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I recently had the opportunity to sit down with the General Manager of the San Benito County Water District (District), Dana Jacobson, and ask questions about the land-based tax that the District assesses in certain areas of the County. Like many residents, I didn’t understand the need for the tax and why it shows up on people’s tax bills every year. This conversation was truly enlightening for me as I learned about the important role the District plays in managing the County’s water supply, and of course, what the tax money is used for.
Barroso-Osorio: For those that aren’t familiar with the San Benito County Water District, can you provide some background on the District and what it does?
Jacobson: I actually meet a lot of people that haven’t heard of us, so I guess we fly under the radar sometimes. We’re a special district created in 1953 by an act of the California legislature and our service area covers all of San Benito County. The District is the primary water resource agency in the County. Our job is to protect the quality of the groundwater basin and ensure that there is enough water to meet the needs of the community.
Barroso-Osorio: So where does our water come from anyway?
Jacobson: The majority of the water starts as rainfall that percolates into the groundwater basin. The District also manages groundwater levels by storing water from the San Benito River and releasing it later in the year to augment natural recharge. Hernandez Reservoir is our largest reservoir and is located all the way down in the southern portion of the county while Paicines Reservoir is a much smaller facility and is located just south of Tres Pinos.
The District also has a contract with the federal government to supply the County with imported water from the Central Valley Project. If you’ve driven over Pacheco Pass, you’ve probably seen San Luis Reservoir, which is where the imported water comes from.
Barroso-Osorio: Interesting, why do we need to bring in water from outside the County?
Jacobson: Great question! Historically, groundwater was the only water source available.
Unfortunately, the quality of the groundwater is generally poor because it’s high in salts and minerals. And in some areas, it’s not suitable for agriculture use either. On top of that, the basin was suffering from critical overdraft, meaning that water was being pumped out
faster than it could be replaced naturally, which caused groundwater levels to decline significantly. We needed more and better-quality water. Most people don’t realize that imported water accounts for 75%-80% of all the water delivered to homes and businesses and is also an important supplemental supply for our local farmers.
Barroso-Osorio: I didn’t realize that. When did we start using this imported water?
Jacobson: In 1977, the voters overwhelmingly passed Propositions A and B, which authorized the District to enter into a contract with the federal government and to build the facilities needed to convey the water to the County. After nearly ten years of planning and construction, imported water was first delivered to the area in the late 1980’s.
Barroso-Osorio: Is this where the tax comes from?
Jacobson: Yes! The voters recognized that a funding source would be needed and the measure approved several fees including the land tax to fund the construction and maintenance on both the federal and local distribution systems.
Barroso-Osorio: How much is the tax?
Jacobson: The tax is levied at a rate of $0.25 per $100.00 of assessed land value for all parcels located within the District’s “Zone 6” area of benefit. It appears on all property tax statements regardless of whether a parcel has direct access to CVP water, as there is a direct benefit to the groundwater basin in this area. Although the propositions approved a maximum tax rate of $1.00 per $100.00 of assessed land value, the District has never increased the rate to match our costs, which have increased over time.
Barroso-Osorio: People often ask me if the tax ever goes away.
Jacobson: I hear that a lot, especially around tax season. The short answer is no; the land tax does not sunset. The propositions are clear that the land tax would be needed to fund ongoing operations, maintenance, and repair of the facilities required to deliver imported water to the County and distribute to customers. The District’s operations and maintenance costs are approaching $18 million per year but only about $11 million is collected through the land tax. The remaining costs are recovered through water rates.
Additionally, the District still has a substantial outstanding debt obligation under its water supply contract, both to pay off the capital costs for building the federal facilities and to pay the annual water rates assessed by the U.S. Bureau of Reclamation. We still owe over $60 million for the original construction costs and we pay about $3 million per year in water rates.
Barroso-Osorio: Those are big numbers.
Jacobson: They are! But I’m happy to say that because of the work we do, the water supply of San Benito County is in good shape. The groundwater basin is being managed sustainably and the quality of water delivered to homes and farms has been dramatically improved.
Barroso-Osorio: That’s good to hear. Do you have anything else you’d like to share about what the District is doing?
Jacobson: Yes of course! We’re always planning for the future. Right now, we’re in the construction phase of the Accelerated Drought Response Project, which is a substantial infrastructure project that will improve the reliability of water supplies for our municipal customers. We expect that it will be completed towards the end of 2027.
And we’re also really excited to be providing treated water service to San Juan Bautista for the first time. This is still a few years out, but when it is finished, it will significantly improve water quality for the residents of San Juan.
Lundi Barroso-Osorio
Water Conservation Program Manager