General Managers Report

Staff Report & Agenda Item Details

13. General Managers Report General Manager Erik Kubinski provided updates on the following topics: a. Update on Lagom Ranch Permit P-20250112 — A contested case hearing is underway with 18 protestants. Submission briefs from protestants are due July 3, with attorney replies due July 8. A Zoom public hearing before Judge York is scheduled for July 20. The District has paid $3,500.00 in associated costs. The General Manager suggested revisiting permit fees to account for contested case expenses during the upcoming budget process. b. Update on Johnson City Permit P-20250028 — Johnson City's final demand submission requests an increase of approximately 22 million gallons per year, bringing their total permitted amount to 172 million gallons annually. General Manager Erik Kubinski stated the request appears reasonable based on projected meter connections, the recent aquifer test results, and the 20% planning margin. A draft Certificate of Phased Authorization (Phase 1) for Johnson City was included in the Board packet. The city is expected to conduct another pump test later this year or next, which may lead to a future request for additional volume. c. Johnson City, City Hall Meeting About Drought Stages — The District met with Johnson City officials to align drought stage definitions. The city's six drought stages roughly correspond to the District's four stages, though not perfectly. General Manager Erik Kubinski noted the city is legally bound by its Texas Water Development Board bond covenants to follow its conservation plan. Further discussions are planned. d. TAGD Spring Business Meeting and Public Funds Investment Training on June 2-3, 2026 — General Manager Erik Kubinski attended the Texas Association of Groundwater Districts spring meeting, where General Counsel Greg Ellis led a public funds investment training session using the District's policy as a model. General Manager Erik Kubinski is in the process of delivering the updated investment policy to the District's banking institutions. He also noted that current law prohibits investing in commodities such as gold and silver and indicated he intends to advocate at the state level for groundwater districts to be allowed to hold up to 5% of their portfolio in precious metals as a risk hedge. e. Update on TWDB 2026 GCD Grant Submission — The Texas Water Development Board staff has recommended approval of the District's full $180,000 grant request. The formal

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 2.1/10). Under the Bastiat Liberty Watchdog Index, measures that increase tax rates or fee schedules, issue new debt or Certificates of Obligation, expand regulatory/zoning restrictions on private land use, or authorize unbudgeted spending expansions reduce an official's Freedom Score when voted YES (and reward dissenting NO votes).