LAFCO
Shandon-San Juan Water District
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2025 ENVIRONMENTAL DOCUMENT FILING FEE
CASH RECEIPT
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RECEIPT NUMBER:
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SEE INSTRUCTIONS ON REVERSE. TYPE OR PRINT CLEARLY.
LEAD AGENCY LEADAGENCY EMAIL DATE
SAN LUIS OBISPO LAFCO rfitzroy@slo.lafco.ca.gov 12/18/2025
COUNTY/STATE AGENCY OF FILING DOCUMENT NUMBER
COUNTY OF SAN LUIS OBISPO
PROJECT TITLE
LAFCO FILE NO. 7-S-25 I SHANDON-SAN JUAN WATER DISTRICT MUNICIPAL SERVICE REVIEW AND SPHERE
PROJECT APPLICANT NAME PROJECT APPLICANT EMAIL PHONE NUMBER
SAN LUIS OBISPO LAFCO rfitzroy@slo. lafco. ca. gov (°805))781-5795
PROJECT APPLICANT ADDRESS CITY STATE ZIP CODE
1042 PACIFIC STREET STE SAN LUIS OBISPO CA 93401
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D D D 0
[R] Local Public Agency School District Other Special District State Agency Private Entity
CHECK APPLICABLE FEES:
D Environmental Impact Report (EIR) $4,123.50 $ ___________
D Mitigated/Negative Declaration (MND)(ND) $2,968.75 $ ___________
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ti(] Exempt from fee
fi() Notice of Exemption (attach)
D CDFW No Effect Determination (attach)
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D Water Right Application or Petition Fee (State Water Resources Contrd Board only) $850.00 $
tic] County documentary handling fee $ $81.00
O Other $
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SIGNATURE AGENCY OF FILING PRINTED NAME AND TITLE
Gabriela Ugalde, Deputy County Clerk-Recorder
X
Filed in County Clerk's Office
Elaina Cano
San Luis Obispo - County Clerk-Recorder
40-12182025-273
12/18/2025
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ORIGINAL -PROJECT APPLICANT COPY -CDFWIASB COPY -LEAD AGENCY 025)
Notice of Exemption
To:'11"' Office of Planning and Research From: San Luis Obispo LAFCO
PO Box 3044, 1400 Tenth Street, Room 222 Rob Fitzroy, Executive Officer
Sacramento, CA 95812-3044 1042 Pacific St. Suite A
San Luis Obispo, CA 93401
(805)781-5795
l</ County Clerk rfitzroy@slo.lafco.ca.gov
County of San Luis Obispo
County Government Center
San Luis Obispo, CA 93408
Project Title: LAFCO File No. 7-S-25 I Shandon -San Juan Water District Municipal Service Review and Sphere of
Influence Study
Project Location: The Shandon -San Juan Water District (SSJWD) is located in the northeastern unincorporated
area of San Luis Obispo County.
Description of Nature, Purpose, & Beneficiaries of Project: The Local Agency Formation Commission (LAFCO) has
prepared a Municipal Service Review (MSR) and Sphere of Influence (SOI) Study for SSJWD pursuant to
Government Code Section 56430 and Section 56425. The SOI is a 20-year growth boundary that includes areas that
may be served by the District in the future. State law requires the MSR to be completed either prior to or
concurrent with the SOI study. The MSR evaluates the public services provided by the District and is used as the
basis for any changes to the SOI. The Commission took action to reaffirm SSJWD's SOI to remain coterminous to
the service area boundary as depicted in Attachment A, Exhibit C of the LAFCO December 18, 2025, staff report
found on the LAFCO website at https://slo.lafco.ca.gov/. The Commission also established that all services
available under Water Code Section 34000 are active with the exception of exportation of water and sewer
services which are considered latent powers.
Name of Public Agency Approving Project: The San Luis Obispo County LAFCO conducted a noticed public hearing
on December 18, 2025, at 9:00 a.m. in the Board of Supervisors Chambers in San Luis Obispo at the County
Government Center. Additional information is available on the LAFCO website at https://slo.lafco.ca.gov/.
Exemption Status: (check one)
0
Ministerial (Sec. 21080(b)(l); 15268); [gj Categorical Exemption: Section 15306
0 0
Declared Emergency (Sec. 21080(b)(3); 15269(a)); Statutory Exemptions: State code number
0
Emergency Project (Sec. 21080(b)(4); 15269 (b)(c)); [g) Other: General Rule Exemption, Section 15061(b)(3)
Reasons Why Project is Exempt: It has been determined with certainty that the MSR and SOI Study is categorically
exempt under Class 6, Section 15306, and the MSR and SOI Study also qualifies for a general rule exemption under
Section 15061(b)(3). There is no possibility that this MSR and SOI Study may have a significant effect on the
environment because there are no land use changes associated with the documents; therefore, the SSJWD MSR
and SOI Study is found to be exempt from CEQA pursuant to Section 15306 and Section 15061(b)(3) of the State
Guidelines. LAFCO will file this Notice of Exemption upon approval of the MSR and SOI Study.
Date ;7
··,
Exhibit B | Resolution No. 2025 - 10
Page 1 of 4
Municipal Service Review Determinations for the Shandon – San Juan
Water District
1. Growth and population projections for the affected area
The SSJWD serves a sparsely populated agricultural area in northeastern unincorporated
San Luis Obispo County, where precise population data is unavailable due to the District’s
irregular boundaries. Regional forecasts suggest slow growth in the broader North
County region—rising from 35,460 in 2025 to 36,961 by 2060 at an annual rate of
0.12%—with SSJWD expected to remain low-density and largely shaped by land use and
resource planning.
2. The location and characteristics of any disadvantaged unincorporated communities
within or contiguous to the sphere of influence
SSJWD's SOI and service area boundary includes one area that meets the definition of a
DUC as outlined in Government Code Section 56033.5. This area—Northeast County DUC
Area #1—is inhabited and has a Median Household Income (MHI) that is less than 80
percent of the statewide MHI, qualifying it as a DUC. Although this DUC was identified,
SSJWD does not provide public facilities or services related to wastewater, municipal or
industrial water, or structural fire protection. Therefore, no infrastructure deficiencies
affecting a DUC would result from changes to the SSJWD’s SOI or service area boundary.
3. Present and planned capacity of public facilities and adequacy of public services,
including infrastructure needs or deficiencies
The District's main purpose at formation was to enable participating landowners to
comply with the Sustainable Groundwater Management (SGMA) Act by creating a water
district that could also serve as a Groundwater Sustainability Agency (GSA) under SGMA.
In addition to its role as a GSA, the District is authorized to provide all services under
Water Code Section 34000, with the exception of exportation of water and sewer
services. At present, it appears that the District has the capacity to fulfill its GSA under
SGMA. As a member of the Paso Basin Cooperative Committee (PBCC), SSJWD
contributed to the development of the Paso Robles Subbasin Groundwater Sustainability
Exhibit B | Resolution No. 2025 - 10
Page 2 of 4
Plan (GSP), which was approved by the California Department of Water Resources in
June 2023. SSJWD has played a key role in advancing several important projects and
management initiatives, including an Economic Impact Study on irrigated agriculture in
the Paso Robles region, a Stormwater Capture and Groundwater Recharge Feasibility
Study, the development of a 3D Geologic Model, and the establishment of a
comprehensive groundwater level monitoring network. The District’s capacity is further
demonstrated through its participation in the GSP’s five-year evaluation, submitted in
January 2025. Overall, SSJWD demonstrates adequate capacity to carry out its
groundwater management responsibilities under SGMA.
4. Financial ability of agencies to provide services
To assess the District’s financial health, key indicators, including Operating Ratio,
Liquidity Ratio, and Net Position, were analyzed. Operating Ratio, which compares
annual operating revenues to operating expenses, remained below 1.0 in four of the five
years, suggesting stable financial performance and a consistent ability to generate
positive operating margins. Liquidity Ratio, which measures current assets relative to
current obligations, also remained strong across all five years, reflecting adequate short-
term financial health. The District’s Net Position, representing the difference between
total assets and total liabilities, increased by 48 percent over the five-year audited
period, a strong indicator of long-term financial growth and stability. Overall, these
financial indicators suggest that SSJWD is in a financially healthy state with adequate
financial resources to deliver its services.
5. Status of and opportunities for shared facilities
The SSJWD participates in the Paso Robles Area Groundwater Authority (Authority),
which was formed by a Joint Exercise of Power Agreement (JPA) in March 2025. The
Authority replaces the prior Memorandum of Agreement and establishes a formal
structure for implementing the Groundwater Sustainability Plan. SSJWD’s participation
in the Authority enhances efficiency, reduces duplication of efforts, and strengthens the
District’s ability to meet SGMA requirements.
Exhibit B | Resolution No. 2025 - 10
Page 3 of 4
6. Accountability for community service needs, including governmental structure and
operational efficiencies
SSJWD is governed by a five-member Board of Directors, each elected to a four-year
term. The Board holds regular meetings on the fourth Wednesday of each month at 9:00
AM. The District posts its agendas in compliance with the Brown Act and maintains an
up-to-date website in compliance with Senate Bill 929.
7. Any other matter related to effective or efficient service delivery
There are no other matters related to the efficiency of services.
Sphere of Influence Determinations for the Shandon – San Juan Water
District
1. Present and planned land uses in the area, including agricultural and open-space lands.
The present and planned land uses within the service area of SSJWD are guided by the
County’s General Plan. The entirety of the District falls within the Agricultural land-use
designation. Reaffirmation of the District’s coterminous SOI is recommended.
2. Present and probable need for public facilities and services in the area.
Given the predominantly agricultural nature of the SSJWD and its primary function as a
Groundwater Sustainability Agency representation, there is no present and probable
need for public facilities and services in the area. The District’s role is focused on
groundwater management rather than direct service provision. Reaffirmation of the
District’s coterminous SOI is recommended.
3. Present capacity of public facilities and adequacy of public services that the agency
provides or is authorized to provide.
At present, it appears that the District has the capacity to fulfill its responsibilities as a
Groundwater Sustainability Agency (GSA) under the Sustainable Groundwater
Management Act (SGMA). As a member of the Paso Basin Cooperative Committee (PBCC),
SSJWD contributed to the development of the Paso Robles Subbasin Groundwater
Sustainability Plan (GSP), which was approved by the California Department of Water
Resources in June 2023. The District’s capacity is further demonstrated through its
Exhibit B | Resolution No. 2025 - 10
Page 4 of 4
participation in the GSP’s five-year evaluation, submitted in January 2025. The evaluation
reported encouraging trends, including rising groundwater levels attributed to above-
average rainfall, enhanced data collection efforts, and progress in policy implementation.
To support long-term GSP execution and improve regional coordination, a new
governance entity—the Paso Robles Area Groundwater Authority—was established in
March 2025 through a Joint Powers Agreement. This Authority replaces the PBCC and will
oversee GSP implementation, funded primarily through groundwater extraction
fees. Overall, SSJWD demonstrates adequate capacity to carry out its groundwater
management responsibilities. Reaffirmation of the District’s coterminous SOI is
recommended.
4. Existence of any social or economic communities of interest in the area if the
commission determines that they are relevant to the agency.
There are no social or economic communities of interest within the District service area
boundary.
5. For an update of the sphere of influence of a city or special district that provides public
facilities or services related to sewers, municipal and industrial water, or structural fire
protection, the present and probable need for those public facilities and services of any
disadvantaged unincorporated communities within the existing sphere.
One DUC was identified within the SSJWD service area boundary, as seen in Figure 1.
Although this DUC was identified, SSJWD does not provide public facilities or services
related to wastewater, municipal or industrial water, or structural fire protection, and
therefore, no infrastructure deficiencies to a DUC would result from changes to the
SSJWD’s SOI or service area boundary. Reaffirmation of the District’s coterminous SOI is
recommended.
Shandon - San Juan Water District
Municipal Service Review
and Sphere of Influence Study
Prepared by
The San Luis Obispo Local Agency Formation Commission
Adopted December 18, 2025
Resolution No. 2025 - 10
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MSR & SOI Study
TABLE OF CONTENTS
About LAFCO _________________________________________________________ 4
Authority and Objectives ___________________________________________________________ 4
Regulatory Responsibilities _________________________________________________________ 4
Planning Responsibilities ___________________________________________________________ 5
LAFCO Decision-Making ____________________________________________________________ 6
SLO LAFCO ______________________________________________________________________ 7
Acknowledgments ________________________________________________________________ 8
District MSR & Sphere of influence Study ___________________________________ 9
Overview _____________________________________________________________________ 9
At A Glance __________________________________________________________________ 10
Background __________________________________________________________________ 10
Population Profile _____________________________________________________________ 11
Present and Planned Land Use ___________________________________________________ 14
Accountability ________________________________________________________________ 16
Services & Capacity ____________________________________________________________ 16
Finance ______________________________________________________________________ 23
Sphere of Influence ____________________________________________________________ 28
Determinations ______________________________________________________ 30
Municipal Service Review Determinations ____________________________________________ 30
Sphere of Influence Determinations _________________________________________________ 33
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List of Figures
Figure 1: Northeast County DUC Area #1 Map ....................................................................................... 13
Figure 2: SSJWD Land Use Designations ................................................................................................. 15
Figure 3: Audited Revenues and Expenditures ....................................................................................... 24
Figure 4: Operating Ratio (FY 2019-20 - FY 2023-24) ............................................................................. 25
Figure 5: Liquidity Ratio (FY 19-20 - FY 23-24) ....................................................................................... 27
Figure 6: SSJWD Boundary Map Adopted September 2019 ................................................................... 29
List of Tables
Table 1: District Profile ........................................................................................................................... 10
Table 2: SSJWD Board of Directors ......................................................................................................... 16
Table 3: Current Assets and Liabilities .................................................................................................... 26
Table 4: Audited Net Position ................................................................................................................. 27
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ABOUT LAFCO
Authority and Objectives
Local Agency Formation Commissions (LAFCOs) were established in 1963 and are considered regional
subdivisions of the State of California responsible for providing regional growth management services
in all 58 counties. LAFCOs’ authority is codified under the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000 (CKH), with principal oversight provided by the Assembly Committee on
Local Government. LAFCOs are comprised of locally elected and appointed officials with regulatory and
planning powers delegated by the Legislature to coordinate and oversee the establishment, expansion,
and organization of cities and special districts and their municipal service areas.
Regulatory Responsibilities
LAFCOs’ principal regulatory responsibility involves approving or disapproving all jurisdictional changes
involving the establishment, expansion, and reorganization of cities, towns, and most special districts
in California. CKH defines “special district” to mean any agency of the State formed pursuant to general
law or special act for the local performance of governmental or proprietary functions within limited
boundaries. All special districts in California are subject to LAFCO oversight, with the following
exceptions: school districts, community college districts, assessment districts, improvement districts,
community facilities districts, and air pollution control districts. LAFCOs are also tasked with overseeing
the approval process for cities, towns, and special districts to provide new or extended services beyond
their jurisdictional boundaries by contracts, agreements, or annexation. LAFCOs also oversee special
district actions to either activate new service functions and service classes or divest existing services.
LAFCOs generally exercise their regulatory authority in response to applications submitted by affected
agencies, landowners, or registered voters. Recent amendments to CKH also authorize and encourage
LAFCOs to initiate jurisdictional changes to form, consolidate, and dissolve special districts consistent
with community needs.
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Planning Responsibilities
LAFCOs inform their regulatory actions, in part, through two central planning responsibilities: (a)
making sphere of influence determinations and (b) preparing municipal service reviews. With this, and
other relevant information in the record, LAFCO makes decisions on a variety of matters, including but
not limited to annexations to cities and special districts, city incorporations, activation of powers for
special districts, dissolutions of special districts, etc.
Sphere of Influence
A Sphere of Influence (SOI) is defined by Government Code Section 56425 as a plan for the probable
physical boundary and service area of a local agency or municipality. An SOI is generally considered a
20-year, long-range planning tool. LAFCOs establish, amend, and update SOIs for all applicable
jurisdictions in California every five years, or as necessary. When updating an SOI, LAFCOs are required
to consider and prepare a written statement of their determinations concerning each of the following
five factors:
1) The present and planned land uses in the area, including agricultural and open-space lands.
2) The present and probable need for public facilities and services in the area.
3) The present capacity of public facilities and adequacy of public services that the agency provides
or is authorized to provide.
4) The existence of any social or economic communities of interest in the area if the commission
determines that they are relevant to the agency.
5) For an update of a sphere of influence of a city or special district that provides public facilities
or services related to sewers, municipal and industrial water, or structural fire protection, that
occurs pursuant to subdivision (g) on or after July 1, 2012, the present and probable need for
those public facilities and services of any disadvantaged unincorporated communities within
the existing sphere of influence.
The intent in preparing the written statements is to orient LAFCOs in addressing the core principles
underlying the sensible development of local agencies consistent with the anticipated needs of the
affected communities.
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MSR & SOI Study
Municipal Service Reviews
Municipal Service Reviews (MSRs), in contrast, are intended to inform, among other activities, SOI
determinations. LAFCOs also prepare MSRs regardless of making any specific sphere determinations in
order to obtain and furnish information to contribute to the overall orderly development of local
communities. When updating an MSR, LAFCOs are required to consider and prepare written
statements of their determinations with respect to each of the following seven factors:
1) Growth and population projections for the affected area.
2) The location and characteristics of any disadvantaged unincorporated communities within or
contiguous to the sphere of influence.
3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure
needs or deficiencies, including needs or deficiencies related to sewers, municipal and industrial
water, and structural fire protection in any disadvantaged, unincorporated communities within
or contiguous to the sphere of influence.
4) Financial ability of agencies to provide services.
5) Status of, and opportunities for, shared facilities.
6) Accountability for community service needs, including governmental structure and operational
efficiencies.
7) Any other matter related to effective or efficient service delivery, as required by commission
policy.
LAFCO Decision-Making
LAFCO decisions are legislative in nature and, therefore, are not subject to an outside appeal process;
only courts can overturn LAFCO decisions. LAFCOs also have broad powers with respect to conditioning
regulatory and planning approvals, so long as they do not establish any terms that directly affect land
use density or intensity, property development, or subdivision requirements.
LAFCOs are generally governed by a board comprised of county supervisors, city council members,
independent special district members, a representative of the general public, and an alternate member
for each category. SLO LAFCO is governed by a seven-member board comprised of two county
supervisors, two city council members, two independent special district members, one representative
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MSR & SOI Study
of the general public, and an alternate member for each category. All members serve four-year terms
and must exercise their independent judgment on behalf of the interests of residents, landowners, and
the public as a whole. LAFCO members are subject to standard disclosure requirements and must file
annual statements of economic interests. LAFCOs are independent of local government, with their own
staff. All LAFCOs, nevertheless, must appoint their own Executive Officers to manage agency activities
and provide written recommendations on all regulatory and planning actions before the Commission.
In addition, all LAFCOs must also appoint their own legal counsel.
SLO LAFCO
Regular Commissioners
Chair Steve Gregory City Member
Vice Chair Heather Moreno County Member
Dawn Ortiz-Legg County Member
Ed Waage City Member
Edy Eby Special District Member
Navid Fardanesh Special District Member
David Watson Public Member
Alternate Commissioners
Bruce Gibson County Member
Carla Wixom City Member
Vacant Special District Member
Michael Draze Public Member
Staff
Rob Fitzroy Executive Officer
Imelda Marquez-Vawter Senior Analyst
Morgan Bing Analyst
Melissa Morris Commission Clerk
Holly Whatley Legal Counsel
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Contact Information
San Luis Obispo LAFCO’s office is located at 1042 Pacific St, Suite A, in the City of San Luis Obispo. The
LAFCO office is open by appointment to discuss proposals or other matters and can be scheduled by
calling 805-781-5795. Additional information is also available online by visiting slo.lafco.ca.gov.
Acknowledgments
San Luis Obispo LAFCO gratefully acknowledges the time and effort of staff with the Shandon – San
Juan Water District in assisting in the preparation of this report, including – but not limited to – the
following individuals:
Stephanie Bertoux, Secretary/Treasurer
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DISTRICT MSR & SPHERE OF INFLUENCE STUDY
Overview
This report represents San Luis Obispo LAFCO’s first scheduled municipal service review (MSR) for the
Shandon-San Juan Water District (SSJWD or District) since the District was formed in 2017. The report
has been prepared by staff in accordance with the requirements of the Government Code. The purpose
of this report is to produce an independent assessment of municipal services in this area over the next
five years, or as seen necessary, relative to the Commission’s regional growth management duties and
responsibilities as established by the State Legislature. This includes evaluating the current and future
relationship between the availability, demand, and adequacy of municipal services within the service
areas of the District, subject to the Commission’s oversight. Information generated as part of the report
will be used by the Commission in (a) guiding subsequent sphere of influence updates, (b) informing
future boundary changes, and – if merited – (c) initiating government reorganizations, such as special
district formations, consolidations, and/or dissolutions.
The period for collecting data to inform the Commission’s analysis reflects information since the District
was formed in 2017. The financial analysis has been set to cover the last five-year budgeted and the
last five-year audited fiscal year period. The timeframe for the report has been generally oriented to
cover the next five to seven-year period.
The document outline serves to inform all the state-mandated requirements outlined in Government
Code Sections 56430 and 56425. Written determinations have been included as the concluding chapter
of this document.
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MSR & SOI Study
At A Glance
Table 1: District Profile
Agency Name Shandon-San Juan Water District
Formation 2017
Legal Authority California Water Code, Section 34000 et seq.
Mailing Address P.O. Box 150, Shandon, CA 93461
Website www.ssjwd.org
Secretary/Treasurer Stephanie Bertoux
Public Meetings The Board of Directors meets on the fourth Wednesday of each month
at 9 AM at 3385 Truesdale Road, Shandon, CA 93461.
Board of Directors Five members elected to four-year terms
District Service Area 108,338 acres
Background
The Shandon-San Juan Water District (SSJWD or District) was formed by a petition of landowners under
the provisions of Government Code Section 56000 et. seq. The District is a landowner-voter district1
and its primary purpose at formation was to enable participating landowners to comply with
the Sustainable Groundwater Management Act (SGMA) by creating a water district that could also
serve as a Groundwater Sustainability Agency (GSA), as permitted under SGMA.
Enacted on January 1, 2015, SGMA provides a framework for the sustainable, long-term management
of groundwater resources by local agencies, with provisions for state oversight if local efforts are
insufficient. The legislation required the formation of GSAs by June 2017 and the adoption
of Groundwater Sustainability Plans (GSPs) by January 31, 2020.
Unlike traditional water service providers, SSJWD does not deliver water or infrastructure services.
Instead, it functions primarily as a representative entity for landowners who voluntarily choose to “opt
1 “Landowner-voter district” means a district whose principal act provides that owners of land within the district are
entitled to vote upon the election of district officers, the incurring of bonded indebtedness, or any other district matter.
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in,” ensuring their interests are reflected in groundwater management efforts under SGMA by the
SSJWD.
Population Profile
The SSJWD serves a broad agricultural area in northeastern unincorporated San Luis Obispo County.
Due to the District’s irregular and non-contiguous boundaries, precise population data is not readily
available. However, regional forecasts from the San Luis Obispo Council of Governments (SLOCOG)
indicate slow growth in the broader unincorporated North County Area, which encompasses SSJWD.
According to SLOCOG projects, the North County population is expected to increase from
approximately 35,460 in 2025 to 36,961 by 2060, reflecting a growth rate of 0.12% per year over the
35-year period.2
Given SSJWD’s primarily agricultural land use and limited residential infrastructure, population growth
within the District is similarly expected to remain gradual and low-density. Data from the County Clerk-
Recorder’s Office suggests there are roughly 60 registered voters within SSJWD. While voter
registration is not a precise measure of population, it offers a general sense of the District’s residential
density. Overall, while SSJWD may experience incremental growth, it is expected to remain a sparsely
populated area. Future growth will likely be closely tied to resource availability, land use planning, and
agricultural priorities.
Disadvantaged Unincorporated Communities
LAFCO is required to evaluate Disadvantaged Unincorporated Communities (DUCs) as part of this MSR,
including the location and characteristics of any such community. Per Government Code Section
56033.5, a DUC is defined as any area with 12 or more registered voters where the median household
income (MHI) is less than 80 percent of the statewide MHI. Once the locations of the DUCs have been
identified, LAFCOs are further required to evaluate any present and probable need for services related
to sewer, municipal/ industrial water, or structural fire protection of any DUC within the existing SOI.
The legislative intent is to prohibit selective annexations by cities of tax-generating land uses while
2 2060 Regional Growth Forecast for the San Luis Obispo County Region, San Luis Obispo Council of Governments
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leaving out underserved, inhabited areas with infrastructure deficiencies and a lack of access to reliable
potable water, wastewater, and fire protection services.
To identify the MHI for locations within the unincorporated areas of the County, and to identify those
that meet the DUC MHI threshold, LAFCO used U.S. Census American Community Survey (ACS) five-
year reports for Census Block Groups (CBG) and Census Designated Places (CDP) data. Once a CBG or a
CDP meets the DUC MHI threshold, LAFCO then verifies that those areas are inhabited as specified in
Government Code Section 56033.5 using registered voter data from the County Clerk-Recorder.
Using this methodology, one DUC was identified in proximity to and partially within SSJWD’s service
area, as shown in Figure 1, and is referred to as Northeast County DUC Area #1. This DUC has an MHI
of $61,526 and approximately 1,009 registered voters. Although this DUC was identified, SSJWD does
not provide public facilities or services related to wastewater, municipal or industrial water, or
structural fire protection. Therefore, no infrastructure deficiencies affecting a DUC would result from
changes to the SSJWD’s SOI or service area boundary.
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Figure 1: Northeast County DUC Area #1 Map
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Social or Economic Communities of Interest in the Area
There are no District relevant social or economic communities of interest in the area served.
Present and Planned Land Use
The present and planned land uses within SSJWD’s service area are governed by the County General
Plan. The General Plan provides a basis for local government land use decisions, providing clear
guidance to citizens, developers, and decision-makers regarding how land within the County’s
unincorporated areas can be developed. As illustrated in Figure 2, the entirety of the District falls within
the Agriculture land-use designation. However, because SSJWD was formed to assumes the functions
of a Groundwater Sustainability Agency, its operations and services are not influenced by specific land
use designations within its boundaries.
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Figure 2: SSJWD Land Use Designations
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Accountability
SSJWD is an independent special district governed by a five-member Board of Directors, each elected
to a four-year term. To be qualified, directors must be holders of title to land within the District or the
legal representative of a holder of title to land within the District. The Board holds regular meetings on
the fourth Wednesday of each month at 9:00 AM at the Illy Lodge located at 3385 Truesdale Rd.,
Shandon, CA 93461. Special meetings are held as necessary and are publicly noticed. The public may
participate in person, via phone, or by logging onto the web-based meeting link provided on each
agenda. Agendas and board packets are emailed to landowners and interested parties, posted on the
SSJWD website, and posted in the window at the meeting location. Every agenda for a regular meeting
provides an opportunity for members of the public to directly address the board.
Table 2: SSJWD Board of Directors
Board Member Title Term
Willy Cunha President 2023 – 2027
Steve Sinton Vice President 2025 – 2029
Marshall Miller Director 2025 – 2029
Ray Shady Director 2025 – 2029
Matt Turrentine Director 2023 – 2027
SSJWD maintains an up-to-date website in compliance with Senate Bill 929, which contains contact
information for the District, the current agenda, financial transaction reports, compensation reports,
and an SB 272 Enterprise System catalog. Approved minutes of the Board’s regular meetings are also
made available for public access on the website. The District also reports that all Form 700 financial
disclosure statements are current and in compliance with state requirements.
Services & Capacity
Authorized Services
SSJWD’s governance authority is established under California Water District Law, Water Code Section
34000 et. seq. This principal act outlines the broad range of services and facilities that a water district
may provide. In accordance with Government Code Section 56425(i), when LAFCO adopts, updates, or
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amends a SOI for a special district, it must also determine the nature, location, and extent of the
functions or services the district is authorized to provide. Furthermore, under Government Code
Section 56050.5, any service authorized by the district’s principal act that is not currently being
exercised is considered a latent power, requiring LAFCO approval prior to activation.
As part of SSJWD’s formation approval in 2017, the Commission also took action to activate all powers
available under Water Code Section 34000 with the exception of the following powers:
1. Exportation of Water: SSJWD’s authority to export, transfer, or move groundwater outside the
boundaries of the Paso Robles Groundwater Basin was deemed latent.
2. Sewer Services: Powers granted under Part 5, Chapter 2, Article 5 (Sections 35500-35509) of
the California Water Code, relating to sewer infrastructure and services, were also designated
as latent.
This services and capacity section analyzes present and long-term infrastructure demands and resource
capabilities of the local agency. LAFCO reviews and evaluates 1) the resources and services that are
currently available, and 2) the ability of the District to expand such resources and services in line with
increasing demands. An adequate supply of services should be documented to support areas in the
sphere, envisioned for eventual annexation and service by a jurisdiction.
Groundwater Sustainability Plan Implementation
The Sustainable Groundwater Management Act (SGMA), enacted in 2014, required local agencies to
manage groundwater. In September 2017, five local agencies — Shandon-San Juan Water District,
Heritage Ranch Community Services District3, the City of Paso Robles, San Luis Obispo County, and San
Miguel Community Services District (SMCSD)— formed GSAs and formed the Paso Basin Cooperative
Committee (PBCC) under a Memorandum of Agreement (MOA) to develop the Groundwater
Sustainability Plan (GSP) to sustainably manage the portions of the Paso Robles Basin underlying their
combined service areas (i.e. all portions of the Basin located within San Luis Obispo County). The PBCC
has now been superseded by the Paso Robles Area Groundwater Authority which was established in
March 2025 through a Joint Powers Agreement (more details further below).
3 Heritage Ranch Community Services District withdrew from the Paso Basin Cooperative Committee in 2020
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The GSP, which was approved by the California Department of Water Resources (DWR) on June 30,
2023, outlines the approach to achieve a sustainable groundwater resource free of undesirable results
within 20 years, while maintaining the unique cultural, community, and business aspects of the
Subbasin. In adopting this GSP, it was the goal of the GSAs to balance the needs of all groundwater
users in the Subbasin, within the sustainable limits of the Subbasin’s resources. The GSP describes the
Paso Robles Subbasin, develops quantifiable management objectives that consider the interests of the
Subbasin’s beneficial groundwater uses and users, and identifies management actions and conceptual
projects that will allow the Subbasin to achieve sustainability by 2040. The GSP covers the entire Paso
Robles Subbasin.
As previously stated, the GSP includes a set of management actions and projects designed to achieve
groundwater sustainability by 2040. While the GSP is a joint plan, some projects are specific to
individual GSAs, including SSJWD. Basin-wide management actions include:
• Monitoring, reporting, and outreach
• Promoting best water use practices
• Promoting stormwater capture
• Promoting voluntary fallowing of irrigated crop land
To support these actions, the GSP identifies infrastructure projects that will enhance water supply and
reduce reliance on groundwater. Several potential projects are described in the GSP that may be
implemented by willing entities to offset pumping and lessen the degree to which the management
actions would be needed. The implementation of projects depends on willing participants and/or
successful funding votes. There are six potential sources of water for projects under the GSP, including:
1. Tertiary treated wastewater supplied and sold by the City of Paso Robles and the San Miguel
CSD to private groundwater extractors to use in lieu of groundwater. This water is commonly
referred to as recycled water (RW).
2. State Water Project Water
3. Nacimiento Water Project Water
4. Salinas Dam/Santa Margarita Reservoir Water
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5. Local Recycled Water
6. Flood flows/stormwater from local rivers and streams
As one of the GSAs, SSJWD plays a vital role in implementing the GSP within its jurisdiction. While the
GSP is basin-wide, SSJWD is responsible for advancing specific projects and management actions
tailored to its service area. These may include local infrastructure improvements, water conservation
initiatives, and participation in regional water supply projects. Below is a summary of key projects and
management actions SSJWD has undertaken or contributed to between 2020 and 2025.
Stormwater Capture & Groundwater Recharge Feasibility Study and 3D Geologic Model Development:
In collaboration with Estrella – El Pomar – Creston Water District (EPCWD), SSJWD conducted a basin-
wide groundwater recharge feasibility study. A key outcome of this effort was the development of a
detailed 3D geologic model, which is now actively used by the Paso Robles Groundwater Authority and
continues to be refined as new data becomes available. The study and model provide several important
benefits, such as:
• Maintaining a visual and graphical representation of the local geologic setting and distribution
of principal aquifers, faults, and aquitards, thereby allowing improved understanding of
groundwater conditions
• Supporting characterization of groundwater level and water quality conditions
• Enabling the development of additional geologic cross sections
• Providing input data for a numerical groundwater flow model update
Filling data gaps identified in the GSP Synoptic Streamflow Study: The SSJWD funded a synoptic
streamflow survey on several tributary streams to the Salinas River in the Subbasin. The survey included
measurements of stream flow and stream depth at regularly spaced intervals collected along 19
transects located on Huer Huero Creek, Shell Creek, San Juan Creek, and the Estrella River. The data
collected in this synoptic streamflow study enhances the understanding of surface water/groundwater
interactions within the Subbasin and helps to fill an important data gap identified in the GSP. This
synoptic streamflow survey dataset will be used to improve the Subbasin groundwater model and to
run more highly constrained, predictive surface water groundwater interaction simulations.
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SSJWD Groundwater Level Monitoring Network: SSJWD launched a pilot program to monitor
groundwater levels by partnering with member well owners across the District. Since 2020,
approximately 40 wells have been measured monthly at no cost to participating landowners. The
collected data is shared with the PBCC/Authority and is incorporated into the GSP Annual Report. This
effort has helped fill critical data gaps and significantly reduced uncertainty in analyses of groundwater
elevations and changes in groundwater storage.
Participation in Basin-wide Monitoring Network Development & Expansion TAC: One SSJWD Board
Member volunteered their time to serve on the PBCC’s Technical Advisory Committee to develop a
framework for the Well Monitoring Network Expansion for the Subbasin.
Economic Impact Study: SSJWD – in partnership with EPCWD, SLO County Farm Bureau, Paso Robles
Wine Country Alliance, and AgWest Farm Credit - commissioned an economic impact study examining
irrigated agriculture in the Paso Robles area. The study evaluates the potential economic consequences
of groundwater reductions associated with SGMA and GSP implementation. It highlights the significant
risks to the local economy and encourages the exploration of creative, flexible GSP implementation
strategies beyond groundwater pumping cutbacks alone.
Temporary Flood Flow Diversion Projects: In 2023, two temporary flood flow diversion projects were
implemented in the Shandon and Paso Robles areas under the authority of California State Executive
Order N-4-23. Together, these projects diverted an estimated 47 acre-feet of floodwater, which was
recharged into underlying aquifers. These projects support key goals outlined in the GSP by
contributing to Measurable Objectives related to groundwater levels, groundwater storage, and the
reduction of land subsidence.
Promoting Voluntary Fallowing of Agricultural Land – Multipurpose Irrigated Land Re-Purposing
Program: Two SSJWD Board Members volunteered their time to serve on the PBCC’s Technical Advisory
Committee to develop a framework for the Multipurpose Irrigated Land Re-Purposing Program.
Blended Irrigation Water Supply Project TAC Participation: Two SSJWD Board members volunteered
their time to serve on the PBCC’s Technical Advisory Committee to assess the practicality of delivering
blended water supplies from the Lake Nacimiento pipeline and the City of Paso Robles recycled water
system for agricultural use in lieu of groundwater pumping.
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Applications to the State Water Resources Control Board: On January 25, 2021, SSJWD submitted two
water right Applications to the SWRCB for the purpose of capturing stormwater for groundwater
recharge. Revised applications were submitted in 2024. Water Right Application A033189 is to divert
14,000 acre-feet per year (AFY) of unallocated Salinas River water from Santa Margarita Lake via a
proposed pipeline to Huer Huero Creek for groundwater recharge and underground storage. Surface
water diverted would be infiltrated to storage in the underlying Paso Robles Subbasin using the Huer
Huero Creek streambed. Water stored underground would be extracted by overlying wells within the
Subbasin for agricultural irrigation use within a 12-month period. Water right Application A033190 is
to divert 14,000 AFY of unallocated Salinas River water from Lake Nacimiento to the Nacimiento
Pipeline to two proposed pipelines (Wellsona Road Pipeline and Creston Road Pipeline). Water diverted
to the proposed pipelines would be conveyed to the Estrella River and Huer Huero Creek for
groundwater recharge and underground storage for agricultural irrigation use and stock watering
within a 12-month period. In summary, the Salinas River watershed unallocated flood flows that
normally would pass through Lake Nacimiento and Santa Margarita Lake during high flow events would
be diverted and discharged into the creek beds. The creek beds will act as groundwater “recharge
facilities” to the underlying Paso Robles Subbasin. The recharged water would later be recovered for
agricultural use in the Subbasin. The concepts that formed the basis for the proposed Project are listed
in the GSP as one of the basin-wide management actions (Section 9.3) and also as a project (Section
9.5). The benefits of recharging the Paso Robles Subbasin with unallocated flood flows from this Project
would be shared by all groundwater users within the Subbasin. SSJWD envisions that the remaining
member GSAs will recognize the benefits of the proposed project and participate as stakeholders in
developing the Project to completion.
Community Outreach: SSJWD publishes a quarterly electronic newsletter to keep Basin stakeholders
informed and engaged in the ongoing implementation of the GSP. This newsletter also serves as a
valuable platform for gathering community feedback. In addition, at the SSJWD Board meeting held on
September 24, 2025, the Board proposed establishing an all-volunteer Ad Hoc Committee. This
committee would include representatives from SSJWD, EPCWD, Basin landowners, and members of
the public. Its purpose is to solicit input and develop recommendations for presentation to PRAGA. The
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Ad Hoc Committee is expected to convene twice. The first meeting was successfully held in early
October 2025.
Groundwater Sustainability Plan Evaluation
As part of monitoring, reporting, and outreach, SGMA requires periodic evaluation of approved GSPs
at least every five years. The periodic evaluation represents the GSAs’ written assessment of GSP
implementation and adaptive management. The GSAs submitted the 5-Year Plan Evaluation to the
DWR on January 30, 2025. The evaluation details numerous significant actions undertaken by the PBCC
to demonstrate progress towards sustainability in the Subbasin within the 20-year SGMA
implementation time frame. Key takeaways from the evaluation include the following:
• Over the past five years, groundwater monitoring data revealed rising water levels due to
above-average precipitation, with no significant changes in subsidence or water quality
conditions linked to groundwater management.
• Significant strides have been made in data collection, policy changes, and governance, with
water level declines in most representative monitoring sites reversed, indicating notable
progress towards sustainability.
• The GSAs believe it is premature to revise or amend the GSP at this time. Several key activities,
such as the installation of more monitoring wells and the initiation of GSP projects and
programs, are still in progress.
The implementation of the GSP to date, in tandem with higher-than-average rainfall over the past two
years, has been effective in preventing further declines in groundwater levels and, by extension, the
reduction of groundwater in storage. These activities, in addition to planned Projects and Management
Actions, indicate progress toward achieving sustainability in the first 5-year period of SGMA
implementation.
Paso Robles Area Groundwater Authority
With the GSP now approved by the State, a long-term governance structure was recently adopted to
implement it more effectively. The Joint Exercise of Powers Agreement (JPA), adopted in March 2025,
supplants the MOA and creates a legal entity, the Paso Robles Area Groundwater Authority (Authority),
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to oversee and fund GSP implementation. The 4-Party JPA defines governance, voting rights, funding
mechanisms, and responsibilities. The Authority will be funded primarily through groundwater
extraction fees, though initial costs will be covered by contributions from the GSAs. The Authority has
powers to regulate and manage groundwater use, but does not replace the individual GSAs. The JPA
includes:
• City of Paso Robles
• County of San Luis Obispo
• Estrella-El Pomar-Creston Water District
• Shandon-San Juan Water District
In 2025, the Authority proposed a groundwater management charge to fund implementation of its GSP
and meet the requirements of SGMA. The proposed fee would have applied to agricultural,
commercial, and public water system pumpers—excluding small domestic well owners who use less
than 2 acre-feet per year. The services to be funded include State-mandated monitoring and reporting,
GSP program administration, regulatory programs, and groundwater demand reduction projects and
management actions. However, during a public hearing on August 1, 2025, a majority of affected
property owners formally protested the fee, surpassing the threshold required to block its enactment.
The Authority is now working to identify alternative funding mechanisms to ensure it can continue to
make essential contributions.
Finance
LAFCO is required to make a determination regarding the financial ability of SSJWD to provide public
services. This section provides a general overview of the District’s financial health and establishes the
context for LAFCO’s financial determinations. To evaluate the District’s overall financial condition,
LAFCO utilizes three key financial indicators:
• Operating Ratio: Assessment of revenues relative to expenditures;
• Liquidity Ratio: Analysis of assets and liabilities to gauge short-term financial stability;
• Net Position: Measurement of the District’s overall financial worth.
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The primary data sources for this evaluation are the District’s audited financial statements from Fiscal
Years (FY) 2019-2020 through FY 2023-2024.
Budget
The District adopts an annual budget on or before June 30th of each fiscal year. The Board of Directors
retains the authority to amend the budget by motion at any time during each fiscal year. All
appropriations lapse at the end of the fiscal year to the extent that they have not been expended. The
District’s budget documents are made publicly available on the District’s website.
Audited Financial Statements
SSJWD hires an outside accounting firm to perform an annual audit in accordance with established
governmental accounting standards. This includes auditing SSJWD’s financial statements with respect
to verifying overall assets, liabilities, and net position. These audited statements provide quantitative
measurements in assessing SSJWD’s short and long-term fiscal health with a specific focus on delivering
its active service functions.
Revenues and Expenditures
The District is primarily funded through property assessments, interest income, and grant revenue. As
shown in Figure 3 below, the District’s revenues have fluctuated over the last five fiscal years. Similarly,
the District’s total expenditures—primarily related to project expenses, monitoring, and administration
and operations—have varied during this period, with no consistent upward or downward trend.
Figure 3: Audited Revenues and Expenditures
$800,000.00
$690,857.00
$700,000.00
$600,000.00
$500,166.00
$500,000.00
$401,439.00 $401,325.00
$379,439.00
$400,000.00 $339,292.00
$300,000.00 $264,374.00
$164,867.00 $176,511.00 $184,334.00
$200,000.00
$100,000.00
$-
FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
Revenues Expenditures
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To assess the District’s ability to meet its financial obligations, Figure 4 displays the Operating Ratio
for the past five audited fiscal years. This ratio—calculated as annual operating expenses divided by
annual operating revenues—serves as a basic indicator of financial performance:
• A ratio below 1.0 indicates the agency is operating at a surplus
• A ratio above 1.0 indicates the agency is operating at a deficit
Over the five-year period, the District’s Operating Ratio remained below 1.0 in four of the five years,
indicating that operating revenues exceeded operating expenses in most years. In FY 2020-21, the
District operated at a deficit due to high project expenses related to two water right applications that
were prepared and submitted to the State Water Resources Control Board.4 Overall, the District’s
Operating Ratios suggest stable financial performance and a consistent ability to generate positive
operating margins.
Figure 4: Operating Ratio (FY 2019-20 - FY 2023-24)
FY 23-24 0.46
FY 22-23 0.44
FY 21-22 0.78
FY 20-21 1.82
FY 19-20 0.33
0 0.2 0.4 0.6 0.8 1 1.2 1.4
4 SSJWD has prepared and submitted two water right applications to the State Water Resources Control Board to divert
unappropriated streamflow in the Salinas River Watershed (Santa Margarita Lake and Lake Nacimiento) for the purposes
of recharging the Paso Robles Subbasin. SSJWD anticipates that the remaining member GSAs will recognize the regional
benefits of the proposed project and actively engage as stakeholders in its development and implementation.
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Assets and Liabilities
An agency’s assets represent resources that provide current, future, or potential economic benefits.
These assets may include items the agency owns or amounts owed to the agency. Over the past five
audited years, SSJWD’s total assets have grown, reaching $681,898 at the end of FY 2023-24.
An agency’s liability is something the agency owes, usually a sum of money. Liabilities are settled over
time through the transfer of economic benefits, including money, goods, or services. At the close of FY
2023-24, SSJWD’s audited liabilities totaled approximately $49,966. In FY 2019-20, FY 2021-22, and FY
2022-23, the District reported no liabilities.
Table 3: Current Assets and Liabilities
Category FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
Current
$ 426,513.00 $155,438.00 $ 190,013.00 $ 414,941.00 $ 681,898.00
Assets
Current
- $ 40,343.00 - - $ 49,966.00
Liabilities
Figure 5 illustrates the District’s Liquidity Ratios from FY 2019-20 through FY 2023-24. This ratio
measures the District’s ability to meet its short-term financial obligations by comparing unrestricted
current assets to current liabilities.
• A ratio above 1.0 indicates that the District has sufficient short-term resources to cover its
liabilities, reflecting strong financial health.
• A ratio below 1.0 signals potential liquidity concerns, suggesting short-term resources may be
insufficient to meet immediate obligations.
Generally, the higher the ratio, the greater the District’s short-term financial stability. Over the five-
year period shown in Figure 5, the District’s liquidity ratio was above 1.0 in FY 2020-21 and FY 2023-24,
demonstrating a stable ability to meet short-term obligations. In FY 2019–20, FY 2021–22, and FY 2022–
23, a liquidity ratio could not be calculated due to the District having no current liabilities. While the
ratio is technically undefined in these years, the absence of short-term obligations reflects an extremely
strong liquidity position, with no immediate financial risk.
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Figure 5: Liquidity Ratio (FY 19-20 - FY 23-24)
FY 23-24 13.65
FY 22-23 0
FY 21-22 0
FY 20-21 3.85
FY 19-20 0
0 2 4 6 8 10 12 14 16
Net Position
The government-wide financial statements utilize a net position presentation to assess the District’s
financial position at a specific point in time. Net position is defined as the difference between total
assets and total liabilities, and it serves as a key indicator of an agency’s overall financial health.
• A positive net position indicates that the District possesses more assets than liabilities,
reflecting fiscal health
• A negative net position may suggest fiscal distress or an inability to meet long-term obligations
As of June 30, 2024, SSJWD’s net position increased to $631,932, reflecting growth over the past five
audited years. This increase indicates that the District’s total assets exceed its total liabilities, indicating
the District is in a financially healthy state.
Table 4: Audited Net Position
5-yr %
FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
Change
Total Net
$426,513.00 $115,095.00 $190,013.00 $414,941.00 $631,932.00 48.16%
Position
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Sphere of Influence
SSJWD’s current SOI is coterminous with its service area boundary, as illustrated in Figure 6. The District
encompasses more than 108,338 acres in northern San Luis Obispo County. Because the District’s
primary role is to serve as a Groundwater Sustainability Agency, there is no logical way to envision
growth for the District. Accordingly, LAFCO will evaluate any SOI amendments or annexation requests
concurrently and on a case-by-case basis. Future amendments and or updates of the SOI shall only
include properties that have submitted written landowner consent. At present, one such request has
been proposed and is currently being processed. (LAFCO File No. 1-R-24 | Sphere of Influence
Amendment and Annexation No. 1 to SSJWD). Therefore, the District’s SOI and service area boundary
should remain coterminous.
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Figure 6: SSJWD Boundary Map Adopted September 2019
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DETERMINATIONS
Municipal Service Review Determinations
As set forth in Government Code Section 56430(a), in order to update the SOI in accordance with
Government Code Section 56425, the commission shall conduct a service review of the municipal
services provided in the County or other appropriate area designated by the Commission. The
Commission shall include in the area designated for a service review the county, the region, the sub-
region, or any other geographic area as is appropriate for an analysis of the service or services to be
reviewed, and shall prepare a written statement of its determinations with respect to each of the
following:
1. Growth and population projections for the affected area
The SSJWD serves a sparsely populated agricultural area in northeastern unincorporated San
Luis Obispo County, where precise population data is unavailable due to the District’s irregular
boundaries. Regional forecasts suggest slow growth in the broader North County region—
rising from 35,460 in 2025 to 36,961 by 2060 at an annual rate of 0.12%—with SSJWD expected
to remain low-density and largely shaped by land use and resource planning.
2. The location and characteristics of any disadvantaged unincorporated communities within
or contiguous to the sphere of influence
SSJWD's SOI and service area boundary includes one area that meets the definition of a DUC
as outlined in Government Code Section 56033.5. This area—Northeast County DUC Area #1—
is inhabited and has a Median Household Income (MHI) that is less than 80 percent of the
statewide MHI, qualifying it as a DUC. Although this DUC was identified, SSJWD does not
provide public facilities or services related to wastewater, municipal or industrial water, or
structural fire protection. Therefore, no infrastructure deficiencies affecting a DUC would
result from changes to the SSJWD’s SOI or service area boundary.
3. Present and planned capacity of public facilities and adequacy of public services, including
infrastructure needs or deficiencies
The District's main purpose at formation was to enable participating landowners to comply
with the Sustainable Groundwater Management (SGMA) Act by creating a water district that
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could also serve as a Groundwater Sustainability Agency (GSA) under SGMA. In addition to its
role as a GSA, the District is authorized to provide all services under Water Code Section 34000,
with the exception of exportation of water and sewer services. At present, it appears that the
District has the capacity to fulfill its responsibilities as a GSA under SGMA. As a member of the
Paso Basin Cooperative Committee (PBCC), SSJWD contributed to the development of the Paso
Robles Subbasin Groundwater Sustainability Plan (GSP), which was approved by the California
Department of Water Resources in June 2023. SSJWD has played a key role in advancing several
important projects and management initiatives, including an Economic Impact Study on
irrigated agriculture in the Paso Robles region, a Stormwater Capture and Groundwater
Recharge Feasibility Study, the development of a 3D Geologic Model, and the establishment
of a comprehensive groundwater level monitoring network. The District’s capacity is further
demonstrated through its participation in the GSP’s five-year evaluation, submitted in January
2025. Overall, SSJWD demonstrates adequate capacity to carry out its groundwater
management responsibilities under SGMA.
4. Financial ability of agencies to provide services
To assess the District’s financial health, key indicators, including Operating Ratio, Liquidity
Ratio, and Net Position, were analyzed. Operating Ratio, which compares annual operating
revenues to operating expenses, remained below 1.0 in four of the five years, suggesting stable
financial performance and a consistent ability to generate positive operating margins. Liquidity
Ratio, which measures current assets relative to current obligations, also remained strong
across all five years, reflecting adequate short-term financial health. The District’s Net Position,
representing the difference between total assets and total liabilities, increased by 48 percent
over the five-year audited period, a strong indicator of long-term financial growth and stability.
Overall, these financial indicators suggest that SSJWD is in a financially healthy state with
adequate financial resources to deliver its services.
5. Status of and opportunities for shared facilities
The SSJWD participates in the Paso Robles Area Groundwater Authority (Authority), which was
formed by a Joint Exercise of Power Agreement (JPA) in March 2025. The Authority replaces
the prior Memorandum of Agreement and establishes a formal structure for implementing the
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Groundwater Sustainability Plan. SSJWD’s participation in the Authority enhances efficiency,
reduces duplication of efforts, and strengthens the District’s ability to meet SGMA
requirements.
6. Accountability for community service needs, including governmental structure and
operational efficiencies
SSJWD is governed by a five-member Board of Directors, each elected to a four-year term. The
Board holds regular meetings on the fourth Wednesday of each month at 9:00 AM. The District
posts its agendas in compliance with the Brown Act and maintains an up-to-date website in
compliance with Senate Bill 929.
7. Any other matter related to effective or efficient service delivery
There are no other matters related to the efficiency of services.
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Sphere of Influence Determinations
In order to carry out its purposes and responsibilities for planning and shaping the logical and orderly
development of local governmental agencies to advantageously provide for the present and future
needs of the county and its communities, the Commission shall develop and determine the Sphere of
Influence of each local agency, as defined by Government Code Section 56036, and enact policies
designed to promote the logical and orderly development of areas within the sphere. In determining
the Sphere of Influence of each local agency, the Commission shall consider and prepare a written
statement of its determinations with respect to the following:
1. Present and planned land uses in the area, including agricultural and open-space lands.
The present and planned land uses within the service area of SSJWD are guided by the County’s
General Plan. The entirety of the District falls within the Agricultural land-use designation.
Reaffirmation of the District’s coterminous SOI is recommended.
2. Present and probable need for public facilities and services in the area.
Given the predominantly agricultural nature of the SSJWD and its primary function as a
Groundwater Sustainability Agency representation, there is no present and probable need for
public facilities and services in the area. The District’s role is focused on groundwater
management rather than direct service provision. Reaffirmation of the District’s coterminous
SOI is recommended.
3. Present capacity of public facilities and adequacy of public services that the agency provides
or is authorized to provide.
At present, it appears that the District has the capacity to fulfill its responsibilities as a
Groundwater Sustainability Agency (GSA) under the Sustainable Groundwater Management Act
(SGMA). As a member of the Paso Basin Cooperative Committee (PBCC), SSJWD contributed to
the development of the Paso Robles Subbasin Groundwater Sustainability Plan (GSP), which
was approved by the California Department of Water Resources in June 2023. The District’s
capacity is further demonstrated through its participation in the GSP’s five-year evaluation,
submitted in January 2025. The evaluation reported encouraging trends, including rising
groundwater levels attributed to above-average rainfall, enhanced data collection efforts, and
progress in policy implementation. To support long-term GSP execution and improve regional
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coordination, a new governance entity—the Paso Robles Area Groundwater Authority—was
established in March 2025 through a Joint Powers Agreement. This Authority replaces the PBCC
and will oversee GSP implementation, funded primarily through groundwater extraction
fees. Overall, SSJWD demonstrates adequate capacity to carry out its groundwater
management responsibilities. Reaffirmation of the District’s coterminous SOI is recommended.
4. Existence of any social or economic communities of interest in the area if the commission
determines that they are relevant to the agency.
There are no social or economic communities of interest within the District service area
boundary.
5. For an update of the sphere of influence of a city or special district that provides public
facilities or services related to sewers, municipal and industrial water, or structural fire
protection, the present and probable need for those public facilities and services of any
disadvantaged unincorporated communities within the existing sphere.
One DUC was identified within the SSJWD service area boundary, as seen in Figure 1. Although
this DUC was identified, SSJWD does not provide public facilities or services related to
wastewater, municipal or industrial water, or structural fire protection, and therefore, no
infrastructure deficiencies to a DUC would result from changes to the SSJWD’s SOI or service
area boundary. Reaffirmation of the District’s coterminous SOI is recommended.