341,172 $103,062 Totals: 18

Total Revenue by GSA Total Revenue By GSA, All Sources Irrigated Acreage Revenue Total Total Project Reserve Funds Held Base Charge Revenue % of Total Revenue GSA PWS Revenue Total Revenue Contribution to CGA Amador GSA City of Galt GSA Clay WD GSA Galt ID GSA Omochumne Hartnell WD GSA Sacramento County GSA Sloughhouse RCD GSA $5,727.06 $394.15 $810.63 $52,762.14 $8,572.87 $5,842.26 $46,796.31 $120,905 $400.00 $0.00 $22,174.80 $173,810.00 $28,670.00 $68,080.00 $151,100.00 $444,235 $1,885.91 $23,995.35 $0.00 $1.46 $50.76 $178.71 $77.62 $26,190 $8,012.97 $24,389.49 $22,985.43 $226,573.60 $37,293.62 $74,100.96 $197,973.93 $591,330 1% 4% 4% 38% 6% 13% 33% 100% $7,578 $20,031 $17,841 $186,249 $30,633 $58,274 $162,905 $483,510 $438.90 $4,403.64 $5,144.55 $40,324.19 $6,660.76 $15,827.36 $35,069.44 $107,869 Totals: 19

Community Outreach Property related fees can be used for a wide range of GSA activities including capital projects. GSAs must plan for 45-day mailed notice period and public hearing (protest hearing). If grater than 50% of affected property owners submit written protest, the fee cannot be implemented. 20

Fee Study Timeline 2024 Implementation April 2024: March 2024: Draft Fee Report presented to Board Final Fee Report presented to Board November- February 2024: Community Outreach April September 2023: Continued fee refinement and community engagement Fall 2023: Reconvene forFee Study Board Workshop 21

Cosumnes Groundwater Authority Thank You! 22