Valley Water's incoming chief executive, Aaron Baker, has donated to two candidates running for seats on the agency's governing board just weeks before he takes over as CEO in January. Campaign filings dated October 22 show Baker gave $499 to District 1 incumbent John Varela and another $499 to District 6 candidate Milan Balinton, donations that are drawing scrutiny from a government ethics watchdog, who said they did not appear to be illegal.
The donations were first reported by San José Spotlight, which also found that Valley Water's Chief of External Affairs, Rachael Gibson, contributed nearly $770 to Balinton's campaign. Baker, who currently serves as Valley Water's chief operating officer after 25 years with the agency, is set to become CEO effective January 4, 2027, following a board appointment confirmed in a Santa Clara Valley Water news release. Varela did not respond to questions about receiving a $500 contribution from Baker, according to the outlet's reporting — a discrepancy with the $499 figure cited elsewhere in the same filings.
Baker Says Donations Were Personal
Baker defended the contributions as a private citizen exercising his rights, not an executive seeking influence. He said he made the donations in his personal capacity, on his own time, and did not seek or expect special treatment or personal gain in return.
Balinton, who leads the African American Community Services Agency and is running for the open District 6 seat, said he was unaware of the donations from Baker and Gibson until they were brought to his attention. He said he remains committed to separating the difference between a contribution to his campaign and a decision that will be made by him as a director. Balinton's District 6 opponent, Phuong Nguyen, a field officer for state Senator Dave Cortese, said he was not bothered by Baker's donation to Balinton because Baker has a right to donate.
Ethics Watchdog Flags Conflict-of-Interest Risk
Sean McMorris, transparency, ethics and accountability program manager at Common Cause, told the outlet that it doesn't appear to be illegal for top Valley Water staff to contribute to campaigns, but said the practice is not best practice and raises conflict-of-interest concerns. McMorris's comments reflected his own assessment as a watchdog representative, not a formal ruling.
The donations land in the middle of a competitive election cycle for the agency, which Bay Area News Group describes as a government body providing drinking water and flood control to 2 million people in Santa Clara County. San José Spotlight reported that four of the seven seats on the Valley Water board are in play on Nov. 3, with competitive races concentrated in Districts 1, 6 and 7, while a separate Bay Area News Group / The Mercury News report described three of the seven seats as up for re-election this fall. The two accounts differ in how they characterize the number of seats involved.
Money Flows Into Three Contested Races
In District 1, which covers South County, Varela — director since 2015 — is being challenged by Jimmy Forbis, a former Gilroy city manager. Varela has received about $2,050 in donations, while Forbis has pulled in nearly $3,200 and taken out $3,050 in personal loans, per the same San José Spotlight account.
The District 6 race, covering east and south San Jose, pits Balinton against Nguyen for the open seat. Nguyen has raised nearly $36,300, the highest total of any Valley Water candidate this cycle, including donations exceeding $5,000 from a Google director, Willco Property Management, Speed Construction and Development Inc., and AlphaX RE Capital Inc. Nguyen, who says he would be the first Vietnamese American to run for a Valley Water seat, said his run and any seat he might win are not for sale, and he wants to implement programs to help low-income families save money on water bills. Balinton has received $34,655 in donations plus a $100 personal loan, including $5,900 from the American Federation of State, County and Municipal Employees Local 101, according to campaign filings cited in the reporting. Both candidates named water bills and affordability among their top priorities, with Balinton saying his priority if elected would be to lower water bills.
District 7, which stretches from West Valley to Palo Alto, features first-term incumbent Rebecca Eisenberg, on the board since 2022, facing Los Altos councilmember and former mayor Pete Dailey. Eisenberg has received about $2,660 in donations and taken out $38,000 in personal loans, including $1,000 from the Plumbers Local 393 Political Action Fund Small Contributor Committee. Dailey has received $13,600 in donations and taken out $80,000 in personal loans, with a combined $3,750 from AFSCME Local 101 and Council 57.
A District Still Shadowed by Past Controversy
The election arrives against a backdrop of recent turmoil at the agency. Rick Callender resigned as Valley Water's CEO earlier in 2026 after an outside investigation found he had sexually harassed two female employees, and the board subsequently hired Baker as his successor. Separately, Valley Water had sued director Eisenberg in April 2024 over the removal of a confidential report, and former director Gary Kremen quit his 2022 reelection campaign after an investigation found policy violations. Board chair Tony Estremera's term is also ending. Jim Beall is running unopposed in District 4, and the agency, Santa Clara County's largest water supplier, operates on a $1.2 billion budget with roughly 900 employees.
