BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Adopt a Resolution Approving and Adopting the Fiscal Year 2026-27 Operating and Capital Rolling Biennial Budget and Providing for Levy of Ad-Valorem Property Taxes; and Approve the Santa Clara Valley Water District Reserve Policy.
End
RECOMMENDATION: Recommendation
A. Adopt the Resolution APPROVING AND ADOPTING THE OPERATING AND CAPITAL ROLLING BIENNIAL BUDGET FOR FISCAL YEAR 2026-2027;
B. Adopt the Resolution PROVIDING FOR A LEVY OF AD VALOREM REAL PROPERTY TAXES IN FISCAL YEAR 2026-27 TO MEET THE COST OF ITS WATER SUPPLY CONTRACT WITH THE STATE OF CALIFORNIA;
C. Approve the second fiscal year of the rolling biennial budget, referred to as the Fiscal Year 2027-28 Plan; and
D. Approve the Santa Clara Valley Water District Reserve Policy.
Body
SUMMARY:
In accordance with the District Act, Section 20, adoption of the Budget, after conclusion of the public meeting(s) to hear comments from the public on the proposed budget, the Board shall by Resolution adopt the budget as finally determined including any revisions that the Board determines advisable during or after the meeting(s) and no later than June 30 of each year.
Throughout the Fiscal Year 2026-27 (FY27) budget process, staff provided numerous budget development updates for the Board and the public. The FY27 budget proposal is consistent with the Board’s direction given to staff at those meetings. Therefore, staff recommends Board approval of the Resolution Approving and Adopting the Santa Clara Valley Water District (Valley Water) Operating and Capital Budget for Fiscal Year 2026-27.
Staff is making minor modifications to the Fiscal Year 2026-27 Proposed Operating and Capital Rolling Biennial Budget relative to the version reviewed by the Board at the April 29 budget work study session, which will be summarized as a supplemental agenda item along with the budget resolutions, reserve policy and transmittal letter available on May 8, 2026.
The final summary budget document will be available on the Valley Water website by June 30, 2026.
ENVIRONMENTAL JUSTICE IMPACT:
Valley Water acknowledges that disadvantaged communities have historically been disproportionately impacted by the effects of drought and flooding, and has provided a Water Rate Assistance Program to help low-income households pay their water bills. The development of Valley Water’s budget is accomplished in an open, transparent process providing opportunity for public input into the decision-making process. To ensure meaningful awareness of Valley Water’s budget and engagement in the decision-making process, public hearings are noticed in county newspapers. The FY 2026-27 Budget, Water Charges, and Capital Improvement Program processes include over nine (9) open session discussions, supported by the Balancing Act online budget simulation tool, providing the public significant opportunity for input.
FINANCIAL IMPACT:
Financial impact to be provided in the supplemental agenda item and made available on May 8, 2026.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have a potential for resulting in direct or reasonably foreseeable indirect physical changes in the environment.
ATTACHMENTS:
Attachments to be provided in the supplemental agenda item and made available on May 8, 2026.
UNCLASSIFIED MANAGER: Manager
Darin Taylor, 408-630-3068