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San Benito supervisors deny Sunnyslope water district tax-sharing agreement, direct staff to seek alternatives for existing homes

5958141 · October 14, 2025

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Summary

The board voted 3-2 to deny a proposed property-tax exchange tied to annexation for Sunnyslope County Water District infrastructure; supervisors split between concerns that the agreement would enable new development and arguments that it would improve water/wastewater for existing residents.

The San Benito County Board of Supervisors voted 3-2 on Oct. 14 to deny a proposed property-tax exchange associated with annexation to the Sunnyslope County Water District intended to enable installation of water and sanitary infrastructure.

The motion, approved by roll call, directed staff to explore alternatives with Sunnyslope that would allow connections for existing dwellings only. The recorded vote was: Supervisor Colin Kozmicki — yes; Supervisor Zenger — yes; Supervisor Sotelo — no; Supervisor Currow — no; Supervisor Velasquez — yes. The motion passed.

County staff and Sunnyslope representatives told the board Sunnyslope recently installed a $2,000,000 water line (described in the meeting as running from John Smith Road to Best Road) and planned longer runs toward Stonegate and Tres Pinos. Staff said the Department of Water Resources provided a $14,000,000 grant for the larger effort and Sunnyslope was contributing about $4,000,000, and the exchange would permit residents along the new lines to connect to a higher-quality water source.

Opponents on the board warned the tax-exchange would open the door to new development in rural areas lacking roads and services. Supervisor Zenger said he was concerned the agreement would encourage development in areas without existing infrastructure. "This would provide sewer services not for some homes that are out there, but this is for future developments," Supervisor Velasquez said during the debate, arguing the public needed to know the full implications.

Supporters said the agreement could protect existing residents from failing septic systems and poor water quality. Supervisor Currow described Tres Pinos as "in a dire situation" with wastewater systems that could contaminate local water supplies and said the county has a responsibility to ensure safe water and wastewater for current residents.

The board did not provide a dollar figure for any county funding obligation tied to the denial; the motion instructed staff to pursue options with Sunnyslope that would limit service extensions to current dwellings and to report back to the board.