City Council - Regular Meeting

people out. Thank you. Good evening everyone. Uh, I'll call tonight's meeting into order. It's our regular city council meeting for February 17th, 2026. Let's stand and proudly recite our pledge of allegiance. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

Um, madame clerk, would you kindly do roll call, please? Council member Brando Cruz here. Council member Melissa Lamatina here. Council member David Oro here. Vice Mayor Mark Joseph here. Mayor Pierre Washington

here. And thank you Teresa. There is no close session to report out this evening because the council did not convene for a close session uh this evening. So, we'll be moving on to our proclamations and presentation. Tonight, we have one proclamation. No, no presentations. And I'd like to call up those who will be receiving the proclamation on behalf of Ramadan. So, you could all come up.

Hello. How's everybody doing?

Very good. Very good. Well, uh, honored, honored, mayor, respectful, uh, city council, distinguished guest, thank you for having us. It's a great honor to h to be here tonight. Um, today is actually the first night of Ramadan. Um, with that being said, um, Ramadan as Muslims, we fast from sundown, from sunrise to sundown. And it's more than just fasting. For us, it's having or being connected with God, Allahh. Right? So, when we are fasting, we're supposed to have empathy, right? We're supposed to have care for our neighbors and our fellow humanity. As well as um constantly abstaining as we abstain from food, we should also abstain from arrogance, from anger, from injustice and take everything to consideration, take everything not for granted. You know, this time that we have on earth is a trust. So we use that time, right, to do the best that we can to give back to humanity, right? So with that being said, um it is a great honor to receive this proclamation. We are very grateful for this proclamation as we are your neighbors. You know this uh our differences also make us unique and unites us and we're very grateful to receive this proclamation and thank you on behalf of the Muslim community of Vallejo and of California and America in general. Thank you so much.

Thank you sir. Well stay up there. Stay up there. Now I'm gonna read the proclamation and then your family and all we all come forward and take a photo. Uh city of American Canyon proclamation acknowledging the Muslim holy day of Ramadan. Whereas Islam is one of the world's major religions and part of the of our shared human heritage. Whereas California Muslim community is one of the most diverse in the nation with ethnic and cultural background that span the globe. And whereas Muslims have a long history in the United States spanning back to the slave trade in which 10 to 15% of the enslaved African women and men were said to be Muslims. Whereas Muslims have long served in the nation's armed forces and fought in all major United States wars from American Revolution War to the modern conflicts today with some Muslim Americans making the ultimate sacrifice in combat. And whereas Muslims have contributed to social movements throughout the history of the United States to work towards justice and fair inclusions for all. And whereas from the early days of the pioneers to the present- day leaders, Muslim Americans have played a significant role in the history of the state's economic, cultural, spiritual, and political development. And whereas there are approximately 1 million Muslim Americans across this state contributing to the its economic, social fabric, and multicultural and and plurism traditions. And whereas the Muslim residents of this state with their hard work and contributions to medicine, science, information, technology, education, police, military, and many other fields have benefited from the

enriched state open tolerance of an economically vibrant environment. And whereas Ramadan is holy month of fasting, a time to reflect spiritually, build communion, and aid those in need and mark an annual spiritual renewal for each individual. A reason to celebrate and express gratitude in this month. And whereas the observance of the Muslim holy month of Ramadan commenced at dusk on February 17, 2026 and continues for one lunar month from sunset from sunrise to sunset each day. Now therefore, I, Mayor Pierre Washington, on behalf of the American Canyon City Council, do hereby acknowledge the commencement of the Ramadan and express our deepest respect to Muslims across California and around the world. on this significant occasion.

Thank you, sir. Appreciate it.

And now we'll come up and take a picture. Are we One more.

Thank you. How you doing? Good to see you. How you been?

Just busy running around.

Absolutely. Just tell me how many you need and I'll if you need five of them, I'll get you five of them. Just let me know and I'll print them tomorrow and I'll deliver them to you. Does he need more copies? How many? Five. Okay. Um, are you the one we should call when when they're ready?

Of course. Just shine. Does that happen to you? It does.

Like look at him. Good night. Thank you. Thank you.

Thank you everyone. At this time, I'd like to open up public comment for items that are not on tonight's agenda. Uh we have some speaker cards that we will collect and um after the people inside the room have their opportunity to speak we will go to online. So madame clerk do we have any cards? Um yes and before I call them I just want to note that we received one written comment for a non-aggenda item. It should be you guys have it. You received it immediately online and there are copies printed on the um on the sideboard there. Uh the first person we're going to call is Janette Go.

Good evening, Janette. Good evening, Mayor Washington, City Council members, and members of the public. Um, tonight, my name is Janette Uh, tonight I would like to focus my comments on the recent retreat of the city council. I was unable to attend the meeting, but I'm using information from the American Canyon current newsletter. Um, it was it was noted that the necessary signatures needed for measure L was obtained. This could this could mean you can't hear me. It's on. Okay. Can is that better? Yes. Can you speak a little louder? That would be um I'll try. Thank you.

It it was noted that the necessary signatures needed for measure L was obtained. This could mean that the city council can decide what should happen to the property at 1661 Green Island Road. This could mean that the property, which is agricultural open space, can be changed to industrial. I'm asking you, as I have in the past, to allow the voters of American Canyon to decide to make that property industrial or keep it open space to be conserved. In 2022, voters rejected Measure J, which is very similar to what Measure L was. Ignoring the will of the people once again would constitute a violation, I feel, of public trust. As I read the news article regarding this topic, the word compromise was used over and over again. First of all, who decides how much of the 157 acres can be developed and how much can be used for industry? Do we know if half is good enough? How do we know how much can be conserved without proper studies done by independent envir environmental scientists? Why do we start with a compromise? And why are we in such a rush to compromise when we are talking about the land that is the habitat for many different kinds of wildlife, an area that is prone to sea level rise and a desirable place for people to enjoy. Why are are we risk risking a compromise before we have facts of the environmental impact on development? There was a comment by um council member Mark Joseph that says the property owner is receptive to some kind of solution that doesn't force him to double down on an initiative. I'm sorry I don't I didn't understand that comment. Um and Mayor Washington said no one loses and no one really wins but it is private property. I take issue with this statement. The environment, the plants and animals and the people who enjoy the area I feel lose. I believe the property

owner will win. Again, council members u council member Lamentina wants compromise. Council member Oro was okay with leaving the property as is. Why can't we do this and have the property properly evaluated for its value as an environmental treasure rather than a short-lived revenue gain? That's all. Thanks for listening.

Thank you, Janette. Um and for the record, I I typically don't do this or say this. Um, but I need to make sure that for the integrity and protecting the integrity of of this council, uh, we never did say that Measure L had the signatures that were needed. That was a mis misrepresentation of what occurred. That's fine. That's fine. I'm not trying to open up a dialogue. I just want to make sure that there are other people listening and what I don't want to do is confuse our city. Okay, fine. I just That's fine. Thank you, Janette. I just want to make that for the record. Next speaker.

I have Karina Cvente. Hello, Karina.

Good evening, Mayor, Council, and staff and um folks here. Um, the reason I'm here is because, um, I don't know if you knew, but American Canyon High School has the only theater venue in town where you can actually go and and see an actual play or musical. And so, here is Matilda, the musical that is gonna be playing um, this weekend and next weekend. And so I want everybody to come. Um also um did you know that um Matilda the musical the ensemble and the actors are from our elementary, middle, and high school. So it's one of the u few times that that's happened. And so you get to see this little future actors uh you know give it their best. These students have been uh rehearsing for uh months uh four five hours uh after school. A lot of them are A and A+ students. Um, so they not only do the whole um day at school, um, they take AP classes and do a lot of extracurricularum activities and then go rehearse a play or a musical and then um, and still have amazing grades. So um, we're officially inviting all of you. Hope to see you all there. Um and if any of the businesses here present or in uh Zoom land are listening uh the theater program also

will welcome your sponsorships. So um here's the poster. Hope uh uh director Holi can put it up in you know somewhere here and then there's a QR code where you can buy your tickets. There's there are two madness. Um then Sunday the 2 uh 2nd and I think March 1st is the other Sunday. Um at 2 p.m. And then the rest of the um ones are um at 700 p.m. There will be if anybody knows about Matilda the musical, there's a famous chocolate cake scene. There will be uh chocolate for sale chocolate cake for sale there as well. and uh lots of uh treats to support again the theater program and support the students here at American Canyon High School and American Canyon you your city. So, thank you and uh I should just leave it here. Right.

Yep. Perfect. Thank you, Karina. Happy to share it. Thank you. Got my tickets. Karina, good job. Who else? Who else? Not yet. I have no other uh cards for in-person comment. I do have hand raised online if we're ready for that. Yes.

Okay. I've got Karen Fritz. Go ahead, Karen. Well, good evening, mayor, council, staff, and general public. I just wanted to give a big shout out to Ally and her team down there at city hall for jumping on my request for my refund from the uh reindeer hideandsek program that they put on annually in December. um she got a hold of her people, her people got a hold of me and they took care of it just lickety split and I was very appreciative of that. Thank you so much and hopefully we can get the program fixed so it's not a problem anymore. But thanks again Ally.

Thank you Karen. See I've got I have no other hands raised. Thank you. Uh, I'll close public comment and move to agenda changes. Um, are there any agenda changes, council? Seeing none, I will accept the motion to accept the agenda. I I'll I'll move to Were you adopting the agenda or the the consent items? Yeah. Okay. Uh to uh adopt the consent calendar. I'll second. We have a second. Madam clerk, can you do a roll call, please?

Council member Cruz, yes. Council member Lamatina, yes. Council member Oro, yes. Vice Mayor Joseph, yes. Mayor Washington, yes. Okay. Next is public hearing. We actually do not have any items on public hearing. So we will move on to the business item. We have two business item. Item number six, the annual comprehensive financial report and year and financial results by Jim Cruz.

Hello. Good evening. See, good evening, mayor, council members, and American Canyon community. Uh, I'm Jim Cruz, the finance director, and tonight I'm pleased to present the city the city's annual comprehensive financial report or ACER and um the fiscal year 2425 year end results. The report covers the period of July 1, 2024 to July um to June 30, 2025. The ACTER is a comprehensive document containing introductory, financial, supplemental, and statistical sections. It includes the independent auditor's report, a management discussion and analysis and the basic financial statements, notes and required supplementary information. Um, first of all, I want to thank our audi our external auditors Siobhan and associates, our finance staff for their work in preparing the year's report and all the departments for the cooperation and prioritization of getting all of the deliverables to the auditors. I'm pleased to share that the city received an unmodified or clean audit opinion, the highest level of assurance an auditor can provide. This means the financial statements fairly represent the financial position of the city in accordance with um GAP which is the generally accepted accounting principles. As a reminder, the acter contains extensive required disclosures and gazsby pronouncements and the introductory section includes the city manager's trans transmittal letter summarizing the year's accomplishments and economic outlook.

We did have a couple of audit issues. So we had three significant deficiencies um but no material weaknesses. Material weaknesses um would mean that the financial statements are not um um do not show significant or do not show um that the report is um is clean. So we didn't receive that but we did receive three significant deficiencies in our procedures. Um so um one of them is related to our closing entries after we gave them our final trial balance. We still had 22 adjusting entries. Um and that is a decrease from the previous year of 30. Um the second one is related to our schedule of federal awards. Um we had reconciliation issues and we received a um an invoice after our period of availability um that we had to acrewue after we had already submitted the SIFA report. Oops. And um the other the last one is related to the Kukak or the California Uniform Construction Costing Commission um and our procurement process. So their recommendations include improving the timeliness of the closing entries, reconciling the CIFA routinely and ensuring training for all our staff involved in the procurement process. And we've already implemented corrective actions. We've developed a closing checklist with clear assignments and deadlines and will conduct final review before audit submission. And we've corrected the SIFA errors and a review process is now in place. And we

are instituting annual procurement training to ensure full CUKAT compliance. So for the governmentwide results, citywide total net position increased by $9.6 million. The governmental activities increased by 12.5 million while business type activities decreased by 3.1 million largely due to transfers to capital projects. Citywide assets and deferred outflows exceed liabilities and deferred inflows by 48.6 6 million and of this amount 332.2 million is related to government activities and 76.4 is business type and the city has 18.9 million in unrestricted net position. Governmentwide reporting uses full accounting uh full acral accounting and includes all the city funds except fiduciary funds which is um funds that belong to other entities that the city manages. So our government uh this slide shows the government governmentwide net position chart and it shows the split between the government and business type entities that I had just mentioned. The governmental activities are primarily supported by taxes and intergovernmental revenues while business type activities like water and sewer are supported by user fees. Okay, this slide shows the audited actuals. The general fund ended the year with a net loss of 120,000 um but this includes 154,000 in one-time capital purchases um such as the the safe house and the

water filling stations. The special revenue funds include gas tax, measure T, the fire district, um, and grants. And the capital project funds include impact fees and capital improvement funds. Okay. the fund balance and net position. We saw $1 million net loss citywide, but also significant additions to capital projects which affect the final net position numbers. Okay. And then the balance sheet, this is basically a summary of what we own and what we owe. Um and so you'll see that the the final um citywide total net position we owe we own 130 million more than we owe. Okay. So governmental fund balances ended the year with 51.8 8 million in fund balance which is an increase of $1.5 million. The breakdown um for the this fund balance has 33.9 million in restricted meaning they have externally enforcable limitations. So we can't really do anything with the amounts that are in there except for what they are meant to be used for. Um 14.2 2 million is committed funds and are set are usually set by council such as contingency reserve and capital project reserves and then um assigned funds reflect the city council's intended purposes which

is 3.5 million and then um the unassigned is the all the remaining categories after all of those other um after the residual money is um set aside And so of the 0.2 million in unassigned, 2 million is general fund unassigned while there is a negative 1.8 in grant funds that we'll expect to receive um this year in fiscal year 26. Okay. For the general fund results, the general fund revenues came in 2.3 million below the final budget. primarily due to um lower uh lower property tax toot and permit revenues. But um on the flip side, on the expenditure side, um there was a $2.8 million um below the budget um savings largely due to um savings in community development and developer billings. And the final net change in fund balance was um uh the that 120,000 as mentioned in the prior slides. So even with the slight decrease, the general fund met the 25% contingency reserve um requirement and the fund balance ended the year at 11.44 44 million down slightly from the prior year's 11.56 million by that 120,000. Um the other assigned um include a pension pension stability or stabilization fund um public safety and community developments. And then um the unassigned at 1 point uh almost 2 million

Okay, for the water enterprise funds in the water fund. So the revenues were 11.6 expenses at 9.4 contributions and transfers at 3.8 million um leaving the net position change to be 1.7 negative 1.7 million. Um and so looking at only the operations, it actually had a net income of 259,000. um but with transfers out which included um 1.5 million to the general fund for support services um point4 million for legal services and um there was 4.5 million to capital projects for the Benton Way Knightsbridge and Rancho Delmare that occurred during the year. Um so the net position for the water fund is 43.7 million and this includes 8.6 in unrestricted fund balance. Okay. And then um 9.1 was restricted to the capacity fee fund. Okay. Moving on to the wastewater enterprise funds. Um, in the wastewater fund, the revenues were 5.7 million and expenses were 6.5 million with transfers out of 39,000. Um, leaving a net position change of negative.5 million. Um, so the c the capacity fee revenues were $2 million, but transfers out included a 1.4 million for support services that resulted in the net loss. The net position totals 33.7 million with 8.3 in unrestricted and um.9 in capacity fees and then the

rest is the net investment in capital assets. Okay. For the recycled water funds, uh revenues were 283,000 with expenses at 1.2 2 million and net transfers at 230,000 um in leaving a change in net position of um negative655,000. So this fund continues to rely on transfers including 503,000 from the zero water footprint fund partly offset by a 273,000 transfer to the general fund for support services. Um, and so that's where the 230 comes in. Um, so the net position is currently at 777,000 with most of its net position being in assets. Okay, so this last slide um includes all of our capital assets that are in the system. Um so there was a large um large activity in the capital assets when you look in at when you look at construction in progress um there is a 47% increase and then um and all of the um buildings improvements machinery equipment all show positive percentage change from last year to this year. So the city was really investing in infrastructure um for the year. And so that's where we ended fiscal year 24.

Thank you for your presentation, Jim, and for the report on the external audit. Um turning to council. Any clarifying questions from council? Council member Oral. Yeah, I just have a clarifying question. Can you go back to the audit report slides, the sub substantive but not material section? And that just kind of stood out for me in the report. Uh significant deficiencies is the word, not substantive.

Um material I would think would have a financial impact. significant has that but for the general public and just for me in general what quant how do you describe significant and what's the difference that between material

so material does have financial impact like to the financial statements and significant deficiencies it has to do with our processes because part of the audit also looks at our processes so they um they looked at like the closing entries meaning after we gave them our final trial balance we still had adjustments that we had to make to them when we found um you know issues with acrruals and things like that. The other one was our SIFA where um we received an invoice that also didn't get acred um on our schedule of federal awards. So it's more processoriented with um their their recommendations and then we uh reply with corrective action.

Thank you for that. Mhm. Uh, Vice Mayor Joseph. Yes. I not on what you talked about, but I was reviewing the GAN limit just because that's the kind of guy I am, but it was odd. So, they went through the calculation said, "Okay, this is your new GAN limit." But normally the followup is, and here's the taxes subject to the limit, and here's why you have loads of money to to spend if you had it. These don't have that part. They just said, "Here's your limit." End of discussion.

Yeah, we usually have the actual the calculation um during the budget the budget process in June when we actually bring it to council and it shows the um it shows that part where it has the previous year's um GAN limit and then the price and population factors that show us how much we can increase. And then um we go through the budget and see. And so what they look at is our calculation to see if it's correct or if it's accurate.

Okay. Well, then the follow-up question is given that limit are did our taxes and share of interest and so forth, are they well within the limit? Yes, they're um they're well within the limit. Usually it's like millions under the limit. Yes. So, we could make out like bandits and still not have to worry about the GAN limit, right?

Probably a poor choice of words. Uh, okay. Um, the other was in the water enterprise fund, and this isn't an audit question, so probably the manager will jump in, but we've lost a couple of major water customers. And if we're lucky and we start enhancing our recycled water, that's going to take uh potable water sales away. So, are we doing anything to kind of say four or five years out, you know, where are we at in revenue? I mean, historically, we've been focused on conserving water and we're suddenly doing an, you know, too good of a job and I'm a little concerned that our revenue stream might start drying up just to belabor a pun. So, I'm just wondering if staff has been given any thought to, you know, what's out on the horizon in terms of the water fund.

Yeah. And this goes for all of the um all of the enterprise funds, water, wastewater, and recycled water. So, I was taking a look at a lot of all of the um all of the expenditures and like the and the net loss that's occurring and was found that there were a lot of one-time items. So, we're heavily um so in our capital improvement program, there's several um projects for water and wastewater there and recycled water that weren't there five years ago. And so, um you know, we're and so those are considered one-time. So, at least it's kind of it's not like an ongoing issue. And we do have um you know all these utilities they undergo routine rate studies every at least every three to five years. I think now um the current rate we're at is set to be um the the you know those rates until 2028. Um but you know going into a rate study we we start preparing you know we probably start preparing next year already for for that and then um and so those things help make the the rate adjustments. um you know, kind of not fix but address those those structural issu um that might occur um as as we go through the the years of a rates of a rate um like happening in the in the um in the enterprise. The key thing I would add um vice mayor is you bring up a a very good big picture point not necessarily related to this audit but overall um you know the the stability of the enterprise funds certainly there'll be more information that comes forward in the in the next budget cycle here over the next couple of months but also as it relates to the

sites reservoir project specifically so um we're looking at that project and what that means we're looking at current water revenues current customers future customers we're also in the process of updating our water management plan on the heels of the update to the general plan. So, all those things are kind of combining together. Uh you're right to to recognize our largest water user closed when Coca-Cola closed. Um they are looking at repurposing that building and selling that building. And so, um we're anticipating another uh customer will come in there and and perhaps be as robust as the prior one. So, all those are factors and it's a good it's good point to raise. Okay. Thank you. That's it.

Okay. Thank you, Jim. Thank you, Mr. Holly. Uh, now I'll open it up for public comment on item six. Uh, madam clerk, do we have any speaker cards? I have no speaker cards. No. No hands raised online. Thank you. Thank you, Jim. We'll close uh item six. Basically, and return back to um council. Uh this is more of a there's no action from the council. It's just uh director Cruz is providing information for a read and file. Correct. Yes. Okay. Yes. So then we'll close this um and we're going to move on to item number seven. So don't go anywhere,

Director Cruz, because item seven belongs to you as well. Uh city year 202526 midyear budget amendment.

Yep. So, now that we've gone through the um end of fiscal year 25, um we're going now into this fiscal year of fiscal year 2526. So, tonight, this is the midyear budget update and adjustments um for approval. And um so as a reminder, the city adopts the annual budget each June and the midyear update allows us to refine our revenue and expenditure estimates based on actual trends and the workload. So during this process f finance meets with the departments to account for the completed ongoing and any unplanned work improve the accuracy of our year-end fund balance projections and incorporate the results of the 202425 audit. Okay, a quick refresher on the fund types. So we were we will look at the general fund which is our main operating fund and home to general revenues such as property tax, sales tax, TOT and permits, the enterprise funds, water, sewer and recycled water and these operate like businesses that must cover their full costs through fees. The internal service funds um are the building maintenance, fleet and IT and legal and these funds should break even over time and special revenue funds where um our revenues legally restricted for specific purposes such as gas tax, LLADs, grants, measures um U and measure A. And so our primary goal is our is to still have a balanced general fund and continued compliance with the reserve requirements and long-term fiscal sustainability across all the funds. So the general fund shows um that for

this midyear we're increasing uh revenues by 873,000 and expenditures by about 670,000 um result resort resulting in a restored net operating surplus of zero up from the dep def deficit of 203,000 before the midyear review. So this also includes fund 105 um which is the developer project activity and in and um that functions as an extension of the general fund. So here are the details of the 873,000 and in revenues and the 670 in expenditures. So the one the um first there's the 160,000 legal revenue coming from the water enterprise funds and that has a direct cor um correlation in legal expenses um related to water litigation. Um and then we also see an increase of 150,000 in sales tax compared to our projections at the beginning of the year. Um and there's 97.5,000 um in developer billing reimbursement increases and that's also has uh a expense uh offset. Um, we also saw 50,000 increase in parks and recreation revenue um specifically to the WK classes and the adult adult activity programs and um 50,000 in property tax which that is a one-time increase um for prior year property tax that fluctuates and um an increase in 50,000 for encroachment permits and a 28 85,000 transfer in from measure U um that

corresponds to an expenditure in the streets maintenance department. So of all of these revenues um the ongoing uh categories would be the parks and recreation revenue. Um we're seeing more activity so that's probably going to be something that's ongoing and going into future years. as well as the encroachment permits. There's we've we're seeing a lot of activity um this year. So, we had we had to increase that one because it's actually already met the budget. And so, yeah. And then moving on to the expenditures. So, a lot of these are well, all of them, I think, are one-time expenditures. Um the general fund payment to the legal ISF um of 168,000. So the legal ISF had a negative fund balance which we thought it was appropriate to do the clawback now during um before we go into the new fiscal year. Um and then there was 160,000 in the legal expenses and then related to water. So that had that offset in the revenues. Um 100 parks maintenance had 128,000 increase and this is a one-time for tree removals and sign updates of 200 signs and then um 75,000 in develop developer billing expenditures directly related to the developer billing reimbursements in the revenues portion. um when we paid the insurance premiums um we saw a 194,000 reduction in um in our projection when we tend to budget for the insurance and the JPA the um the insurance says you know between this percent and that percent we tend to go

on the conserv conservative side um just to make sure that we don't fall short um during during the course of the year. Um and then um the expenditures for the 285,000 that's coming from measure U is going to be in street maintenance. And this is for one time Green Island road repairs and um lighted crosswalks on Broadway or rapid flashing beacons. I learned a new word. Okay. So for our special revenue funds, which is the grants and the special taxes that um can only be used for specific purposes, we have an increase in revenues of about 2 million and this is related to a state grant that we were approved for um of $1.3 million. So, we have a capital improvement project um the wetlands restoration and improved access that we were planning on starting in fiscal year 27 but that has been um moved to this fiscal year because we received we were approved for that grant. Um the other funding source for that is a capital um improvement plan the parks the parks impact fees. So you later on you will see the effect of moving that CIP to this year on those funds as well. Um the other increase in revenues have to do with um our close out of our home grant program. So that closed out in October and we have submitted all of our draw requests to HCD and so we anticipate 535,000 in um additional revenue for that and um 193,000 has to do with federal grant

claims from last year that um like additional additional claims that we expect to receive this year too. on the expenditure side. So in the grant in the same grant funds um we have this year though 1.2 in the wetlands restor the wetlands restoration project. So that is the that measure AA grant and then um 331,000 that was left over from prior year of the general plan um update. So that was a correction to the contract that um didn't get rolled over. So this is correcting it now. And then um that 285,000 coming from measure U to go to the general fund. Okay. For the capital project fund. So it's a lot that um CIP again the wetlands restoration. So, um, in revenues, the wetlands restoration is going to see a total of 1.5 million coming into the CIP fund that pays for for that project. And, um, but that is offset by a 1.2 million reduction in impact fees. Um, so this is across all of the impact fees, the parks, the um traffic uh and I think there's affordable housing as well that um and it is due to um projects that are currently on hold and unlikely to be received this fiscal year. Um on the expenditure side there's um again in that because because the capital um capital fund is in this group

of of funds. It's the 1.5 million for that wetlands restoration and um then 227 for the parks impact and that also like is going to be a transfer to that other general fund. So, it's a it's it's an additional expense to the park's impact fee for um doing that project as well. Okay. on the water for the water enterprises. So we see um an increase in revenues of 198,000 and um that is from revenues that we've actually already received um more than what we budgeted. So, we received 170,000 from the Water State Resources Board and 28,000 um that we charged for reimbursements for repairs to um like damages that to hydrants and and things that um that we build for. And then on the expenditure side, um it's 120 thou 29,000 increase. Um so it's that 160,000 related to the um legal expenses that are going to get transferred to the general fund. Um 75,000 in major equipment and um 100,000 in salary savings

are offset by 100,000 100,000 in salary savings. Okay. So that was the operations side. Um and then so this is the rest this slide covers the rest of the water enterprise. So this includes the capacity fee fund, the CIP fund and um debt service fund for the water enterprise. And um we only have a um an adjustment to the revenue side um which is a reduction in the water capacity fees for those um projects that were delayed mentioned earlier. Oops. Okay. Um the next one is the water enterprise operations. Um so for that one we um there's no adjustment to the revenues and the 53,289 um increase is mainly related to permits tariff corrections um and partly offset by salary savings. So the corrections and increases um totaled about a 100,000 or 150,000 and then the salary savings was about a 100,000. Okay. And this slide is for the wastewater enterprise other funds other than operations. So this is also the capacity the CIP and um any debt service and we also um had a reduction in the revenues due in the sewer capacity due to those um project delays.

Okay. And then in the recycled water enterprise um the adjustment is about 17,000 and that's mainly due to salary savings. Okay. So, our internal service funds, so these are the funds that I mentioned earlier. Usually, we want to break even on those. Um so we saw proposed revenues of 281587 and that is related to the um the clawback of the for the legal ISF funds um to to go back to zero. Um and then the 468,456 proposed adjustment to expenses um are related to the four um ISFs as followed. So for building maintenance, it's 126,000 and that is due to the janitorial contract um and supplies for the two new park restrooms. 37 fleet maintenance includes one PD bike replacement and one truck and then 25,000 for information technology is um is a correction for prior invoices um and 180,000 in legal services due to additional legal costs. So the building fleet and IT uh ISF funds have a positive fund balance. Um so they are able to to absorb those increases. And so that is the end of the budget adjustments.

Wow, Jim, that was a lot of stuff. Um I have actually two questions. One's a general fund question and the other is a capital project question. Um on the general fund, are the increases in the general fund revenues and expenses expected to continue next year or this just a a one time bill?

Um most of them are one-time, but I I think the parks and recreation revenue increase that we saw and the encroachment um permit fees um we'll probably see next year with the increase in um like the activities going on in the city. And I've been doing for encroachment um because that is directly related to construction that's happening. And so um looking at previous years, I did take an average and um so this year far exceeded it. Um and with the ongoing construction, I'm thinking next year we'll probably see it too. We usually do like a three-year average when we do the budgeting.

Okay. And then my second question, if I could read my own notes, um what are the main projects causing um the increase on the capital project expenditures and are those costs fully funded? Yeah, so the um main project is that wetlands access and restoration project that we moved from fiscal year 27 to be um happening in fiscal year 26. And that is due to the um due to the grant that we were um able to secure and then um a little bit coming from the parks impact fee which has enough um in that fund to fund fund the project.

Okay. Okay. Thank you, Jim. Um are there any other clarifying questions from council? Vice Mayor Joseph,

I have a couple. Uh, first of all, a shout out to recreation for the increase in the revenues because a few years back I had my doubts about some of the revenue estimates. So fair is fair. You've done a good job. Uh, and then the second one is also offscript. Um during the finance committee meeting, we chatted a little bit about fiscal policies and we had kind of a question for the council and and that was as we go through the fiscal policies and make revisions, does the council want to see it all at once, you know, all at one time and digest it and deal with it at once or would you like small bites of fiscal policy? And so I didn't see it in the staff report, so I thought I'd just throw it out there, get council reactions.

And I'm going to mention that the vice mayor and I are both at two ends of the spectrum. You know, I kind of want everything in one lump sum. He wants the weeds. So we just kind of want to make sure from the council what you guys, just to clarify, it can go either way because I'm going to get in the weeds. Whether you do it all at once and you just come in with a sleeping bag or you do weeds a few minutes at a time, it's your choice. I I'll start with council member. It's a oral. What you what you how you like to receive it? I I think either way is totally fine. Like if you start at the top, I knew he was going to get in the weeds, so I was just waiting for it. Right. Yeah. Council member Lamatina.

Yeah, either way. I'm more of a lump sum, but I can adjust. I feel you, Council Member Cruz. Same. I'm more of a lump sum. I'd like to see it all. Then I could have more time to digest the uh the information and the material, but I'm good either which way, but I'm leaning towards a lump sum. Okay. Like Vice Mayor said, he's going to be in the weeds. Yeah. I just just want to be clear. Okay. Any other clarifying questions? No, I think that was it. Um if there's no other clarifying questions, I'll open it up for um public comment for item number seven. Madame Clerk, any any I have no uh no cards for item seven and no hands raised online.

Thank you. I'll close public comment, return to council for um any further questions or accept this motion. I will accept the motion to adopt the resolution. If there are no other questions, I move that we adopt a resolution of the city council of the city of American Canon approving the mid-year budget amendments to the operating budget for the fiscal year 2025 2026. I'll second. Thank you. We have a second. Madam clerk, can we get a roll call, please?

Council member Cruz. Yes. Council member Lamatina, yes. Council member Oro. Yes. Vice Mayor Joseph. Yes. Mayor Washington. Yes. And thank you, Jim. Uh, now for our manager and staff oral reports. Mr. Holly, our deputy city manager Kea has some updates about what's going on around town and some other things probably.

Good evening, mayor and council. Um we are kicking off the next couple weeks with our state of the city road show. If you have not seen our city manager updates, uh we have uh a couple town hall meetings next week. Starting off with February 25th, we will be doing a town hall meeting at Canyon Oaks Elementary at 6:30 p.m. at the multi-purpose room. And then the following day on February 26th at 11 a.m. at the Adult Activity Center. Um and then uh we are happy to report that the 2026 State of the City annual report will be in your mailbox hopefully in the next couple days. It looks just like this. Um it is also available. It will be available on our website here shortly. Um hopefully by tomorrow for you to review that if you want to see it. um before you get it printed. Um but please, we would love to have community participation. This is our opportunity to be able to share and highlight um and celebrate all the wonderful things that we've done together as a community in 2025 and then also um hear from you what matters most um and look to the future for 2026 um and beyond. And then also please don't forget that we have um we are looking for the next gateway award winner. So please nominate that next deserving individual who has demonstrated the American Canyon community spirit um by displaying that volunteerism here in American Canyon. We will be recognizing that winner um at the upcoming community recognition dinner on February February April 25th at the uh Double Tree Hotel here in American Canyon. Um you have until March

1st to nominate somebody. So please uh take that opportunity to nominate that that deserving individual because they will be recognized at the dinner. If you have not purchased your tickets, please do so. we would love uh to have you and you don't want to miss out on all the fun. It's a great opportunity to celebrate with your um fellow American Canyon residents and volunteer um individuals. Thank you. Thank you, Deputy City Manager Akea aka Alli. Uh Mr. Holly, any other reports? That's everything, Mayor. Thank you. That's it. Okay, moving on to our mayor and council commit committee comment reports. Uh, Vice Mayor Joseph.

Okay. U, well, I did submit my report, so there's that. Uh, but I do want to do a couple of shoutouts for upcoming events. One is March, Saturday, March 7th is the Kowani's annual crab feed. Um, you should all realize the all the VIP tables have been sold out, but we do have regular tables available at the same price for the last three years. That's affordability. U. Secondly, the uh Art Foundation is putting on their annual American Canyon High School Arts and Music Festival. It'll be March 21st, also a Saturday, at RD Winery, and it'll be fun and free, thanks in part to a Nope, that was that's not in part to any grant. I got my events mixed up. So, be there on March 21st. Be there on March 7th. Thank you, Vice Mayor. Council member David Oro.

Uh, I submitted a report. I don't anything to add. Thank you, sir. Council member Lamatina. Nothing to report. Thank you, madam. Council member Cruz. Uh, no. The only thing, Mayor, is I will be traveling to Southern California to represent American Canon for a public policy review committee, and I'll be there for a couple days. That's all I have to report. Thank you, sir. Uh, any future agenda items? Vice Mayor, Council Member Oral? No. No. Council member Lamatina, no. No. And Council Member Cruz? No.

No. And I do not have anything for the future agenda items as well. So, we have concluded our business for this evening. We are adjourned. Good night, American Canyon. Oh, good night, Teresa.