City Council - Regular Meeting

Thank you.

Thank you.

Good evening, everybody. I would like this call to order the May 20, 2026 Cosumnes CSD Board of Directors regular meeting. We're starting at 532. This meeting is being broadcast via live stream. I want to remind those in attendance to please place your phones in silence. Will the clerk call the next item, please?

Yes, thank you. Good evening. Item A, sculpture order and a roll call. Item A1, directors Pease.

Here.

Vice President Lozano. Here. Director Zender. Here. Director Tarango. Here. President Siqueiras. Here. Thank you.

We will now do the land acknowledgment. Director Tarango.

We honor, respect, and acknowledge Elk Grove's first inhabitants, the Plains Miwok, who lived as sovereign caretakers of this land and these waterways since time immemorial. We commemorate and advocate for their descendants, the Wilton Rancheria tribe, the only federally recognized tribe in Sacramento County, who endure because of the bravery, resiliency, and determination of their ancestors, tribal members, and leaders owed.

Thank you very much. This evening's moment of silence will be in honor of our staff who will be working hard during the summer, especially during the heat, and for our firefighters who are going to have to fight some wildland fires. Please remain standing after the Pledge of Allegiance.

I now may choose the Pledge of Allegiance.

Order of Directors, Lance Ray Fire Marshal Kouzounas. With me is Shea Clark. We're going to introduce her right after this, so we'll get started with the pledge, and then we'll do the moment of silence and then quick words.

Please join me in the 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. Thank you.

Thank you. Just very briefly wanted to introduce Shay Clark. Shay Clark has been with the district for almost five years. She was in recreation and we, as tradition is, we steal. And so she started with us on April 16th as a permit tech. Shay has a background. She has a a degree from UC Davis in neurobiology, which is obviously very normal for permit techs. She also, she enjoys coding, has already been into our computer system. She has a lot of very unique hobbies and interests that match up very well with the job, and she is doing a fantastic job for us already. We are super excited to have her. Wanted to offer the opportunity to say just a couple words and welcome her to the district, or to the fire department.

I just wanted to thank the board and everyone in here for dedicating their time and energy back into this community. As Chief Ray said, I've been a part of Casino CSD for almost five years now. And it's been more than a job. It's just been an absolute blessing. And I'm so excited for this new role and all the work that's ahead.

Thank you very much. Welcome aboard. You're in the fire department. I think maybe EMS will pull her away from you, especially with her degree. Next item, please.

Next item would be communications from the public on non-agendaized items. I have not received any. Have you? We do not have any speaker cards for this item. Next item, then, please. Next item, C, consent calendar. Staff recommended that the board approves consent calendar items four through six as presented.

I have not received any requests.

There are no speaker cards for this item either.

I have not received any speaker cards from the public. Is there any members of the board that would like to have any items on consent agenda? Have none? I just have one. It's on item number six on the NBS contract. I noticed on page three that it mentions the city, but not the district on some liability issues. Can we have that added, or what do we need to do to get that added?

Yes, so in Section 7A, Of the agreement, it does note that the consultant shall not receive any employee benefits of the city. It is an error that it doesn't also say that they shall not receive any benefits of either the city or the district. The city has already approved that agreement, and so when we go for signature, we'll notify the consultant in the city that we are signing with that modification in order to have it on the record.

Okay. Thank you. So on our... request would be to add that item district only? Or do we have to even do that?

Approving the agreement with the modification that the district will be added to that section. To Section 7? Yes.

OK. All right. If there's no other further discussion, I will entertain a motion to accept the consent agenda with that modification.

I motion.

I have a motion from Director Tarango. Do I have a second?

I'll second.

I have a second from Director Zender. Any clarifying questions from staff? None. Call for the vote. All in favor?

Aye.

All opposed?

No.

Motion passes 5-0. Next item, please.

Next item, the presentations. Item D7 is fill the boot for burns. Fire Chief Felipe Rodriguez.

Thank you so much, Elenisi. Good evening, President Siqueiras, members of the board, Felipe Rodriguez. I have the honor tonight to introduce the executive director of the Firefighters Burn Institute, Joe Pick. who is here joining us tonight, along with several of our members, those who were instrumental in ensuring that Fill the Boot went off without a hitch this year. We have Firefighter Manuel Carter in the back, and Firefighter Eric Jackson, and Executive Assistant Brita Geiger, who coordinated and organized this event to make sure it was successful. And a big thank you to the Car Club and all else who are here to support. Turn it over to you, Joe.

going to stack thank you chief thank you board um again it is my honor privilege once again the men and women of the Consumers Fire District, as well as the community. And I think we're gonna start out with that, because what Manuel and Eric have done with this boot drive is not only just raise funds, but gather a community together. They have taken the scale of what we call a satellite boot drive. We do our own boot drive for four days, What they have done is elevate it to a level that I have not seen in any other fire district in the state. And we have probably 30 different fire districts that do this. What those two individuals have done with the support of the staff of Consumus and the community is remarkable. So I want to start off by recognizing specifically the car clubs that came in. It added another element. one of the things i need you to to realize that i've realized as i've done these boot drives is that people see firefighters out there and they love our fire service community and they want to support firefighters and they put money into the boot for firefighters but what is key about these events is communicating to the community that yes we take care of our own We get burned, there's no doubt about that, but we are here for the community and the programs that we do for burn survivors up and down the state and well beyond. As a matter of fact, in two weeks, we have our kids camp coming up, a camp for seven to 17 year olds. We have 52 kids that are coming. We spend a week with these kids and they're coming from Oregon and Southern California and Nevada. and the Sacramento area. These are the programs that we do, and we couldn't do it without the support of our fire departments and the community that supports it. So I'd like to start by recognizing a few of these individuals. Can I get a representative from the Cars and Coffee Elk Road? on behalf of firefighters burn institute we thank you thank you for your support um and um supporting what we do and educating the community on the programs that we have this is a challenge coin that i give to everybody and i'm going to do them this way so i thank you very much and i think she wants to do it Can I get a representative from Drops Car Club? On behalf of the Firefighter Burn Institute, thank you. Thank you for your support. I have another one for you. Thank you for your support of this event and your community. Good call. Good call. Cal Truck Specialties. $1,000 check to add to the total that we will have. Now to get into the details of the event and some numbers. I'm going to pull this up here and get my readers on. This is the 22nd year between Elk Grove and the Consumers Fire District that they've been hosting an event for us. Their first boot drive was in 2004. This year, the total came to $38,371 in a two-day period of time. That, my friend. Gentlemen, come on up here. So a couple of recognitions that, and I literally have two boxes full of plaques or presentations to give to businesses throughout this area that supported that two-day event. Again, having an event that big, you've got to have the resources to supply it. So know that the businesses within this community are being recognized as well. As I said before, this isn't just firefighters out in the street, this is a community that comes together and supports and understands the mission that we have, that we've been doing for over 50 years. So, first I'd like to acknowledge the 2025-1 probationary firefighters. I was hoping there would be some probes here today. But please, on behalf of the Firefighters Burn Institute, let them know my appreciation. I think it's important when you get into the fire service that you understand it's not about your 10, 24-hour shifts. It's about the bigger picture of what you do for your community and know that you represent the community. And this class did that with class. So I give that to you guys. Thank you. This year, I give another plaque for you guys for 2026 for your commitment to doing this boot drive and helping us fund. Over half of our funds come from boot drives, either from our large boot drive that we do and all these satellites. And it gives me an opportunity as a retired fire captain to go into firehouses and let them know not only what we can do for their community, but what we can do for them. And one of the things that we do is a liaison response team, specifically for when a firefighter gets burned, gets a burn injury. And what we have transformed that into is even the smaller burn. because unlike the general public that gets a burn and the doc says, yeah, wrap it up and go back to work, when these men and women go back to work, they're going back into a superheated environment that is not conducive to a healing of even a small burn. So we get them into the clinic, make sure it's evaluated by somebody that understands burns, and give them the best direction on what they need to do for the healing so they can get back to work sooner, which we all know we all want to get back to our firehouse.

So on behalf of the Firefighters Burn Institute, there is your plaque.

And this is one we don't give out often. I have given it out once or twice. It's what we call the 30 Grand Club. And so not only did they hit $30,000, they hit $38,000, which, again, is a remarkable achievement. And as you well know, comes from a lot of hard work, prepping ahead of time, getting the individuals, convincing people to come on out and donate a few hours. Gentlemen, I can't thank you enough. As we all know, as firefighters, we can't do our job without the support of a support team. And I want to personally thank you for all your support.

Turn it over to the board for any comments, and then I would like to do a picture.

So we'll go ahead and take any comments. I'll start on my right.

Wow, just congratulations to everybody. It really is the epitome of teamwork makes the dream work, right? And I am such a proud citizen of this city and just can't say kudos enough to all of you communicating the need and the passion and the why, because without that, people don't understand. And just thank you for all you do every single day. Thank you.

Thank you all for all of your hard work, and certainly the car clubs and the community that came out to support this, and really appreciate everyone's desire to get out there. I wasn't able to be out there this year, but I certainly will be next year. But thank you so much, and if you have a $40,000 plaque, I think we could probably do that next year.

Get that one already, too. Ooh. Our first year, we did 46. Oh, nice. See? The economy's a little rough, but it was a really good year. And we've bounced back and forth. But last year, I think we made $7,000 more than we did last year. So it's only getting better. I have some more plans to make it a little bigger.

Awesome. Perfect. Great job. Dr. Zender.

Great job. I went out there with my family and we thoroughly had a great time and we ran around too with the firefighters. So it's a great event. And thank you guys for all the hard work that goes into that. And thank you to the car clubs for coming out because it makes it that much better and it gets the community involved. So thank you all for everything.

Director Trango.

Yes, I had the opportunity to get out there and really see you guys working hard to get people to donate, but I have to just say how amazing it was to see all the community coming out, including the car clubs, everybody who gave time and effort, and to hear how many businesses were involved with this. Sorry, I don't know why I'm getting so emotional with this, but it's just the excitement of knowing that as a community, we still come together to make sure we are taking care of our own but not just our own, of so many other community members in need. So thank you guys. You guys are remarkable. Being out there and watching you guys was just amazing. So congratulations. Thank you.

Well, Director Tarango, getting emotional on something like this is absolutely, if you've ever been to those camps, it's amazing. First of all, you guys are awesome. Thank you so much for what you do, the time you spend. But what I think is really important is how you got the community to step forward with you. Something that I've seen grow and grow and grow. Keep up the good work. You guys are great. I think next year you'll get 40 plus. So congratulations.

Lastly, I want to, again, remind this community that educating people about our resources, I can't tell you how many burn survivors that I have met, adult burn survivors that were burned as a kid and never knew that there were any resources. We have partnerships with other foundations, Phoenix Society, which is an international organization um that's our goal and when they become a part of our family they're a part of our family for life so if there's somebody that you know that has been uh that's a burn survivor let them know about us uh and let them know that they're a part of our community so thank you very much join us for a picture up in the center and if i could ever represent it from the car clubs join us as well with the board

Thank you. Thank you.

Next item, please.

Next item is item F8, staff reports, fiscal year 2026-2027, meet biennial budget amendment and updates to the publicly available pay scales. Budget manager, Jillian Chavez.

Close your eyes. Don't look. Try and come back to the beginning. Okay. Good evening, President Siqueiros and members of the board. My name is Jillian Chavez. I'm the budget manager for the district, and I'm here this evening to present the fiscal year 26 to 27 mid-biannual budget amendment. Before I get started, I do want to point out that the slides are numbered on the bottom right-hand corner, so if you have any questions related to any particular slide, feel free to jot it down and I'll be happy to come back to revisit it. As we developed this budget amendment, staff remain focused on the district's mission, vision, and core values. The recommendations before you support public safety, parks and recreation services, and fiscal responsibility. The proposed investments are intended to ensure we continue delivering high quality services while maintaining strong financial stewardship. This evening's presentation will begin with a brief overview of the budget development process and timeline. We will then review a few key budget highlights. before jumping into the major fund performance for the general fund, landscape and lighting assessment fund, measure E, capital projects, and internal services fund. Following that review, we will discuss the updated five-year general fund five-year forecast and summarize the recommended board actions and conclude with next steps. Before walking through the timeline, I want to emphasize that the fiscal year 26 to 27 budget has already been adopted by the board through the district's normal public budget process as part of the biennial budget that was approved in June 2025. The purpose of the mid-biennial amendment is not to develop a new budget, but rather to update the existing budget to reflect changing economic conditions in updated revenue and expense. projections. The mid-biennial budget development process kicked off in March shortly after establishing a foundation with the fiscal year 25 to 26 mid-year budget. Instructions were released on March 13th with personnel services projection data available one week later. On April 10th, departments submitted their budget deliverables and initial submissions were reviewed by finance before department meetings which were held at the end of April and beginning of May. The general manager and strategic management team then completed their review and provided direction on budget proposals moving forward. In early May, the proposed Measure E budget was presented to the Citizens Oversight Committee and was affirmed to align with the community identified priorities. Following those reviews, all recommended adjustments and budget proposals were incorporated into the amended budget as what you're going to see presented this evening. Before we dive into the numbers, I'd like to highlight a few key items included in the budget amendment. First, I am pleased to state that the structural deficit included in the originally adopted budget has been eliminated through the incorporation of the cost allocation plan, which recovers administrative support costs provided to the district's other funds. The budget continues to use the same indirect rates that were implemented at mid-year. However, shortly after this budget adoption, staff will update the cost allocation plan using the latest budget figures and data points. The amendment also reflects updated personnel services costs, the district's largest expense category, based on the revised salary schedules presented in this evening's staff report. In addition, the budget reinvests in the district's assets through a variety of building improvements, maintenance projects, and equipment replacements that help preserve infrastructure, improve operational efficiency, and ensure we can continue providing reliable services to the community. The budget amendment also strategically redirects resources to advance several key strategic initiatives, including the district's ERP system, planning and early design efforts for Fire Station 71 rebuild and repurpose project, continued progress on clear committee initiative, and the development of the fire department's community risk assessment and standards of cover. While these initiatives represent significant areas of focus within the amended budget, staff still remains committed to advancing the district's other strategic initiatives and will continue making progress on those efforts as resources and project timelines allow. And lastly, Updated five-year forecast for the general fund continues to project positive operating results and healthy reserve levels demonstrating the district's improving financial position and long-term sustainability. The next two slides will provide a 1,000-foot view of the district-wide budget, inclusive of all nine of the district-wide funds. District revenue is estimated at $208.5 million for fiscal year 26 to 27. As shown on this slide, property taxes remain the largest revenue source, accounting for approximately 36% of total revenues and continuing to serve as the foundation for the district's financial stability. The next largest revenue sources are EMS revenues at 13%. transfers in at 12%, and assessments at 11%. Together, these four categories make up for more than 70% of the district's total revenues and provide the primary funding for the district's operating and services. The remaining revenues come from service fees and charges, measure E revenues, recreation service charges, interest earnings, and other smaller revenue sources that help diversify the district's funding base. While this slide highlights where district revenues are coming from, the next will show how those resources are allocated across the district's programs and services and capital investments. District-wide expenses for fiscal year 26 to 27 are estimated at 215 million. As shown in the chart, personnel services represent the largest expenditure category at 54% of total district-wide expenses. This reflects the district's investment in employees who deliver parks and recreations, public safety, and administrative overhead services. The second largest category is services and supplies, accounting for 27% of expenditures. This includes the operating costs necessary to maintain facilities and day-to-day district operations. Transfers out comprise of 12% of district-wide expenditures and primarily represent the movement of resources between funds to support capital projects, debt obligations, administrative overhead, and other planned activities. Capital outlay and contingencies account for 5% of expenditures, reflecting the district's continued commitment to infrastructure improvements, asset replacement, and prudent financial planning for unforeseen circumstances. And finally, leases and loans make up the remaining 2% of expenditures and represents the district's debt service and financing obligations. The next several slides summarize the district's major operating funds and the significant adjustments included within the proposed amendment. While each fund has unique revenue sources and expenditure requirements, a common theme throughout the amendment is improved alignment between actual operating conditions and budget assumptions. You will see the same table for each major fund, but I will start with the general fund. The first column identifies the major revenue or expense classification. The second column shows the adopted budget as approved by the board last year. The third column shows the proposed mid-biennial budget amendment. And lastly, the fourth column shows the change between the adopted and amended budget, with a positive number reflecting an increase to projections and a negative representing a decrease. The general fund remains the district's primary operating fund and reflects the most significant financial improvements included in this amendment. Revenue projections have increased by approximately 5.8 million, primarily due to stronger EMS revenues. increased plan review and inspection activity, and growth associated with the EXL program. It is important to note that our property tax assumptions are not changing as part of this amendment. The adopted budget did already include a 5.5% increase to supplement secured property tax revenue projections, and based on that, the information that's currently available, staff still believe that to be a reasonable estimate. Expenditures are increasing by approximately $5.4 million to support operational needs, strategic initiatives, and the budget proposals, which I will review later. As a result, the projected deficit has improved from approximately $1.8 million in the adopted budget to approximately $1.4 with the amended. Perhaps most importantly, reserve usage is now limited to one-time investments and capital-related needs rather than ongoing operating costs, which represents a structural balance. The projected ending fund balance is $32.6 million, which represents more than 25% of expenditures and remains fully compliant with the district's reserve policy. The landscape and lighting plan reflects several significant operational realignments associated with the clear committee initiative and implementation of the cost allocation plan. Revenue projections decreased by approximately 3 million, primarily due to the district no longer maintaining certain city-owned streetscapes in the Laguna Ridge area, as well as adjustment to administrative overhead allocations. Expenditure is also decreased by approximately 2.9 million due to reduction in maintenance responsibilities, project deferrals pending clear committee outcomes, and administrative allocation adjustments. The landscape and lighting fund balance at the end of fiscal year 26 to 27 is estimated at 48.2 million with plan savings set aside for future maintenance in alignment with the district's asset life cycle plan. Over the annual budget amendment, changes reflected here improve transparency and better align service responsibilities with asset ownership while preserving long-term financial strength of the fund. The Measure E Fund continues to support community-identified priorities. Revenue projections have increased by approximately 900,000 based on updated sales tax estimates provided by the City of Elk Grove. The approximate $2 million expenditure increase reflected in the amendment supports several important public safety initiatives, including the ongoing fire academy operations, EMS training, emergency traffic signal preemption technology, and equipment upgrades. The budget also incorporates the district's cost allocation methodology to ensure Measure E appropriately contributes to their portion of administrative costs. Even with these investments, the fund is projected to maintain an ending balance of approximately 4.7 million, which is roughly 43% of the annual budget. The capital project funds supports the district's capital improvement plan and long-term infrastructure investments. The fiscal year 2026 to 27 budget supports approximately 35 active capital projects, which does include the projects funded by the Internal Service Fund. Notable projects included in the budget are improvements at the Wackford Community and Aquatic Complex, continued development of the Mendoza Ranch Park, construction of the Station 46 Annex Building, and the initial planning work associated with Fire Station 71. The amendments reflected in this budget align the budget with the final capital improvement plan, which will be presented later this evening. The Internal Service Fund reflects some of the most significant strategic investments included in this amendment, with revenue increasing by approximately 1.8 million and expenses increasing by 5.5 million. The largest adjustment relates to the implementation of the district's Workday ERP system, which represents a major investment in administrative modernization, operational efficiency, and internal controls. Additional adjustments reflect increased insurance costs, technology expenditures, facility maintenance improvements, and transfers associated with Station 71 project. While these investments increase expenditures in the short term, they are expected to generate long-term operational benefits and improve organizational effectiveness across the district. At this point, I am going to turn it over to our Chief Financial Officer, Nhu Vang, to cover the General Fund's five-year forecast.

Good evening, Director Sequeiras and members of the board. Tonight, I have the pleasure of reviewing the general fund five-year forecast with you. About a year ago, our five-year forecast was telling a very different story. The forecast projected ongoing structural deficit throughout the planning period. Expenditures growth was outpacing recurring revenue growth. And while the district can remain financially stable, the forecast signals that corrective action would be needed to maintain long-term sustainability. staff took that message seriously and moved from identifying the issue to implementing solutions. Over the past year, one of the district's most significant effort was implementing the district-wide cost allocation plan, which better align administrative and support costs across programs and funding sources. We also updated several key fees and cost recovery areas, including EMS transport fees, fire-related fees, plan review fees, and other service charges to better reflect the actual cost of providing services. These were important actions because they were not one-time fixes. They improved reoccurring revenues and addressed the underlying structural imbalance. As a result, the financial outlook we are presenting tonight is significantly improved from where we were a year ago. The actions implemented over the past year were designed to address the underlying structural imbalance rather than simply providing a temporary relief. As a result, the forecast has improved significantly. Reoccurring revenues are better aligned with costs of services provided, and the district is in a stronger position to manage future financial obligations while maintaining service levels. While challenges remain and ongoing monitoring is still necessary, the outlook today is considerably stronger than it was a year ago. The general fund revenue are projected to increase from approximately $125 million in fiscal year 26-27 to $145.5 million in fiscal year 2030-31, representing more than $20 million in growth. over the five years. Property taxes are largest and most stable revenue source is projected to increase from $75.5 million to $91.2 million. EMS revenue are also projected to grow from approximately $27.9 million to $30.9 million during the same period. While fiscal year 26-27 reflect a planned deficit of approximately $1.4 million, that deficit is primarily driven by planned expenditures and timing-related items rather than a structural issue. Then again, in fiscal year 27-28, the forecast projects positive operating results each year, with annual surpluses growing from approximately $136,000 to over $1.2 million by fiscal year 2030-31. The forecast also shows that the districts are maintaining healthy reserves. General fund balance is projected to grow from approximately $32.6 million to $35.7 million by the end of the forecast period. With that said, the work is not done. The next phase is about protecting the progress we made. Personnel costs remain our largest expenditures and are projected to increase from approximately $92.6 million to $109.1 million for the next five years. Staffing costs, salaries, and benefits will continue to require careful management. Workers' comp and general liability insurance remain one of our fastest growing costs here at the district, with annual increasing projecting from 8% to 10%. On the revenue side, oops. On the revenue side, we also need to continue planning for the future. Development areas in SEPA and Laguna Ridge are going to be built out the next couple of years, or a few years. And as those air mature, assessed valuation growth could begin to moderate, which reinforces the importance of continuing strong cost recovery practices and maintain disciplined financial planning. The overall message tonight is that the district is in a strong financial position, and we should be proud of that. The forecast reflects a much healthier outlook than we were a year ago. The actions taken by district over the past year are producing results, and our focus moving forward is to ensure we maintain the momentum and continue building on our long-term financial sustainability. With that, I'm going to pass it back to Jillian.

I'm going to be closing out this presentation by reviewing the recommended board actions, which are included in this evening's staff report. Staff is requesting four actions from the board this evening. First is approval of Resolution 2026-13, which established the district's appropriations limit and it formally adopts the fiscal year 26 to 27 mid-biannual budget amendment. Second is approval of the budget proposals, which were included in this evening's staff report. And I'll highlight those in a few slides here. And third is adoption of the updated publicly available full-time pay scales. And lastly is the approval of the part-time salary schedules. California's GAN initiative requires local agencies to annually establish an appropriations limit based off of population growth and cost of living adjustment factors. For fiscal year 2026 to 2027, the district's appropriation limit is calculated at $266.1 million. The amended budget is well below that threshold and fully complies with state requirements. Approval of Resolution 2026-13 will formally establish the appropriations limit as calculated here and adopt the amended budget. The budget amendment includes 21 strategic and operational proposals totaling approximately $3.6 million. Several of the largest proposals focus on long-term financial sustainability and infrastructure protection, including the additional discretionary pension liability payment, foundation drainage improvements, ERP loan repayment acceleration, and clear committee consultant support. The proposals also support purchasing process improvements, investments in telecommunications management, and several facility improvements projects at Wackford. Collectively, these investments help protect the district's assets, improve operational efficiency, and support long-term strategic objectives. The remaining proposals focus primarily on public safety, technology, workforce support, and service delivery. Examples include the community risk assessment and standards of cover update, continuation of the mobile integrated health program, radio frequency ID inventory technology, turnout gear maintenance equipment, logistics support staffing, and equipment for new fire apparatus. These proposals are intended to improve operational readiness and workforce effectiveness. As part of the budget amendment, staff is recommending approval of updated salary schedules effective July 1, 2026. The proposed updates reflect previously negotiated labor agreements and recommended cost of living adjustments. Approval of these schedules is required to maintain compliance with CalPERS regulations regarding publicly available pay schedules. Pending board approval, the amended budget will take effect on July 1, 2026. Staff will continue monitoring revenue and expenditures and economic conditions throughout the fiscal year and will return to the board with the fiscal year 26 to 27 mid-year report in early 2027. Preliminary actuals and audit results will follow as part of the district's regular financial reporting cycle. That concludes my presentation. I'm happy to answer any questions that you may have, and I will leave you with the list of board-recommended actions.

Thank you, Jillian. Do we have any members of the public that could speak on this issue?

We receive no speaker cards.

Do not receive any? Thank you. Does any board members have any comments on this staff report? And I'll start on my left this time.

As always, Jillian, you guys do a fantastic job at showing us where our projections are and where we're headed, so thank you very much. Everything was great and easy to follow, but I don't have any questions for you at this time. Thank you.

Dr. Zender?

Hi. Great job. Thank you. I do have a couple questions. One is, where are we sitting in our reserves for Measure E?

I believe it's approximately, let me go back to my notes. Like what percentage? It's in the 40s. Oh, okay. Yeah. Okay. I'm here somewhere. 43? I don't want to say the wrong number.

Was it 43%? Was that the number?

That sounds right. I'm hovering between two numbers. Don't want to say the wrong one, but I got it here somewhere. 43, good job.

Thank you. And then I had, no, I think that was it, actually. I just wanted another presenter for that one, but thank you. Of course.

Vice President Lozano.

Yeah, thank you, Jillian and staff, CFO Bang, for your work on this. I appreciate the fact that we were able to take care of that structural deficit that we had a year ago. I really appreciate all of the work from all of the staff on coming back with the to take care of that and the board heard that a few months back and took some action. I believe this is probably the most transparent budget presentation that I've seen in a long time. Not that the other ones were bad, but I really liked the way you laid it out, all of the items that were listed, the budget proposals that were approved. Really appreciate that. And the only, well, I had several questions in my meeting with the general manager this week, and all of them were answered. It is It is great to see the other investments that we're making mid-cycle, including the mobile integrated health program. As you probably know, it's near and dear to my heart. I think it's a great program. And then the other programs that we are investing in. And so thank you so much, and great work.

Thank you.

Director Spieth?

I'll just echo everything my colleague said, but I just can't express to everyone enough of, like I said, I think the collaboration, transparency, it's very apparent, and like Director Lozano said, I think it's, for me, one of the most clear presentations I've heard. Thank you so much.

Jillian, thank you so much. I have to agree with all my colleagues. I have a couple questions, though, on slide number 15. I'm looking at the EMS revenue. Are we getting close to that being potentially an enterprise fund? Or can we do it as an enterprise fund?

Thank you for that question, Director Sicarius, or President Sicarius. That's a really good question. When we look at an enterprise fund, it has to meet specific types of requirements, and that doesn't mean it doesn't have to, it couldn't be, but that's something we can explore further to see if it meets those specific requirements to be required as an enterprise fund.

And I don't expect it quickly, but I think with the new program that we're getting and that we can do cost and individually looking at programs like this, it would be kind of – it looks like it's getting close to how much we're bringing in and the expenditures will be really – really close for that division. And it being an enterprise fund, maybe able to closer manage those funds. And that's all I'm looking at, if that's possible. In the near future, nothing. It's just a general question.

Yeah, I just have one additional comment. There are pros and cons to going to an enterprise fund. So when you're going to enterprise fund, we're going on a full accrual basis, which changed the accounting structure of EMS. We might have to re-look at that, too. So I do want to caution in doing that because it would change things a little bit.

It's just a generalized question, but thank you very much. Thank you. Slide number 18. So in, I believe, April of 2025, our chief financial officer made a presentation to this board in coming up with a way to reduce our UAL payment and also our OPEB. There are few organizations that even want to take this on. I appreciate what you have done. Putting in a million dollars into this fund, additional to what we're paying, is something that government agencies tend not to do. And we are doing it. The outcome of this, although it's a million dollars that someone can say we could have used somewhere else, this actually prevents us from having future issues with our payments and also having the ability to ensure that our customers, being our employees, have a guaranteed retirement and also their health benefits. It's tough to take a million dollars and put it into this. But I think the long-term effects are going to be absolutely fantastic. So I want to commend you and your staff for looking at this. I hope we continue doing it. I also hope we can see another line that says something with OPEB in the near future and bringing those costs down. The long-term effects of this is going to be seen within the district, and I hope in my lifetime. But it will definitely be seen, and some of those individuals are out there. So I appreciate that. So thank you so much. I also noticed something. Excuse me.

Sorry. Just want to pause because she's done amazing work. But what I failed to point out on this slide is the proposal items that have an asterisk next to them are ongoing items. the district really came together to make sure that we can make that additional discretionary payment on an ongoing basis.

Well, that even makes me more happier. So thank you so much. I appreciate that. I did notice some things in the budget. This is just a general comment, and I'm gonna have to give a little kudos and commend our Parks and Recreation Administrator. I know that there's times where we have to look at hiring personnel, and we've seen us hiring more on the fire side than we have on the Parks and Recreation side. I also know that we're going through clear right now, and that is gonna change a few things. And I know you probably want people, and this board would love to do that for you in the future, but I think that what you have done managing it and looking at clear and seeing how those changes may occur and affect the district, I want to commend you for that because it's really tough when you see your colleagues getting some people and you're sitting there holding your breath. I just want to say fantastic job. I really appreciate what you're doing in that. So thank you very much. Um, that's all I have. Excellent job. I agree with everybody. Great job. Continue the hard work.

Thank you.

Okay, with that, with no other further questions, I'll go ahead and entertain a motion, motion to accept staff's recommendations of one through four. I have a motion from Director Tarango. Do I have a second?

Yes.

I have a second from Director Spice. Any other further comments from staff or board? I see none. Go ahead and call for the vote. All in favor?

Aye.

All opposed? None. Motion carries 5-0. Next item, please.

Next item is item F9, the 2026-2031 Five-Year Capital Improvement Plan. Director of Engineering, Scott Jones.

Good evening, President Siqueiros, members of the board. Tonight's presentation on the 2026 through 31 capital improvement plan should be fairly short since I brought a draft version to you back in April. But I did want to use this opportunity to provide the board with project updates from last fiscal year's CIP projects, and then I'll jump into the upcoming CIP updates. This last year, the district's been busy. We've completed 28 projects. We've done many tenant improvements to our fire stations. We rebuilt the roadway to Fire Station 73, which you can see was in need of replacement in those photos. District-wide, we've added security lighting to the South Admin parking lot, as well as Lippincott Park. We completed Phase 3 of Elk Grove Park Veterans Memorial, and we opened our 108th new park at the district, Unity Park. On the recreation side, we did several improvements on our golf course. We replaced some of our roofs, floors, and HVAC systems at some of our recreation centers. And we also opened up CORE at the beginning of this fiscal year, which was our largest recreation center project to date. Right, so in terms, now jumping to the CIP in front of you, just a quick overview of the CIP for the audience. Again, it's a five-year plan that helps for the development of our sites. It is a planning tool we use to align our projects along with the funding sources and various timelines and priorities, and we update it every year so that it is reflected in the upcoming fiscal year's budget, and in this case, the mid-biannual budget, which Jillian just presented, In terms of the development of the CIP each year, put out a call for projects. We've got new projects. We take existing projects and modify those as need them based on priorities. And then this year we brought the draft version of the CIP to the board in April. We received comments from the board, which were incorporated in this final CIP in front of you. Some of those comments included providing a project status summary table, as well as incorporation of some type of public art to the Elk Grove Youth Center building, which are incorporated in this final version in front of you. And that leads us to today, where I am presenting the final version of the CIP, as well as the mid biannual budget, which was just presented by Jillian. And again, please note these numbers that I'm going to show you in these next slides are incorporated into the mid biannual budget, which was just approved by the board. Cool. In terms of the overall five-year forecast in the CIP, we've got a planned expenditure of up to $226 million over these various types of projects shown on this pie chart. In terms of the expenditures for this upcoming fiscal year, which are in the mid-biannual budget. We've got planned expenditures for just under $11 million from the various funding sources identified in this table, which are also in the CIP. And that concludes my presentation, and I'll leave you with the recommendation in front of you. I told you it was going to be short, Director Tarango. Thank you. Happy to answer any questions you may have.

Thank you very much, Scott. I haven't received any public comment. Is there any comments from the board? I'll start on my left.

That was great. Super informative. Loved it. Thank you.

I wanted just to say thank you for taking my suggestion for the mural for the youth center. I was really excited to see that on there. So thank you.

Just one comment. Thank you, Scott, for your work on this and everyone else that is part of the process. It is so refreshing to see the Internal Service Fund being utilized the way that it's supposed to be. I have many conversations with our general manager about saving for things that we need to get done, and this is the vehicle that we use to do it. It's, like I said, very refreshing to see that we're saving as we go and paying for it as we go, and so very, very good. Great presentation. I appreciate the two bites at the apple. Making tonight very short gives us an opportunity to really... and digest everything that we're doing moving forward. So thank you so much.

Director Spies is fine. Scott, absolutely fantastic. Thank you. I do like the idea of seeing this twice because of the size of the document, all the projects we have. I actually have this in a PDF file on my computer at home. So when I get phone calls from residents saying, when is the park going to be built, I can literally pull this up and give them an idea. Although sometimes they're not happy, it's just nice to have that information in front of me. If there's no other comments, I'll go ahead and entertain a motion to approve staff's recommendation. So moved. I have a motion by Vice President Lozano, second by Director Tarango. Any further comments from staff? None. Call for the vote. All in favor?

Aye. Aye.

All opposed? Motion carries 5-0.

Next item, please. Next item, G, Board of Directors Business. G10 is Meeting and Event Approval and Report.

Does any board member have any items under this agenda item? We'll go ahead and start with Director Spice.

I think since the last time we were here, we got to go to the, Director Sikaris and I got to go out to CORE and boogie to Zumba. And I tell you, Director Sikaris has moves. So we had a good time. Indy Freckles had a great stretch and a run that day too. Unexpected, but she came back. So it was good. So anyway, that was fun and great to see just how thriving CORE is. And again, congratulations everyone there. It's just booming and it was a lot of fun. This weekend I'll be going to the Bounty on the Boulevard on Sunday, which is in support of the Elk Grove Scholarship Foundation. So that's a great thing. And also taking in all the murals that we were just talking about that are going to be happening in Old Elk Grove area. So if you didn't know, go to the west side there, and you're going to see some of our amazing artists here from the local area all putting up some really cool art. So you can check that out.

Director Lozano.

Yeah, I only have one thing to report on. I attended the Memorial Day service at the Galt Arno Cemetery. It was very well attended, probably near 100 people. And so it was really good. They had very good speakers that talked about family members who lost their lives as veterans. And so very well done. I want to thank the general manager, Belinda, for her work on that and putting that together every year. That's all I have.

Director Zender.

Nothing to report at this time.

Director Trango.

Yes, I do have a few things to report. So last month's Park Advisory Committee meeting was great. It was a little bit short and sweet, but who doesn't like that? I also was able to attend the Sangam Annual Convention. This is the first time it was held here by the Fijians, and it was such an amazing event. It was kind of on the outskirts of us, held at Consumnis, but it was great. And then the Ty Linenhan Memorial. If you guys did not get a chance to see it yet over at the Elk Grove PD, it is a beautiful memorial. So that was a beautiful opportunity to be there and see his memory being upheld. So thank you.

I'd just like to report out that I attended the water safety night at the Wackford Center. I did not go down the slide because our administrator of recreations, administrator was not there to watch me, so I figured I wouldn't do it this year. But it was... I tried to get the general manager to do it. We both are waiting for you, Tracy. But it was a pleasure giving the proclamation to four of our senior lifeguards, and it was nice recognizing them. As Director Spee said, I did do Zumba. There is a video out there. I'm trying to get it destroyed, but it was very nice. I got to next time make sure I look at my calendar that Elenisi sends that says Zumba. I just thought it was a proclamation, and I'd be walking out of there. But I got to admit, I liked it. I really, really enjoyed it. Staff there made it fun, and we actually got people walking by that joined in with us. And finally, I attended the Memorial Day at the Old Cemetery along with the walk to the Veterans Memorial at Elk Grove Park. A somber event, but also a very well-attended event. So that's all I have. Next item, please.

Next item is item G11, General Manager Report.

Good evening, members of the board. I want to start by expressing my appreciation. You authorized over $450 million to be spent on the budget and the CIP book, and it's a general manager's delight to see so many staff come together and put this budget together, both on the operating and the capital improvement program. We've got a lot of exciting things to get done over the next couple years, and it takes a lot of teamwork and unity to pull it all off. So again, appreciate your support on those budget authorizations. We mentioned CORE briefly in the CIP discussion of an outstanding project last fiscal year, but we also received an award for outstanding facility from the California Parks and Recreation District Association. And our engineering director, Scott Jones, and the architect gave a presentation to several general managers and other staff and board members. And the list is growing long of how many people will now want to come and tour the facility. So it's a model throughout the state that's the envy of several other districts. Not all can pull it off, as we did with a lot of teamwork and a lot of years of preparation and taking some risks to pull it off. But so far, it's doing well. It's not even a year old if open yet, but we'll continue to see its success as we modify the ratio of programming options and membership and all those things. But exciting project and quite the envy. This Saturday, we've got a busy day with an Oasis Park community meeting to discuss community issues with the city counterparts. And I appreciate Director Tarango is going to be there with Council Member Brewer hosting that. And staff will be there to also support that effort. And then once that's completed, we've got the regional safety day at the Elk Grove Park. So I encourage the community to come out and participate in that starting, I believe, at 9 through a couple hours and learn all about the safety features. Elk Grove Police Department will also be participating with our fire department and other safety booths and partners participating. So exciting weekend ahead. But again, thanks for your support tonight. Thank you.

Thank you. Next item, please.

Next item is item H, identification of items for future meeting.

Does any board member have any future items? I'm not sure I'm going to request this as a future item, just a concern. Last couple of weeks, or a couple of weeks ago, we had a wind event. I do know that we shut down part of Elk Grove Park. First of all, absolutely fantastic. Thank you very much for doing that. As I was sitting in a different location watching some of the oak trees that were near some of my property, I was wondering if we were going to shut that down, and fantastic job. I was going to request that we get policies and procedures for some type of wind event, weather event, but rumor mill tells me you guys are already working on it, so I am not going to even go down that road. But I just wanted to acknowledge that shutting down the park and looking at something like that for the safety of not only our personnel, but for our community. Well thinking ahead. Thank you so much, and I appreciate that. With that item, next item.

Next item is item I, adjournment.

We'll go ahead and call this meeting adjourned at 6.42. Thank you all. Y'all, great night.

was like a little kid.

Is he spoiled?

Oh, my kids are so spoiled. They think that they deserve a present every time they come over to Grandpa Grimm's house, and they come over to Grandpa Grimm's house every week, a couple times a week. So every time they come over, where's my surprise, all of you?

Where's my surprise?

You know what? I'm going to jackpot. Oh, I can totally see you.

yeah they and they get annoyed with him and he doesn't have a surprise so it was so funny just to listen to him i was just like how's your husband doing you liking it yeah he is he's feeling a little bit more confident maybe that'd be great

Hey, so did you get a chance to hold the toddler niece of yours?

Yes, with a mask on.

I, you know what, I wasn't sure, but yeah. I was like, shut up. Because I'm at my ranch, and there's these two big opportunities, and these things are swaying, and I'm like, do we shut it down, do we shut it down, do we shut it down? Then I said, damn, and I go, yeah, I got a phone call.

He said, yeah, good job. I am not kidding. That's just a good call.

Do we have one if there's a lot of rain that we can suck out the females so they don't tear apart?

I didn't want to ask questions. I was just going to get my blood pressure high.

So he made me. I say nothing.

Yeah, I took a picture with the baby and I was like taken out before.

I mean, if they're responsible enough to go like, hey, we're going to really tear off the fields, we're not going to do it, but if they stop becoming irresponsible, then yeah, I would think that that would be somewhere we can go.