City Council - Special Meeting

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Welcome to Boulder City Special City Council this morning. Madame City Clerk, call the meeting. After calling meeting to order, can you confirm posting and roll call, please? Yes, thank you. The agenda was posted in accordance with Nevada open meeting law and all members are present.

Thank you. Having done that, we will open for the public comment. Anyone who would like to come forward state sign in and anyone who would like to call on the phone 702589 9629, welcome to do so at this time. Phone line 7025899629. First public comments on anything on the agenda. No one on the phone line. Uh, no one here in chambers coming forward. We will close the first public comment and go to the special agenda. And do we have somebody presenting on number one?

Thank you, mayor. We have our budget manager, Angela Menan, here this morning to present the budget. We'll have two budget items for the today's workshop. Uh first we'll talk about the operating budget and then of course the the capital improvement uh plan for the next five years and and then focusing in on the next fiscal year. So turn it over to Angela. We welcome your questions and feedback. So this is the preliminary budget for fiscal year 27. Now, is this uh handout that we have the updated one then? Yes. So, you have the updated PowerPoints. Okay.

So, the presentation overview will include the budget overview, the budget process and schedule, fund balance explanations, revenue and expense information, as well as an overview by departments. The city council strategic plan says to conduct annual budgeting processes with a focus on accuracy and budgeting and estimation and fiscal sustainability including presentation of a balanced budget to city council. This year the staff's approach to deliver a balanced budget was we added no new staff. the department collaboration what to reduce um the budget based on historical um spending reduced the budget that's presented today by $590,000 re we realign spending to the correct funds for example the Main Street grant for $100,000 we move that to the RDA fund since it supports our businesses um there's a temporary reduction in the pool expenses of $411,000 and that's due to the closure as we build the new pool this year we're going to utilize general fund balance to address one-time um costs of $4.1 million. And we also have a strategy to temporarily redirect operating revenue from special reserve funds to the general fund until a new land lease is available. So the budget process for the departments is first finance calculates salary and benefits estimates. Then the departments make their requests for the new fiscal year. requests were evaluated with current and future revenue projections. The ongoing expenses were higher than the on than current ongoing revenues. So, the city manager met with the department heads to discuss budget reductions and these reductions are presented in today's preliminary budget. So, this chart right here shows the city's headcount. We do have 223.4 full-time equivalent employees. This

year we are not adding staff so we're staying at that headcount. So as I mentioned before our ongoing revenues are less than on our ongoing expenses currently and we do have strategies to address this for next year. Um first one important one is to conclude our union negotiations to confirm true labor costs. Also we're going to explore the modifications to the city's overall fee structures. We're evaluating findings of the utility rate study and the cost of administrative support by city staff for the utilities. And we're also evaluating operations by department to align staffing and service levels to maximize efficiency. So the budget process. So right now here we are at the special meeting, the first time council's officially seeing the fiscal year 27 budget. Um there'll be approval by council in May and that the budget will be sent to the department of taxation. Implementation is always ongoing and then over the year we evaluate the perform the performance of the budget and it's monitored and measured by um not only finance but also the department heads and there's always the potential of a mid-year adjustment. So this is the calendar for the budget for fiscal year 27. Um we have already sent the tenative budget to the state on April 15th. Um here we are at the special budget meeting to get direction from council. We have the opportunity at the next uh two council meetings to bring back the budget for any questions or direction that comes from today. And then on May 18th, we'll publish the hearing in the paper. And then on May 26 at the regular council meeting will be the final approval of the regular budget and capital improvement. That's kind of the budget process high level. Going to start with the enterprise funds.

So utilities is in the process of a rate study and fiscal year 27 operating and capital budgets are subject to change depending on that rate study. And you'll see later that CIP has already changed since last shown to council, but there's still more adjustments that could come up. All the inter fund expense transfers for the general funds did increase 2.5%. So this chart right here is showing the utilities funding sources for fiscal year 27. As you can see um it's $32.7 million and 97% of that is coming from charge for services. The only other funding source utilities has is a sales tax of $1.1 million. This is a sales tax that can only be used for water or wastewater and it can only be used for debt or for capital projects. Currently, it's helping pay the water debt inside the water fund. So, this chart is showing where the utility funding sources are coming from. So, again, $32.7 million for fiscal year 27. The electric fund is 51% or $16.7 million. The sales tax is 1.1 million. Water is 33% or 10.6 7 million. Wastewater is 8% of the revenues at 2.5 million and the landfill is 5% at $1.7 million. And currently in 27 we have no utility grants. So the revenue projection assumptions for utilities um are all derived from charge for services. Like I said, there is a rate study in process that um with expected implementation in October and then the only other funding source that the utilities has is that infrastructure sales tax that is currently being used to pay off the water debt and that'll be paid off in 2032. So this graph is showing the utilities

expenditures by type. So total expenditures are $51.1 million in the utilities. This is higher than the revenues, but as we are payo or cash go, we don't take out debt. We save up money for our capital improvement projects. And right now, we're just in a capital improvement project process. So, we saved the money and now we're doing the projects. So, if you look at salaries and benefits, it's about 17% of the budget or $8.6 million. Services and supplies is 12% or $6.4 million. Purchase power is 17% or $8.5 million. And that's just buying the power that we sell. Purchase water is 11% or $5.5 million. Capital is currently 30% or $15.3 million. Debt is $2.1 million or 4% and that's the debt in the water fund. Depreciation is 9% or $4.4 million. Um depreciation is not cash, but we have to budget for it. um is required by NRS for one and the other is by budgeting for it we can see if we're saving enough money in the future to for replace those assets that are that are depreciating. So the changes in the utility funds from last year is there's a slight decrease in the cost of energy from 8.9 million to 8.6 6 million and the projected water cost increased from 5 million to an estimate of $5.5 million in fiscal year 27. That increase in water cost is partially due to the increase of um the SNWA service fee cost for that water and I will go on to airport unless anyone has any utilities questions.

Go ahead. I just had one here. Oh, sorry. there's a decrease in our uh cost of energy. Why would there be a decrease in energy costs? It seems like they'd go up. The it depends on consumption for one and then um there's several things. Um and just we have different sources to buy our energy currently. um we're using less than we have in the past and just um compared to last year just the projections for this for fiscal year 27 the energy costs are a little lower and just open mark it's there's so many variables which causes that

open market is what you're I hear you I think okay thank you so when you're talking about depreciation and we see that it's 9% and I know that a a lot that we have or own in our um portfolio is doing that. So when you see 9% what kind of things do we use this for? Depreciation everything. So it's our vehicles, it's our the infrastructure, all the poles, all the power lines, it's any kind of asset that's out there for utilities. Do we find ourselves using the complete 9%.

So depreciation is just kind of showing the book value. It's not necessarily it really dep like depleted 9%. It's not like because often some things will go depreciate all the way to zero but still has a useful life. You can still use it for a time. So it's not necessarily everything is worse shape than it was by 9%. It's just the book value and it's really just a planning tool for the future to try to to keep those running. So and we keep track of what we're putting into those.

So depreciation is totally an accounting figure. there's no cash. So, it's um we buy a million dollar asset officially, we don't depreciate it till years later. So, if it had 10 year useful life, we put that it would be depreciation of $100,000 for 10 years. And it's just it's really just to show it's kind of a placeholder to make sure that make sure you're thinking about this because eventually you're going to have to replace it. It's aging and so it's kind of the accounting reason behind it for it. Okay. Okay. Thank you. Thanks. I have a question if no one else does. Good morning. Good morning. Um, can you explain the water debt and cost

where the water is being used? Is that for the city in general or It's Yep. So, this is the only existing debt for the whole city and it's in utilities and the water fund. Um, I'm trying to remember what year it went into place. This is the debt we refinanced back in 2019. It was the raw water line that we bought about I want to say about 20 years ago. I want to say 2002, but don't quote me on that year. Um, and it will be paid off in 2032. Okay. Thank you. Angela, to be clear, that was the third intake. Yes. And it was our share

of the cost among the purveyor members for that third intake. Isn't that what that was for? No, the third intake was bonded for by SNWA. So that's what the SNWA charge that residents see on their bill. That's what that infrastructure charge largely goes toward. Okay. But the our raw waterline debt was for the raw water line that currently feeds our parks and um golf courses and that's that was we paid for that. We bonded and paid for that. Okay. Thank you for that clarification.

I have uh just one question on that. Is raw water the same as a fluid water? Not quite. Um, effluent it it's not treated as high. Raw water is not treated as high of a quality, but um it's different than effluent. I don't know. I'm not a technical expert on that. Yeah, I might be able to help that. The effluent is the treated waste water from the city and the the raw water is actually water that has come from the lake but has not been treated to a a higher standard that is used for drinking water.

Okay. So it and and the benefit to the city of having that raw water line at the moment is that the the raw water line because it's not treated as high. It's it's much uh at a it's built at a much cheaper rate. So we use as uh the city attorney indicated we use that in the parks, the golf courses. I think it was a cemetery uh for irrigation uh because we and then we don't have to use the use the potable water for that. Okay. And the fluid water is water that just runs out into the desert. Correct. Correct.

Thank you. Okay, going on to airport unless Okay, so the airport revenues for fiscal year 27 are $2.3 million. Uh 55% of that is intergovernmental uh which is $1.2 million. This is coming from the Federal Aviation Administration that um it's 90% match for our CIP projects. It's also rents and royalties is 44% or $1 million and miscellaneous revenue is 31,000. So the airport expenses for next year are $3.7 million. Um that includes uh salaries and benefits at 19% or $700,000, services and supplies at 16% or $600,000, capital at $1.4 million or 38% and um 1.2 2 that is being paid by the FAA and depreciation of $1 million at 27%. So the airport's very unique in that the federal administration will pay 90 up to a 90 sometimes higher than a 90% match for all our capital improvements and our depreciation is 100% of it where really the airport really typically only pays for 10% of new construction depending on what it is. So, we have to label it as a million dollars, but even though the expenses for airport are $3.7 million, you really could take off $900,000 because the FAA would assist with those replacement costs. So, the cemetery for funding sources for fiscal year 27 is $29,000. The majority or 54% is coming from the sale of lots which is $13,000. Perpetual care is 19% or $40,000. The

opening and closing of lots is $34,000 or 17% and miscellaneous charges are 10% or $21,000.

Angel, I have a question. Um I think I skipped over one slide on airport fund changes. Is that still okay? Thank you. Okay. So, expenses in the cemetery is $274,000. The majority of this is services and supplies at 65% or $179,000. This is higher than it will be in the future. We're just have been doing some maintenance that we haven't done in a few years. And so, just taking care of our cemetery. It's a little more costly than it has been in the past and will be in the future. Depreciation is 6% or $16,000. Salaries and benefits is 29% or $79,000. While we don't have any cemetery employees, this helps pay for the cost of the landscaping and also our admin that assists with our um cemetery customers.

And this is the municipal. This is the municipal. Yes. The veteran cemetery is not connected to the city other than they have a water bill. And can you tell what do you depreciate at the cemetery? Um there's buildings. There's like small buildings and there's walls and Oh, okay. Got I just I just wonder what there was there. But I get roads. Yeah, they're depreciated. Thank you.

Yep. Thank you. Okay. And unless anyone has any questions on any of the enterprise funds, we're going to move on to the governmental. Okay. So, this first slide is showing the general fund balance history. And there's a few different colors on here. Um, if you look on the very bottom, there's like a darker blue. This is the operating reserve. Um, this is the 16.67% or two months of operating expenses in the general fund. The lighter blue, teal blue that goes away in 2021 is our capital reserve which we moved in 2022 to um acquisitions and improvement because if we're going to have any capital costs, that's where they would be. That's where this money can be spent. The green is our unassigned um funding. So this is the funding that can be spent on anything. It has no restrictions behind it. And then that dark blue is our non-spendable. So if you look in the early years like 2016 2017 that non-spendable is very very tiny. So that's basically prepaides. So they're things that assets we have but we can't get cash for them. Um if you see in 2022 that blue line grows. That's when accounting standards changed and now it's that Gazsby adjustment. So it's the the revenue that we receive from the lease revenue that's for future years. So it's not actually cash revenue. It's not we can we can't spend it. the city's worth more because we do have this great asset, but it's not something the city can use this funding to go buy something with. So, if you look at our chart from 20 2016 and 2025, our earn aside fund balance is between 45 and 70%. Um, and then if we look at 2025, so our

our operating revenue or operating reserve, I'm sorry, is about $6.9 million. Our unassigned fund balance is 16.9 and that's the amount that can be used for anything. And then it's about $13 million in um non-spendable. So paper money or in the books but not anything that we can buy anything with. So going back to start though, so our fund balance is very strong even with the non-spendable in there. This chart right here is showing just fiscal year 25. Um, so our fund balance is 30.

Can I interrupt you for a second? I'm sorry, mayor, if I might. Um, now this doesn't include any of our special revenue funding. This is strictly the general fund.

Yeah. And I think that's so important to acknowledge that as you said, our fund balance is very strong. In addition, we have very strong uh special revenue identified accounts which are building up and also providing those rainy day or or um once in a a several years period where we have to make a large investment and then we've been saving in that special area as well. And I think and I don't know maybe we'll go over that a little bit um but I think to to bring them both together

really shows the the strong and prudent stewardship um planning in the in the big picture of all that we do. So I just wanted to kind of make that here while we're talking about the general fund as well and tie them together. Thanks.

And I'm just going to show this pie chart real quick for this is just fiscal year 25. This is our last audited year. So the general fund fund balance was $36.9 million. Of that 13 million is that non-spendable Gazsby adjustments. Um 6.9 is our operating reserve and 16.9 is that unassigned balance that can be used for anything. And this um unassigned balance are is good for things like onetime costs such as CIP. So, projected revenue assumptions for the general fund, um, they continue to be fiscally conservative. Next year, we expect them to be at $45.7 million. The consolidated tax in the current budget is $15.4 million, and that's an estimate from the Nevada Department of Taxation. Property tax is budgeted at $2 million. Rent and royalties remain stable with annual adjustments per contractual rates at $17.2 million and includes both solar and other leases. Um, we do have some one-time revenue in fiscal year 27 that includes a Boulder Hills execution fee for $150,000 and also an energy storage um, execution fees of $1.1 million. So, breaking down our revenue sources for fiscal year 27 for the general fund, it's a total of $45.7 million. 34% is the intergovernmental at 15.7 and the majority of that is coming from CAX. So 15.4 million of that is our consolidated tax. Charge for services is 12% at $5.6 million. Of that 4.3 is revenue coming from our golf courses. Fines and for pictures are 1% or $437,000. Rents and royalties is $17.2 million or 38%. And miscellaneous revenue is $710,000 or 2%. Taxes is 6% or $2.5 million. So that's 2 million from

property taxes and 5 million from room or hotel taxes.

Can you say that one more time? Uh the property taxes. So taxes combined is 6% or 2.5 million. Property tax itself is only $2 million and 500,000 comes from hotel room tax.

Okay. Thank you. And then um so it's not showing on here but our our lease revenues for are divided to go to the special revenue funds. So our total lease revenues for solar leases is $21.9 million and 70% goes into the general fund which is part of that rents and royalties at 15.3 million and then 4.4 4 that goes to the voter approved fund and our special reserves goes gets an additional $2.1 million. If I might, Madam Mayor, again, just to make a point, if we look at the pie chart there, the uh rents and royalties, which predominantly land leases, is a very substantial part of our operating account, plus those special funds I mentioned are funded through a percentage of those land lease revenues as well. So the land lease revenues are very very critical to providing all of the the services and equipment and maintenance uh within the city and it's

such a big piece when you look at it in the pie chart. So thanks for including it that way. That includes salaries

that oh it definitely yes onethird of our over one-third of our revenue comes from land leases so that supports a lot of people. Okay so this next uh chart shows the general fund expenses by function. So our expenses are expected to be higher than our revenues for next year at $49.9 million. Um the largest piece of this pie is public safety at 40% or $20 million. Um salaries and benefits overall for the city is about um 70%. Public safety is very unique in that 40% is 90% of that is our police and firemen and our dispatchers. So that is all people. Public works is 17% at 8.3 million. Parks and wreck is 15% or 7.7 million. Community development is 4% or 1.8 million. Other is 3.9 million. That includes our contingency of 1.3 million that we budget 3% of our operating budget just in case something happens, hoping it doesn't. And also 2.6 million is transfers out. So $650,000 of that is going to go to our risk management fund to pay for our annual insurance premium and 1,950,000 is going to go to acquisitions and improvements to support our CIP projects. So this next pie chart is a general fund by type and said so our it's $49.9 million for 27 salaries and benefits here says 64% or 32.2 million. If we were to take out the onetime expenses such as the contingencies and the transfers out it becomes 70%. And that's why I use the 70% number because that's the ongoing expenses. The contracts is 13% or $6.7 million. Maintenance is 4% or $1.8 million. Miscellaneous operating expenses is 6% or $2.8 million. Utility services, so this is the city purchasing water and energy for our buildings. Um, is $2.2

million and transfers out, like I said, was $2.6 million with that contingency at 1.3. Okay. So, this next chart is the general fund revenues versus expense forecast. So hopefully you saw earlier when I pointed out that the general fund fund balance is very strong. Um and also our revenues are less than our expenses for next year. And that is projected to be the case that our ongoing revenues will be higher than our ongoing expenses up until 2030. And our plan is to use our fund balance till we get to 2030 when Black Hills North is expected to go live. um which will bring in $2 million of additional lease revenue and also the battery storage of that will bring in over $500,000. Um this chart right here only show does not show the non-spendable revenue. So it's not showing the Gazsby. So if you look at fiscal year 25, if anyone looked at our financials, our financials say our revenues were higher than our expenses um in fiscal year 25 by $1.9 million. And this chart is saying our revenues were 46.4 4 million and our expenses were 47.6 million. It was our Gazsby adjustment that brought our revenues higher. So this next chart right here,

I'm gonna stop you right there. Okay. Um this particular graph shows that we're getting less money in than we're spending.

Yes. And when we look at three years out, then we catch up because we're bringing in another lease basically or leases uh illustrating how we are dependent on those leases uh and doing that. So I I this graph for me is is very critical that we understand how dependent we are on those leases. We literally will be spending more money than we're getting in for the next three years. And that money comes from our general fund fund balance which we've been saving most

from our savings account. Yes. And so we have been doing well with our savings and that's why we can get away with three years of spending more than we got. Yes. and as far as income is. Uh so this graph for me is as critical as we're going to see in all of these presentations. Uh and yet at the same time recognizing we will get leases that come on board and therefore we will get more money than we're spending and be able to make that up. Yes. Thank you,

mayor. Oh, go ahead. Sorry, I was just going to ask, do we have any land leases currently that are coming due for rewriting or renegotiating terms? Um, our land leases are are typically locked in. So once they're agreed to um there's not an opportunity to renegotiate unless there the tenant maybe has a request for something different like a change in use or um something like that. At that point we have the ability to ask for changes that we would like to see as well um including updated on any of them coming up. I know that we give maybe a 30-year with 10 for possible, right? For some of them, do we have any of them coming close to that?

The re the renewal terms are at the tenants option and so they don't require our consent. They're just a consent sends us a notice that they're renewing. Um, I don't believe any are expiring anytime soon. I know the one uh Nevada Solar One uh still has another I think 20 years. Um we renewed the the um gas plant to um blinking on the name of the company. SDG&. Yes, thank you, Councilman. Uh we renewed that one. Um, so that one's renewed and the others I'm I'd have to ask Brock, but I think most of them are are still at least a decade or longer. Okay. Thank you.

Yeah, council member. I have a list of those that I can circulate to the council after this meeting. Um, I'll try to combine the list. I have one that lists all of the leases and their expiration dates. And then I also have one another list um that shows the revenue that they're uh they will generate in the in the next year. The the revenue that are generated uh they have an some of the leases have I think all of them have an escalator in them or they adjust over time but is that correct?

Yeah. Mo most the escalation clauses are only about 1% per year. Um some are two lately we've been requiring 2% or more um in our newer ones but uh and many of them the initial ones we entered into didn't escalate for like the first term things like that.

Yeah. So that second table I will it's kind of a snapshot in time of how much uh just to give you an idea of how much those lease revenues generate. Well and actually you get that from the presentation because that is the the largely the rents and the royalties. The other thing I wanted to mention just kind of put a a a finer point on the mayor's um issue. A lot when we talk about you know the table and we have the a lot of this budget revolves around the budget discussions revolve around recurring or one-time funds versus or sorry recurring or ongoing funds versus the one-time funds. And I I think for for our purposes over the next three years, that's a very important point to also understand. Those lease revenues largely are recurring or ongoing funds. And so we can use those for operations. But what we have what you will see in the in some upcoming slides is for this year and the next couple of years, there are certain expenses from the city that are one-time expenses. And so it's appropriate for us to use then one-time funds for those. and the onetime funds equals that savings account or the the city's general fund balance. And I think it's important for members of the public or anyone who's listened to understand that the difference between those two types of funds and how they're used in the budgeting process for the city. That's

the short way to say that is our savings are in a good shape and we can still fund everything and we don't have any leases expiring in anytime soon, meaning at least 10, 20, and 30 years.

Correct. And then we'll have, as you pointed out, we'll have the the new lease at Black Hills North coming online in 2030. And that will give us some additional hopefully, you know, hopefully that will give us some uh additional revenue uh to make up the the difference that we'll see over the next few years. But I I I wanted to bring that up too because it's not like, "Oh, well, we we we we would never say,"Oh, we have uh gee, we've done a good job and we have a very healthy fund balance. Let's just use that for our recurring expenses." That that that's something that we can't do. So, we've been, I think, very careful, very judicious in identifying what are one-time expenses versus one-time versus recurring expenses and applying the right types of funds to the different types of the right types of revenues to the right types of uh expenditures. Yes, that's what I was going to say is that's well said because um I kind of agree with you that sentiment of oh, we're we're we've now budgeted to spend more than we have. But the reality is the way that it's written for us of not taking out debt more than a million or whatever. We save so that we can be able to outlay on projects, one-time projects that might require a lot of money. And then at some point those projects have to happen. They're going to fall in one of these years. So then you're going to take some of that monies and and if it it doesn't come out of the general fund, it's going to come out of there, right? And that's what we save for. You have let's I always go with transformer or whatever because that seems like a big ticket cost, but it's just something that we have to save for because that's the nature of how we as a city are run. and to the labor. We are we are

basically stable. Um recognizing that uh our our main cost is people and people will be paid more uh as we go forward just because of the inflationary reality and uh retract uh attracting people. So the we recognize that right now we're okay and people are okay and we want to make sure we keep our people and we keep the services that we have and therefore it's uh we may be okay now but we recognize that we do need more money and that reality uh we will see as we go forward uh that we need to make sure we're in a position where we can afford to to maintain ain our level of service uh and everything that we have in Boulder City that makes it such a wonderful place to live. Uh so we are okay now. Uh don't jump off a bridge. uh we will be able to do what we need to do and going forward we need to be responsible for making sure that we can use our assets aka land in order to be able to meet uh expenses as they come forward in an everinccreasing way end of uh my saliloquy and if I might add one more thing we don't we're not just uh we don't just have one trick in our bag but we have uh several other things that we'll be looking at over the next year the next couple of years and uh um the budget manager mentioned some of those. In addition to the the use of one-time funds, we will be doing an operational assessment. We are currently doing the the fee study uh and we will also look at the utility rate. So, there's a a number of different things that we'll we will be looking at. I I I think of that a little bit more than nibbling around the edges. I I think that we can find

significant costs. We hopeful that we'll find significant cost savings there, but that will will take us a little bit of time. And again, that savings account then allows us to have that time available that we can take a very thoughtful and deliberate process to um rightsize and our operations for maximum efficiency. And and to your point, uh Mr. City Manager, we have a savings account. We want to continue to have a savings account. We we really don't want to get in a position where we can't afford something because we didn't save. Appreciate it. Thank you.

I have a question or so back on slide projected revenue assumptions. Um it says revenue assumptions for FY27 continue to be fiscally conservative. It seems like an oxymoron to be conservative for revenue. You want a lot of revenue to come in. You don't want to be conservative. What does that statement mean in in light of this conversation? Not exaggerating our revenue. We really plan to have $45.7 million. There's no fluff in there. We're like that. We didn't That's our known lease revenue. That's our well hopefully known C tax. It's just it's um we're not exaggerating our revenue is really what that's saying.

Okay. And it and the reason for it is we don't want to say we're going to take in more revenue and then budget too much in expenses and then not be able to pay. Okay. Thank you.

Council member, if I may, some of some of those revenue sources fluctuate and that the two Angela mentioned this the Cax, we really don't know what that's going to be. However, we we have good historical data and we get good estimates from the state. So that that that gives us a pretty good estimate, but we I think um correct my right, we hue pretty closely to any guidance that that we receive from the state department of taxation. The the other revenue source that fluctuates a lot or permits and and in the fees that we collect for that. So Ra and as you said well rather than uh inflating that or or being too overly optimistic that oh well we're going to have a lot of fee revenue we we will look at that very closely talk to the departments and then uh come to a pretty good idea of what we expect those revenues to be um and and we we tend to be a little bit on the conservative side rather than um overestimating things. Is there such a thing as planning revenue, like um seeking out revenue uh to make sure our cushions stay fat, so to speak, or is that something that just um comes naturally? A business comes in and and we go, "Oh, or is there such a thing as planning for revenue?"

You may be able to answer. The item that comes to mind for me is grant revenue. And a good example in this year's budget is that we were hoping to receive uh federal grants I believe uh for fire department. There's some equipment that was needed and I maybe in the past or or you know we we were looking for that type of revenue. However, then we as we went through the process we discovered that the the re there was a lot of demand across the country and not a lot of revenue available. So we we then had to go back to the general fund to find that revenue to cover the cost. I don't know if you have other examples of

u battery storage that was a new revenue source that the ne city never had before. So I mean we're always actively thinking outside the box and trying to think of new revenue for the city. Okay. A really good example of that is, you know, we have a lot of solar leases and solar developments out in the the Elorado Valley as battery storage was coming online. And I I credit our city attorney for a lot of this that there was a different type of battery energy storage charge that we we could attach to that. And and so with our new uh the new leases that we hope to come on that will come online in 2030, those will have that battery storage charge uh fee attached to it. and that generates a significant amount of revenue in addition to the lease revenue. Okay, thank you.

Okay, and so this is showing general fund expenses or forecast and then this one is showing the same thing but including those Gazsby adjustments. So, like I said, if you were to look in our financials and um our revenues in our financials is 49.5 million and our expenses were 47.6. The reason for that variance is that non-spendable gap adjustment. And then even in this one, um you can see in 2030, that's when our new revenues come on and we're expecting our ongoing recurring revenues to exceed our ongoing expenses. Sorry, can we go?

Sorry. If I may, mayor, sorry, I'm not trying to prolong the meeting. I I think this is a very important slide and I'd ask the finance department to break out the Gatsby funds, the the non-spendable funds from the spendables. So, what I wanted this to show is that the that the solid colors, the light green and the dark green are really what we're talking about in terms of operating funds for the city. But um for accounting purposes, we're required to show those Gatsby funds and they're they're non-spendable and it it it sounds like funny funny money or but it's it those are funds that we have to account for because it's value or um it's it's value that's available to the city but it's but it's it's not available to spend, I guess, is the best way to describe that. But I I I think that's important because a lot of times people will outside of the city will look at our uh fund balance and they'll say, "Well, you you have all this money available." Well, some of it is accounting dollars versus actual dollars that we can use for our operating expenses. And so, in addition to recurring and one-time, I think it's important to understand the spendable versus the non-spendable, too. So, there's there's a a few nuances to budgeting in this city that because of the land leases, again, um and and It's my understanding that that those gas fee funds are largely generated by the by the land leases that there's a little bit of a unique way that we we need to approach and look at our uh budgeting process here.

The acronym Gatsby, what does that mean? Generally accepted um Thank you. I I didn't hear governmental accounting standards. Standards board. Thank you. Yeah. Yeah. Government Accounting Standards Board. Sorry, you use an acronym so much you never Yeah, I kind of get lost. And that's the board that provides the standards for our our department as well as um other municipalities and in the way that they account for their funds. We we are required to follow those standards.

Thank you. So, we were talking about one-time um expenses and onetime revenues versus ongoing. This chart right here is showing how we got to a balanced budget for fiscal year 27. And I'm going to start with that first column where it says onetime. We do have onetime operating revenue for next year, which is some execution fees of $2.8 million. Um, we also have onetime operating expenses of $3.1 million and also our contingency which is onetime. Hopefully, we won't need to use that. Um, so the difference between our onetime revenues and our onetime expenses is $1.5 million. We're also going to use the fund balance which is which is a onetime revenue source of $4.1 million. So kind of the surplus deficit for next year when you look at the one-time revenue expenses and ongoing is $2.6 6 million. So now looking in that middle line of recurring costs. So our annual operating revenue recurring in 27 is $42.8 million. Our annual operating expenses recurring are 45.4. So that's a difference of $2.6 million that we're not taking in. Um, and that is a structural deficit, but we are using that fund balance of $4.1 million, which is onetime funding. And there is light at the end of the tunnel. In 2030, we will get additional revenues. So, even though in 27 this might be concerning, there is a plan to for the city to be in good shape. Okay. I'm going to go Oh, that's tight. um go over the department budgets kind of at a high level. So this chart here shows um fiscal year 26 compared to fiscal year 27 and the change in

monetary amount and also the change in percentage. If we look at the city clerks um it looks like a high change at 11% but it's only $80,000 and of that 78,000 is onetime costs for the election. the HR budget um reduced by 21% um and this is because there is onetime spending in fiscal year 26 of $22,000 and also we moved some of the expenses from HR to the city manager's budget because it's just better aligned it it's city manager's expenses um and that's so the reason the we did not cut the city the human resources budget it was just that there was onetime costs in the prior year and central services looks like it increased a lot. If you look at increased by 104% that's $160,000 and we added $100,000 to um address our MUN code. So it's onetime expense. So overall general government the increase in the budget is 4.7%. This next chart here has the MUN court and it it did decrease 21% or $44,000 and that is because last year we had a remodel that was paid for by ARPA for the court and so it had onetime expenses of $464,000. So again, we didn't cut the court's budget, but it did have onetime um spending from the prior year. and the police increased uh 3% and of that 441,000 is for cola and benefits. The police also had a redu a reduction in cost of $135,000 and this was part of the department deep dive with the with finance and the city manager to look at historical spending and seeing where any savings could be made. And the police had $135,000 they were able to remove from their budgets. The fire increased 11.9% or $880,000. This has to do with cola and benefits of

646,000 and also an increase in overtime of 200,000. Um dispatch looks like um it only increased half of a percent and that's because um we removed the rental space for the dispatch sensor since they will be coming back to our dispatch area and also there was other onetime funding that was removed from last year and they had an increase in um salaries and benefits of $69,000. So total public safety increase is 6.6%. 6%. This next chart is public works. So, the public works admin increased 11%. Um, a good portion of this $60,000 was from the increased cost of utilities. Um, streets actually decreased 2% and this was because they reduced their cost by 70% um based on historical spending. So, they were able to find $70,000 they could remove from their budget. Um building and maintenance is going up 18% but a very large chunk of this 195,000 is um onetime maintenance costs such as paint and flooring and fleet has one-time training costs to work on fire equipment this year. So it does increase slightly but that has to do with um training for them and will save us money in the future. Um and then we moved all our capital from the general fund to other funds. We have a multi-purpose fund. So that $113,000 in capital that's in the general fund in 26 was for our flood control grant. So we move that to the multi-purpose fund because it's not really general fund dollars and it just kind of skews the numbers. And then so total public works increases 5%. Parks and wreck the administration changed about 8% or $173,000. that includes the $100,000 um additional cost

of adding the trash pickup services in our parks. Um classes were reduced temporarily in tiny tots and also the youth center um due to historical spending. Um Blay Canyon um temporary salary line was also reduced $5,000 and it was again just reflective of historical spending. This swimming pool was reduced $411,000 and that's due to the swimming pool will be closed during the rem the reconstruction of the new pool. And then um the community golf course has contractual increases and also an increase in utility costs at $70,000. So overall parks and wreck um went down um a little bit less than 1%. Um, one thing very important to remember about parks and wreck is that the pool that went down $411,000 this year will come back. It will reopen and those costs will come back.

However, we have the swimming pool maintenance fund that was created as another special revenue fund being funded by our land lease revenue. Right. So, we should be able to hopefully absorb that and not take general fund hits, right? Hopefully. Hopefully. Yes. Thanks.

Okay. This next slide is community support. So grants um went down 37% but this was um has a lot to do with realigning our funds. The main street grant we moved out of the general fund and it's going to be paid for by redevelopment dollars. the community development block grant, which is funding from Clark County, not from the city, was moved to our multi-purpose fund just to not skew our um general fund. We did reduce the hotel grant from $105,000 to $75,000. Um, and then for community development, um, it did increase 7%, but there's a lot of onetime, um, costs in here, including a report conversion of $40,000, $60,000 for a housing plan, and we also, uh, just realigning our funds. We moved $20,000 for abatement to our multi-purpose fund. So, that's where if you have a civil fee, where that fee goes, and so that's where that expense will go to. So the total for community sport reduced 8%. So other general fund expenses. Um it looks like risk management increased 100% with the six $650,000 last year. Um we didn't make the transfer out just because we were trying to balance the budget and we're trying to save every penny possible. But this year, we really need to transfer that money for our insurance to keep the risk management at a stable level. And also the transfer to CIP increased $450,000. So we added a project to our fiscal year 27 capital projects. Um we have the ongoing uh fire admin building project and we added an additional $450,000 in funding for that. And so that's that additional $450,000 there. Um, overall the general fund expenses last year were $47.5 million and in fiscal year 27

they'll be 49.9 so an increase of about 5%. So all fund balances are positive with operational reserves as required. The general fund is a 16.67% or 7.6 million. All other funds um are have their required 20% operating reserve. The general fund will make a transfer out to the capital improvements of $1,950,000. There is a transfer of the general fund to risk management of $650,000. There's a transfer from the voter approved capital improvement fund of $1 million. So that's the $1 million that the voters have approved for use for um governmental capital projects. And we will be using um $4.1 million in general fund balance to cover the gap for fiscal year 27. Uh, Angela, before you move on to I'd like to just address one on the general government.

Um, under city council, there's a budget of uh 227 145. Can you break that down? There's a misconception out in the public that uh each council member is making almost $200,000 a year. No, I'd like to u kind of break that myth. Um the council members make 20,000 a year. The mayor makes $25,000 a year. That city council budget is everything. It includes um travel expenses. It includes um internet. It includes all costs associated with um city council.

Thank you. If I might just step in, one of the biggest expenses is out of the council account. All of our legal notices that are required by NRS come out of the council account as well. Yes. So that 227,000 is not going to one council member. That's actually the complete budget of the to include uh employment pay and everything else. So just wanted to put that on the record. And our legal notices are very expensive. There is a very high cost and legal notices. What what does that entail?

Any of our any of our legal notices um whether it be required for all of our bills and all of our ordinances that come before the council, the bill introductions have to be legally noticed, the consideration has to be legally noticed. Uh, I just recently on behalf of the um accounting department, some of their notices have to be um legally noticed. So, they submitted to me and I forwarded them to the Las Vegas Review Journal for publication. And I'll just give you just a quick example. This latest one, it has to be um notice published in the newspaper four consecutive days and that alone was a little over $600.

Wow. It's important to point those things out because I think people think well I don't think they think anything about a cost being associated to doing business that way and it's a lot foyer request all that it adds up. So when we're looking at overall budgeting for city council, that's 227,000 is not pay in no means. That's correct. And even though she mentioned um travel and training, that is a very very small portion.

Right. That 4,000 that just got added or changed is not a raise for us. raises at this level have to be voted on and do not go into effect till after the people who sat there have run again. True. Right. And we haven't voted in a race. Okay. Thank you. Okay. So, that is the general fund and our plan for fiscal year 27. And I'm happy to answer any questions you might have. So where does golf course fit into all this?

The golf courses is part of the general fund. So if you earlier when I said we had revenues of $5.6 million for charge for services, 4.3 million of that was for golf courses. So the operating expenses of the golf courses are in the general fund. Let me Oops. So right there on the bottom. So um they increased very minimally. So it's really just the contract with um the golf management increased as well as the um management of the grounds and then also the just the cost of utilities increased. So I mean the golf courses are just under $4 million in expenses and are taking in $4.3 million in revenue. So

the golf courses are bringing in 300,000. Yes. Per year. Yes. The last few years the golf courses have been in the green and bringing in more revenue than they have had in expenses. So they have actually been contributing to the general fund. So they're keeping Boulder City green in two different ways. They are. They are. Thank you. They have been an asset. Thank you. Okay. Any other observations or questions? Yes, sir. Thank you. Yep. Thank you.

Mayor, may I add one thing about golf courses? We're we're going to talk about it in a minute with the CIP. So, when the golf course comes up again, uh in addition to the green fees and the the other um revenue generators at the golf course, there's a separate search charge that's attached to every green fee for both Boulder Creek and the municipal course. Are they are the sir charges the same or are they different? Yeah, I think they're different for each golf course, but when we get into the CIP, you'll hear a little bit more about that because those sir charges are used directly to funds not the operations of the golf course or the the uh contracts for the management of the golf courses, but for the capital projects and the facilities. In this case, I think it's equipment that we're that we use. So, when you look at my monthly financial report to the council, that's broken down. I'm going to work on a kind of a simplified version that I can share with the council that will show the difference between the operating funds for the golf courses and then the use of this sir charge and for some of the capital projects over there.

So it's going to be transparent very yeah thank you.

No question but a comment. Um when I first came in here, the discrepancy between what um was expenses versus intake was pretty big. And one of the things we tasked you guys with was please could you present a more clear-cut balanced budget for us and that actually takes all hands on deck. it it's every single area of the city needs to take a good hard look at their expenditures and their wish list, right? It's like when you were a kid and you opened the Sears Robuck if you're really old and um and you dogeared every single page and you know there's something on every page, we could all wish for a ton of things, but when reality sets in, we might just get oranges and chocolate in our stocking, right? And so I truly appreciate um a commitment by everyone in the city to present to us as a council as it is our responsibility to say hey yeah that this is what we want to do um a more accurate complete picture that helps us to feel good about what we're deciding. So, I just don't want that to go unnoticed

and I I truly want to say thank you very very much. Thank you. I would also like to thank staff uh for all their hard work because I agree with uh Councilwoman Jorgensson. We all want for our department and want our department to be the best and so we appreciate the hard work each department took in looking at their budget. Thank you. Thank you. Well done. Appreciate it, Mr. City Manager.

All right. If we're ready, we'll move to the agenda item number two. This is will be a similar presentation, but this time we'll be speaking specifically about the five-year capital improvement plan as well as uh focusing in on capital improvements for the upcoming year. And again, we have our budget manager, Angela Man here to present the

So, so this is our proposed 5-year CIP, capital improvement plan for 27th through 31. There's um been minimal changes since we last met January 13th. The majority of them are all in utilities, and it's due to we're in the middle of a rate study and just trying to keep rates as low as possible, just adjusting timelines. We um and we'll talk about those in a second. So, the proposed five-year capital improvement plan has 68 projects with a combined cost of 146 um and a half million. For fiscal year 27, whoops, for fiscal year 27, it includes 48 proposed projects for a combined cost of $43.8 million. um this increased since the tenative budget in January because we looked at all the timeline of all the utilities projects and realized there was uh many of them we wouldn't finish in 26 and we pushed them out into further years. So it's not new projects and it's not new money. It's just you're seeing it again. They're pu pushed out into the future.

Sorry, but I know that we had ARPA funds, right? How much did we receive in ARPA funds? $21 million. They twilight this year, right? End of December, we're down to $300,000, which is set to spend every single penny. And all that's been invested in our community. Yes. That's what I like to hear. Thank you. Yes.

Okay. This first chart is going to just show our funding sources for our 5-year um CIP. So, it's $146 million. The majority of it is our enterprise funds at 45% or $65.1 million. That's uh 37 million for electric projects, 15.7 for wastewater, 7.1 million for water, and um also 400,000 for landfill. Um the airport also has $3 million in here. The outside funding is 23% or $32.8 million. The good majority of this is coming from the Federal Aviation Administration of $27.2 million. That's um to help support our airport capital improvements and also $5.6 million from the regional transportation commission which um assists our roads such as slurry ceiling and other improvements. The governmental is $25.4 million or 17%. Um and voter approved is 22.5 million or 15%. the governmental and the voter approved are really high compared to historical and is because we have the very large pool project happening. So focusing on just 27 the funding sources are $43.8 million and of those the enterprise funds are 35% or $15.4 million. Voter approved is $9.5 million or 22%. Um, so we have the $1 million that we can spend for that the voters approved annually for governmental projects and then we also have the funding of the sale of Liberty Ridge that's going to help support our pool and then 10% is um also used for public safety. Uh, governmental is 36% or $15.7 million. This includes $2.2 million in acquisitions and improvements and 11.8 million from the pool fund. um

$1,650,000 from the RDA. Um and then it is 36% but if we were to take out the pole project it would be down to 17% which is more in the norm of our historical spending. So, Angela on Li Liberty Ridge, that's uh three increment payments and one has come forth. Correct. And when's the next one due? Um, good question. It's planned in 2027, but I don't know if I have an exact date.

There's timelines in the agreement that they have to meet um for each phase. Um, but essentially it'll be when they're ready to take down the second phase and build the next development. Um, and again, they do have time frames in which they have to do that by, but it's I think it's like 3 years or two or three years. I'd have to look at the agreement to know for sure. Okay. I was thinking 2027. That would be too soon. That's their goal. I mean they're they're looking to build you know as quickly as possible to their mutual benefit to sure

um but there was built-in timelines due to you know built-in flexibility due to market conditions and things like that but there set timelines to ensure they do have to fulfill the obligation um at you know within a certain amount of time and I would add that some of and correct me if I'm wrong but some of that is driven also by the city's growth management ordinance where uh a developer is only allowed an individual developer is only allowed 30 permits per year. So that that drives some of that timing as well. Okay. Thank you. Okay.

So the governmental funding for our capital improvements for next year, the acquisitions and improvement fund comes from a transfer from the general fund of $1,950,000. The swimming pool fund resources of $20.3 million come from the pool's fund balance that came from donations, voter approved funding, and also investment income. Um, fun fact about the pool, because we did have all the cash up front, we have had $1.7 million in investment income in that revenue to help support our pool project. And then our redevelopment district fund has resources of $1,650,000 to promote business in the RDA district. So voter approved funding. So Liberty Ridge was approved by the voters to be used 90% for the pool and 10% for public safety. In fiscal year 27, we have budgeted $8.5 million to be used for the pool. And then that voter approved um funding of $1 million annually will also support projects inside acquisitions and improvement. Um the voter approved funding grow in fiscal year 27 is um scheduled to have $4.4 million in lease revenue. And since we can only spend $1 million, it will grow at $3.4 million. At the end of fiscal year 26, the cash balance of that fund will be about $11 million. And so depending on what happens with that ballot question, it could continue to grow at that $3.4 million or be used for um more readily available for current CIP projects.

Angela, quick question on RDA. That 1.65 million, is that um a total of what we have to use or what is that? So that's the projects we have in fiscal year 27 that's going to be um supported by the RDA. So, it's one point um 1.5 million will be for the pavilion and also $150,000 is for um just holiday decorations in the business districts like replacing the banners and just making the business district look nice during the holidays. Thank you.

Okay. Okay. So, so the search charge funds, so both Boulder Creek and the municipal golf course charge a search charge fee every time you do um a round of golf. There's a small fee that goes into the search charge account. Both of them grow at approximately $150,000 annually. And this money set aside for capital projects at the golf courses. Currently, we're using that funding for replacement of equipment. So, in fiscal year 27, Boulder Creek will use almost $126,000 to replace equipment. And the Munich Golf Course will use 290,000 to replace golf course equipment and that's paid directly by the search charges in the green piece. So enterprise capital projects are funded by user fees for services. So the airport fund for fiscal year 27 will use $140,000, the electric fund will use 10.6 million, the wastewater fund 1.9 million, the water fund 2.4 4 million in the landfill fund, 400,000.

Angela, uh, quick question. I was writing when you were on the golf course. Um, just a a note, the SNWA rebate for grass removal. Um, that's not listed anywhere in here. Is that kind of a wash? Um, so for the golf course, we're playing it by ear. We'll find out at the end if we qualify for the rebate. um what we have budgeted right now does not include the rebate for the trip removal and it's just um it's going to be dependent on the end of the project if we qualify to receive a rebate or not. Okay, thank you.

Could I just comment on that as well? Again, I apologize for my commentary, but No, that's good. So the uh for the golf course, yeah, we we do not include it in the budget now because it isn't approved by SNWA. We will of course uh review that and evaluate that. We we are hopeful that we would, you know, we we will go after any funds that are available. Um and once that is reviewed or approved by SNWA and we we the funds are secured or we know that they're actually going to come in at that time, then we we could include them in the budget. but we wouldn't include them now because they're they're out there and they're they're possible but they're not confirmed. So we would wait to confirm them before adding them into the budget.

Okay. So the uh to remove it we pay it up front and the rebate would cover that. So would basically what you're saying is again it may be a wash. It definitely won't be a wash. The rebate wouldn't be as much as the cost of the project. That's what I mean. Yeah. Well yeah we would end up paying more out of pocket. So do we want to remove the grass? So, well, that may be an argument for another time, but you know, I I just think when people talk about removing grass, is a cure worse than a disease. And I think our focus is on water conservation and not necessarily turf removal. I think

we are obligated by our own ordinances to meet the golf course water budgets. And so, removal of the grass is to accomplish meeting those budgets. And if we don't meet those budgets, then we will have to pay ourselves fines. Okay. regardless of a rebate or not. That's correct. No ordinance. Thank you. Mhm. Okay.

Okay. So, outside funding for our capital projects include the regional transportation commission of $1.4 million, and this will assist with our roads. Um, also the Federal Aviation Administration of $1.2 2 million. And again, this is that 90% match for um projects at the airport. Um next year's project is beginning of um construction of taxiway D. Um so since we last met on January 13th, there's really been minimal changes. The one general fund change we've already discussed a little a little earlier is we have the fire administration building. So, we're taking the remaining funds from the firehouse, which is about $900,000, and $1.3 million for a current classroom project. Um, so that's $2.1 million. And we are building an administrationclassroom building over by the firehouse. Um, this has two purposes. It will move the admin out of the firehouse, so more firemen can go into the firehouse, and there'll be more room for the firemen in the firehouse. Um we in our first estimate we do not we're short about $450,000 for that admin building. So we had added an additional $450,000 for our capital um plan for next year. And that's our one increase for next year. The other changes are all due to utilities and um doing the right study and just really analyzing all the capital projects and looking at timelines and when we can complete things. We removed two projects in water and one was um a service truck for $175,000. Another was the airport potable main which were putting um it's not necessarily utilities responsibility to put those in. It's more of a the users using that line would need to make those improvements. So that reduced the budget $2.5 million. And then all the other

changes in utilities was just looking at fiscal year 26 and seeing what we'd be able to finish and um timeline of substation 3 going online and just readjusting all the projects. So it looks like utilities really grew in expenses. But in theory they didn't change at all. We just pushed projects out into the future for cash flow purposes. Happy to answer any questions or having our utility director come up and talk about that. So the $450,000 is uh con you know with the current uh footprint of the fire station. U so we have not added another fire station. We have not added any other uh people to be in that fire station. Um so that isn't that hasn't appeared before us at all in all of these planning things. No, first no, our first step is really the administration building and orclassroom getting that built and then moving forward with future options.

Thank you. Thank you. Any other questions or observations? I just if I can make the invitation to our public works director to come up. I just want to be clearly stated um because of of the the way that um our finance department, city manager, utilities department or uh public works utilities are working together on these projects that are changing the timing. um specifically addressed how we're still dependable and reliable and meeting our strategic plan goals of of keeping our our citizens in electrical services dependably for years to come. But these projects aren't negatively affecting though that that goal. So

Mayor Council Gary Po Dexter, public works utilities director and that is correct. We've uh we've looked at it in depth of how we can adjust across the next 5 years whether it was the transmission switches, the feeder projects, um also what we could handle each year. But it is all each one of those projects is about reliability. And so we prioritized what we could get done with in-house and third party help and how we can spread out and what we also didn't need. As uh Angela mentioned on the water side, we took the main line out of the airport that uh we'll be looking at PRVs on the individual buildings. So the rest of it that we moved around, adjusted um is about reliability and continue that um throughout for our citizens, our residents. So

thank you. I just, you know, it's such an important goal that we have and that we depend on. you know, as has been stated, you know, nobody when they flip on the lights and they come on, nobody calls city hall to say, "Hey, my lights turned on." Correct. But uh if they don't, we certainly um have high priority issues to address and and all these don't adversely affect our dependability, reliability. It's just a matter of properly managing and scheduling them.

Correct. And yeah, and so some of it is our agent infrastructure. Um other items are stuff we want to add for reliability. Uh so we're mixing those two two together and uh definitely plan on having a system that continues running. I grew up here with the resetting the clock all the time and we've come a long way and we're going to continue that. So

great point. Thank you. That historical perspective on how much we've really uh advanced in our dependability and reliability for our electrical infrastructure and the others. But this is just so you know we have some very basic and fundamental primary goals as the municipal government and you know the electricity, clean drinking water, treated waste water are so crucial to that primary goal and responsibility we have and just you know I appreciate all the efforts both financially and the planning side and the actual getting our crews out there to do it is so essential and um I I feel very confident that we're doing the right things and the right timing and and wanted to hear you express that. So, thank you.

Thank you. You brought him up.

So, um speaking of water and wastewater and raw water and uh where are we at with the concept of raw water becoming made portable in that second uh straw as it were, second pipe? So, so right now we're still working with SNWA. I have seen a concept plan of how it would would be designed. We also moved up um some funding up to 2728 for our infrastructure that we would need to switch over. Uh but we still need to come to an agreement of how we would switch that over from a raw to potable.

They would probably have some question mark how much we would participate in the cost of that I suspect. Yeah. I Yes. Yeah. And but we're trying to look at some other ideas um as we have with other uh with RTC with Boulder's populations not growing, other entities growing. Uh we'd like to see how we can be put into a different category, not necessarily along with everybody else. So, all right. Appreciate it. Thank you. We're working on it. There is a plan. Anyone else want to?

I I do. Gary, I just like to say thank you to um on behalf of the residents. There's times where I called you and the city manager to have hawk lights put in, which is a safety for kids crossing the street or people in a wheelchair crossing the street. And you've uh been on top of that immediately. And you know, I know you have bigger priorities, but those two are safety um projects. And thank you for just putting in those Hawk lights. And also thank you for um the Adams and uh Buchanan uh street or soon to be improved. Yeah,

that's yeah that project is soon to be looked at maybe by fall. But thank you for all that you do in uh answering our calls literally, you know, within a week or two. So, you do prioritize those smaller safety things that you can handle. That's not going to take personnel or time or money. And um but it does impact our schools, you know, right around that area. And so, I just want to thank you for putting in those hawk lights wherever you can. Of course. And I pass that on to my team. Um I have a great team that supports me and uh I couldn't make that all happen together. So, they really pull they pull it together. So, thank you. Thank you for that. Thank you.

I just look at the proposed five-year capital improvement plan and just next year. I mean, 68 projects, 48 for next year. I say go get them. I mean, that seems pretty huge. And I um I appreciate those who are working hard to make that happen. And I hope that the residents in our city see that these projects are to the benefit of making life here better for our residents. Seen or unseen, relining pipes don't always get seen, right? But it cost money to do that and it cost um time

by people who are doing it. Um so 48 projects, I can't wait until you come back and tell us how that all went um as a city. 48 projects. I'm excited to hear about that. We have a plan and I've asked my staff hold on tight. Yes. But uh we're bringing in some extra help, some third party, but uh yeah, we have a good plan to to get there. Well, thank you for not putting things off and so much as to cause any problems as was stated before, but to um address what needs to be addressed and be willing to put 48 projects on your plate. So, thank you. All right. Thank you. Thank you.

Welcome back. Thank you.

Happy to answer any other questions or so. Just real quick, here's the calendar for the capital improvement and it's the same calendar as it is for um our operating budget. um we have the opportunity to bring this back um at any of the council meetings up until the May 26 where the final budget and capital improvement plan will be adopted. And then the draft 5-year capital improvement plan is available on our website. So um bcnv.orgcip2027 and it's um much easier to look at than what's in the packets. you can drill down, look at individual projects, and it's just it's really meant to be a digital budget book, and it's it's just way easier to look at if you want to look at it online.

So, do we have a feel for how those are going to be funded incrementally, the the projects, all projects currently in our five-year plan have a funding source. So I mean utilities currently we have no grants so it's all being funded by um service charges and then um a lot is acquisitions and improvements. Okay. Thank you.

Um in relation to utilities if I'm not mistaken please correct me but in in our overall planning and and and making our savings accounts that we can you know draw to um doesn't uh the utility um enterprise fund overall for all of the utilities have a $5 million savings account, if you will, for excuse me, large um large capital projects that may need to be addressed in in an urgent fashion. How accessible is that money?

Cash. It it's it's in our funds. Um in case of emergency, it could be immediately.

Yeah, that's awesome. And because, you know, sometimes unexpected transformers or breakers or whatever that cost millions or at least hundreds of thousands can unexpectedly go out while still within their service life. Uh, and so to be able to have that planned and funded uh is also a crucial component to the overall budget process. So, I'll stop there and then um I don't know if we're going to address this handout or if it's just the handout, the general fund summary, but my point is, as you already stated, all of this you can go, anybody can go, not you, you literally, but you generally can go to the city's website, bcnv.org, government finance, and then go there's there's publications there. There's um budget breakdowns. Everything is accessible u to any of the citizens um within this community or outside that want to drill down to details and find um useful publications. Not only budget summaries, you have your executive summary, you have your special fund summaries, and you have the turning land to revenue uh pamphlet that's also there. There's a lot of really really good information. And if people have any detailed questions, you know, they can start there and start drilling down to the details and and then, you know, reach out to staff or council for additional information. But that's it's great that, you know, those endeavors have been undertaken to make them accessible on our website.

Thank you. Thanks. Let finance know. Thank you. Is the golf course on that general fund summary? is a golf course on the general fund summary. Um for revenues, it it is it's included in charge for services. A portion of that is the golf course revenues. So almost 90%. So of the 5.6 4.3 of that is coming from golf course revenue. Okay. So golf courses. Any other questions?

I do. I just have a question statement comment. Um there was a budget meeting like town hall I guess for the public. How did that go? I mean we're here and we're looking at this and you know the public's listening in and there's really not the opportunity to speak and ask questions but you did host a town hall. What I think a week ago I was out of town. How did that go? April 1st. It was our most well attended town hall ever. So I thought personally it went very well. There were some great questions. Thank you for doing that. Do you plan on doing that quarterly, yearly?

We always we always do one every year if there was typically one or two people show up. So the one has been not well attended. Um but this one we did have quite a few people. There was a packed house. It was really nice. So it just depends on demand, I guess. Thank you for offering that.

It's an interesting thought. Maybe in the next year I'll talk to executive team. Um, I know our community likes to and and we like to share the progress that we're making on these projects, the 48 projects. And maybe we somewhere during the year we could have some type of a community meeting where we give an update and just an overview. I know we do this one off or from time to time we do it in a well I'll I'll do it on a sometimes in uh on a quarterly basis as I report to the council on the strategic plan. and I might give you an update on some projects, but maybe a project some type of a project update meeting. Let me think about that a little bit and and I think it would be a good way to communicate and and be transparent again with the community on these projects that we're in the and the money that we're spending and and where we are is to to check in throughout the year u at least one time in the middle of the year about where we are.

Yeah, I think we're a small enough community family, if you will, um to where that exchange is always wanted. you know, it's not every resident wants that, but you do have your concerned citizens, and it's always nice to be transparent. So, um I haven't heard back since I've been back on how that went, but thank you for offering that to the residents and uh anything, you know, going forward would be great

rather than a meeting because not everyone can come to a meeting, but maybe there's some type of a communication that the city manager's office could put out on uh a newsletter or something um that that could give an update on the projects we're doing. So, let me think about that and then we'll we'll come up with something to communicate that to the to the council, but also to the community on what we're working on. Thank you. Thank you for all you do. Thank you.

Thank you. So, um, madame city clerk, is there anything specific we need to do as accepting the presentations and providing staff to finalize the capital improvement or the general fund? No, that won't be necessary. Uh, if there's nothing else, we'll uh go to our public comment.

Thank you. Thank you. Anyone can call in 7025899629 or anyone here in chambers welcome to come forward. Take your three minutes or up to three minutes. 7025899629 7025899629 Anyone in chambers 7025899629 Nine. See no one here in chambers. No one on the phone lines. We will close public comment and meetings adjourned. Thank you all.