City Council - Regular Meeting

Good afternoon. Today is May 11th, 2026 and this is the city of Prescat budget workshop meeting. And I can see that the audience is brimming with concerned taxpayers out there. I think I see maybe three. So, let's take it away and we'll have roll call next. Mayor Rousing here. Mayor Prom Freeworth here. Councilwoman Frederickson here. Councilman Gamboji I am here. Councilman Garing here. Councilman Grady here. And Councilman Ruby here.

All are present. Okay. Thank you. Next item. Presentation and discussion regarding the fiscal year 2027 budget workshop two. Good afternoon, mayor and council. I'm Lars Johnson, finance director, and as you all mentioned, we have workshop number two today. So, this workshop will cover the following departments: public works, community development, recreation services, and airport. There will also be a very uh emphasis on the capital plan today. You'll recall two weeks ago, we had workshop one. In that workshop, we went through a budget overview. We also discussed certain departments such as the administrative departments, police, fire, courts, and library. So, this is a continuation of the conversation. Um, and also wanted to mention upfront, we've scheduled on the May 26th voting meeting a follow-up agenda item on the budget for council to have additional conversation of things that are brought up during these two workshops. We we'll bring back to you on that day to uh discuss further and staff will have further proposals for you on those items. So I wanted to bring this budgeted fund balance slide to workshop two and the reason is eligible uses of fund balance are capital projects one-time uses. We don't want to see as a fiscal s uh stable city. We don't want to see use of fund balance for ongoing needs. But for one-time projects, capital projects, it's a uh eligible use. Overall, we're I'll walk through actually this what what's on the slide. So, beginning projected fund balance is the balance in

that fund or fund category as of July 1st, 2026. And then the net changes with the budget, revenues expected minus expenditures including capital. there's a net change that gets you to the ending fund balance at the end of fiscal year 27. So that'd be June 30, 2027. Some of these fund categories will have additional slides throughout the presentation. So especially in wastewater, solid waste, golf, and airport, you'll have a separate fund statement. We'll go through the end streets fund, the general fund. we talked about mainly in the previous workshop. So I'll walk through that here. Um under the fund balance detail there's an operating policy. What that means is by budget policy adopted by council the minimum fund balance in the general fund should be 20% of operating revenue. So that's what's reserved as the minimum fund balance. Then we have internal loans that's been extended to other funds and that's mainly the solid waste fund and airport fund at this point. Long-term obligations are uh retirement acred benefits that we reserve an amount that we can uh pay employees when they retire. And then we have the two remaining categories. One is specific programs projects. That's the public safety tax initiative balance expected at the end of fiscal year 27. And then what's unassigned are things that don't particularly have an earmark. And that's, as you'll see, it's only in the general fund do we have that category. That's the most flexible use of a fund balance that the city has for council's consideration. The other funds when you

have a fund balance that has to be used for the restricted purpose. The revenue was collected for a reason and that then has to be spent for that reason. Very quickly, I have a few slides on capital improvement program and that's just to give you sort of an overview and then as public works and and airport recreation services comes up an airport, they will all talk about their projects more in detail. Here at the city, we do a five-year capital plan. So that would be fiscal years 27, which would be our adopted budget, and then four additional years after that. The future years column represents projects within the five-year plan that would continue after. So that's not all future years, obviously, if it's just to complete out that project or that category. So for example, under wastewater treatment, we have the expansion of the wastewater treatment plant by the airport starting in fiscal year 31. To finish out that project, there's an amount assigned so that we get the full picture of that project. Overall, that's for the 5-year plan, 681.6 million for the five years. And then when you add the 180 million for the future year column, you'll see the total at the bottom of 862.5. So the five-year plan gives council a view of upcoming infrastructure needs so we can proactively manage the costs rather than react to emergencies. It also strengthens transparency and long-term financial stability by align aligning major investments and with community priorities and available funding. So as um

you'll see this is very summarized in nature. I want to show for the benefit of the public also how to get to the detail here. So, I'll bring up Sorry, let me the mic. I'll bring up the capital plan on the city's website so that you can see how to navigate the detail real quick. Okay. So from the city's web page, if you would go to departments, then budget and finance on the right hand column, we're putting all of the resources for this current budget process. So if you navigate then to the current days workshop and the five-year capital plan. This would give the detail of each project under the categories presented for fiscal years 27 through 31 and 32 represents the future year columns here. And if there's a particular project you would have interest in, you could navigate to the project detail tab on the top and we have established detail underneath each one. So you could click on the project, it would give you a description and the funding plan. Very good. So now just one slide for me and then I'll be ready to pass it on to the next presenter. This gives you a summary of this total plan by fund type for expenditures.

This is a visual representation that indicates the largest percentage of our capital plan is for our enterprise funds and that's to be expected with our utilities, water, wastewater projects. um general fund you'll notice is is 27 and 28 is higher and then it kind of decreases from there. And with that, I'd be happy to turn it over to the city manager to present the next few slides. Uh yes, we have a comment. Uh Lars, I had a comment about the prior slide.

Yes. Uh, and I'm looking at uh the uh wastewater plant expansion at the airport of over 60 million. Uh, is that centralization?

If you're good, council member, I'd like to defer that to the public works team when they're up here later. Um, or Gwen, you could come up now. Either way. Good afternoon, Mayor Council. So, um, Councilman Garing, we're we're going to commission a study. We have that in our budget for this year to look at all of the projects that we've done and all of the projects that need to be done to ascertain what percentage of them, if any, is attributable to centralization. I think there's um an argument that can be made that the expansion of the plant is as a result of growth, not necessarily the centralizing of the two plants, but there may be a part of it that is attributable to centralization. So again, we're going to commission a study to have that analysis done and hopefully answer that question in full for you. But at this time, that's really about all I can tell you.

Okay. Thank you. Uh, when do you expect that study to be done? We have a scope in place. We're hoping to bring a contract to council in early July. All right. Thank you, Mhm. Mayor.

Yes, Mary. Before we let Lars step away, uh, looking at that most recent slide that you put up, the capital improvement plan fund type. Um, there was reference in other slides. um for the library and donation being a big chunk if not the majority of uh of their capital improvement. Uh are the donations is the donation for the library or other donations reflected here in this slide?

Yes, good question. So several of our projects have multiple funding sources. this particular project you brought up with the library being donation funded that would fall under the special revenue type so it would be in that pale green color. Thank you. One one question from me Lars. Um I don't see impact fees in here. Do they not figure into the capital improvement plan?

They actually mayor they do uh figure into the plan. The governmental impact fees are under the capital project fund type. So that's the gray color. So the governmental ones are for police, fire, and streets. That's under that category. And then enterprise fund related capital or sorry impact fees are collected and paid for out of the enterprise funds themselves. So water wastewater impact fees would be under enterprise funds. All right. Thank you. Any more questions for Lars? All righty.

Okay. So, as we did last week, you know, we we always want to make sure we've got our strategic plan out front and that we're following that that plan. And so, again, like we did a couple weeks ago, like to just review a couple things you'll see today. Um, and we can talk about them more specifically as we get to those departments. Um but again just aligning our activities with what we said we'll do. Um Oh I see.

Very good. So um last week or two weeks ago we talked about the public safety the dynamic economic environment and the good governance sections. Uh this week we'll be talking about the infrastructure section and the preserving and protecting the natural environment and community livability section. Um so you'll see throughout the the conversation today again within that infrastructure section of our strategic plan um each item being hit um and keeping us on track with the deadlines in the plan including the root cause analysis for our our traffic transportation looking at how to improve flows. Um you see the other studies listed there uh for the regional road network. um the conversation we'll have about Yavapi plan and their funding um and also the capital projects that are happening along 89 and Willow Creek Road. Um the long-term water management plan is continuing and the 5-year capital includes improvements for the rodeo ground, the utility condition analysis and the airport terminal parking and terminal development plan. Um so all are included here. Um, priority number four, the natural environment and community livability. Uh, again hitting all of the the points in the plan. So, trail connectivity and outdoor recreation includes the land development code updates. And, uh, Yavapi plan, which is doing a lot of work around the trail connectivity and wildlife corridors. Uh, the parks and recreation master plan is here. The open space acquisition framework um is proposed and the library services expansion for North Prescuit. all here in the in the plan. So, any questions on the link with the strategic plan?

I have a question. Ted Don, and that next to last bullet point, open space acquisition framework. Are we looking to buy more open space? So the framework is about establishing the criteria by which we could consider whether it makes sense to purchase or not purchase open space. Whether we actually make a transaction is up to the council. Um but this is about trying to evaluate what we should be looking for. Okay. And if there are no other questions, we can jump into departments. So, community development is first and Chelsea Walton.

Great. Thank you so much. Good afternoon, mayor, mayor prom, council members. Chelsea Walton, community uh development director, and uh my team is the team that services Prescuit's development needs. It's the stellar team over at community development. And I wanted to before we break into the organizational chart just share with you that we updated our mission a couple of years ago and I know many of you may have seen this already uh but we wanted to complement what council had approved for the organization overall. Thus the mission of community development is to provide outstanding development services to support a safe and vibrant future while preserving Prescuit's historic past. So, the department has 26 full-time uh staff members within our six divisions. And drilling into our services a bit going from right to left on our functional org chart here. Uh I'll start with our water resources division. They seek to protect the area's natural resources through the development and implementation of water quality and water resource management strategies. This includes meeting the objectives and guidelines of the current water management policy requirements of ADQ and ADWR. The water resources team also provides technical support for the Big Chino water ranch, operates and maintains the water resources management model and develops water conservation outreach programs. So, a small but mighty team there. Our uh next up is the private engineering plan review team which supports private development efforts within the city and the city's utility service areas through the permitting process. This team ensures that private development complies with adopted codes and standards and also coordinates private development with capital

infrastructure projects and administers the permitting portion of the city's flood plane ordinance. Next up, the planning and zoning team oversees long range planning efforts, processes entitlement requests, historic preservation ordinances and compliance, and various land use permits while providing staff support for a number of cities boards and commissions. Additionally, the division manages our pre-application conference process and and administers our community development block grant program. Uh the building safety team processes permits, provides building plan review, conducts inspections of construction uh for life safety aspects and building code compliance to ensure requirements are met that safeguard the public health, safety, and welfare. Once certificate of occupancies are issued, then the neighborhood services team seeks to continue protecting the public health, welfare, and safety while ensuring every citizen has the right to a clean, enjoyable neighborhood, uh enforcing private property codes and ordinances, as well as resolving citizengenerated code complaints through a process of notification and education to obtain voluntary compliance. That's the goal. And then last but not least is our operations division which provides internal support for the entire department providing for staff development, internal process development and oversight as well as managing our records retention processes. So the community development department usually referred to

Mayor I have a question. Oh yes, Ted, on your previous slide. Yes, sir. Chelsea, I have to use my magnifier on my on my phone. On uh building safety. Yes, sir. We've heard some pres presentations from fire about um code. You know, if your if your deck's your wood deck's worn out. Oh, sure. How do you replace it? How are you coordinating with them?

What an excellent question. Uh, so I think the recent uh the recent um information council has received is relative to the Wildland urban interface code and for that code in particular uh community development interfaces very closely with the fire team. So there are components of plan review that are um are reviewed for wildland urban interface uh compliance and then also inspections. So many times uh because they have two full-time reviewers maybe um one in training and then two inspectors that also do plan review, we are uh training our staff to provide oversight relative to inspections in the field. So that while our team is already on site inspecting other items relative to building code compliance, we can also look at wildland urban interface items while we're there on site, saving the fire department time. Um, and it's not a huge lift for our team. Uh, just requires a little bit of training. So we interface quite quite closely on the wildland urban interface code.

It's only fitting that an excellent question have an excellent answer. Thank you. You're quite welcome, sir. So, the community development department we affectionately refer to as comm is primarily funded out of the general fund as you can see on this slide. Our fiscal goal is to promote cost recovery through our permitting fees. Uh the special revenue uh funds portion of that is the grant monies we manage and the smallest amount from the enterprise fund covers our private engineering and water resource teams. for our next slide. This is the um comdevs expenditure summary minus water resources which we'll cover separately uh next. So right off the bat you'll notice increases from FY25 to FY26. This is largely due to a reorganization of the private engineering review team from public works to community development. We also had one-time expenses during that fiscal year uh due to the department's physical move. And then we were approved for three major projects in um fiscal year 26. One of which, as uh Don already covered in the strategic plan section, um is our land development code, which ties back to council's strategic priority number four, result number one regarding trail connectivity, outdoor recreation, and wildlife corridors. So, any uh questions on this slide from council?

Uh yes, I think we have several, Chelsea. Uh I'll start off. Um several years ago, we uh approved outsourcing uh the plans for approval for our mass developers, uh mass projects up in like Ranch. Um is are we is that currently in effect? Uh how much is that costing and are is it beneficial? Great question. So, we do not actively outsource plan review in the community development department right now. Several years ago, uh there was a mayoral task force relative to building. And one way we helped streamline permitting activities was what we call a um masgraded uh permits for masgraded subdivisions. So, a model site permit, which only takes my team between 5 and 10 business days. Typically, we can get a model site put on a masgraded uh subdivision lot, typically in the South Ranch um uh development in Deepwell. Uh it's open to other massgraded subdivisions as well. But what the larger builders have is a suite of model home plans, which some refer to as canned plans. And so what they do when applying those are are pre-reviewed already approved by the department. We hold them on file and when they're ready to go vertical with one they say we're going to build this plan and put it on this lot. And at that point the team simply reviews how the site connectivity works, how the um utilities interface with the vertical construction for that particular lot and how it works on that site that's selected. So that's the truncated review uh portion and that costs the city

nothing. Um, but we do have uh retained contracts for on call services if the department becomes inundated or god forbid uh flu wipes some plan reviewers out. So uh right now we're not expending funds for outside plan review. Okay, thanks for that clarification. Uh we got Patrick next. Thank you. Um so see kind of a wide variation from fiscal year to fiscal year on other services and charges. Can you explain that?

Yes sir. Great question. And could you imagine we prepared for that question. Uh so the fiscal year um 24 to 25 that line captures um in addition to our grant monies it also captures our um our our rollover grant monies. captures um projects that we had approved that that did not get um get done. So for that 1.1 million in FY26 um that included the land development code update which we budgeted for about 200,000 um it also had our operational analysis our um which is coming to council tomorrow uh from the consultant a fee study update um that is also uh coming to council um in the next few weeks. Uh so those projects were not approved obviously the prior fiscal year and they um bumped up the um the uh dollar amount on that line item between FY25 and FY26.

Sorry. So keep going. So then projected in the is 736 for the fiscal year that we're currently in and then next year it bumps up another half million.

Correct. So, we're not expending all of the um the monies that were budgeted in FY26. Like I mentioned, the um land development code project did not get underway. So, we've pushed that forward. So, that's why um that amount has has retained over to the FY27 budget. And then the FY27 budget also um contains budgeted monies for the U general plan update as well as our historic preservation master plan update. Um, so we're not going to spend everything budgeted. We're not um going to spend everything for this fiscal year. And some of those projects are going to be wrapped up like the ops analysis and the fee study and then the new projects that'll be underway um shortly or the land develop or the other ones I mentioned.

Thank you. Okay. Any other comments? Sounds like you got a lot of irons in the fire.

We do, ma'am, and we're happy to have them. Any other questions? All right, we will jump on over to the water resources uh division portion. So the water resources uh division is primarily funded out of the enterprise fund uh with um amount coming from the debt uh debt service category that's primarily for the big Chino water ranch and then small pro uh program revenues which are primarily reimbursement district uh fees uh mostly in the Chino area. And then this is the um expenditure summary for the water resources division only. This budget's biggest expenses are for outside legal support from different firms for legal legal matters such as the Hila adjudication and decision order filing with ADWR as well as consultant support for the long-term water management plan which correlates to council strategic priority number three, result number three. uh the capital outlay line uh toward the bottom there is primarily our management for the big Chino water ranch uh property. So any questions on this slide? Mayor. Uh yes, Mary, just to confirm that I'm understanding it correctly, the numbers that you have for the community development expenditure summary, uh is the water resources expenditure summary pulled out of those numbers or is that in addition to?

It's in addition to it's separate from Thank you. Thank you. I was going to have a question about legal fees. It's just a non it's just never ending, right? Uh, I think everyone has a budget for uh, water legal fees. Are they going up or down or they about the same? That's a good question. I'm going to phone a friend on that one.

What I will say is it it changes. It depends on where we're at in the adjudication. So, this is about the adjudication primarily and as a trial comes up, like we had a trial about a year ago, the the legal fees went up quite a bit. Um, right now we've been in a little bit of a lull, but I think we have another trial coming up this fall. So, we'll start picking up. Um, and so the answer is per based on a yearly basis, they're about the same as they have been the past two years, and they probably will be about the same the next two years, but it will depend on where we are in the litigation

and and who's bringing these trials to us. These are just trials that are part of the adjudication. So the way that it works is the state sets up an adjudication. Every interested party joins in. Um so we're one party out of a hundred and the trials that that keep happening are just based on different areas of the u of the water basin. So we had a trial like we've talked about about a year ago relating to specifically to the big chino basin and dealt with that. There are some trials that we don't need to participate in because it doesn't impact us at all. And so it's just ongoing, but the trials depend on what uh what water basin they're referring to at the time.

And then there's the appeals. There is the appeals, right? Okay. All righty. Thanks, Joe.

Great. Thank you. And then uh my last slide and contribution to this meeting is our personnel overview. And as mentioned previously, the jump between FY25 and FY26 represents an organizational shift rather than new personnel being added to the department. So we have a total of seven employees now reflected in comdev that were previously public works. Three water resources, three for private engineering, and then one um inspector that's funded out of enterprise funds. Any last questions for me before I turn it over to Rex services?

Well, we'll see you again tomorrow. Yes, ma'am. Thank you very kindly. All right. We're here all day.

Okay. Thanks. Good afternoon. Oh, it's kind of loud, isn't it? So, good afternoon. I'm Christy Das Tran, your parks and recreation director. Earlier Don mentioned our mission statement and the uh first five words in the city's mission statement are we improve quality of life and that is exactly what recreation services does. Anything and everything included in this budget are reflected in our mission's first five words. The mission for our department is we improve quality of life by building community connection through recreation. So there's a lot of intersection in there. Um our department, recreation services department is made up of five divisions. Um our facilities maintenance division and they take care of all of the city assets um to include the remodel of this building that we're in right now. our uh park man park maintenance division maintain all of our parks, landscape, lakes, and all of the um support for recreation programming. Our recreation division and administration division is a little bit different this year. So, um it used to be just administration. And this year I separated the two so that way we can have very specific sustainable operations to focus specifically on

recreation. And as mentioned in our master plan update that you all had last week, some of the top items that our community want are community events and that's where a focus of our recreation division will be. And then the other division is administration. They take care of all of the business operations. And then within that section, again, we'll look at more efficiencies and sustainability in that section to include going after very specific grant funds as they come up. Um, we have our uh trails and natural parkland division. The other move that I made this year was when forestry was previously with fire department, they transitioned to recreation services and they were a section underneath the park division. Um, and our trails and natural parkland division was a division of one person and a handful of volunteers. And when work needed to be done, that person would go to the parks division manager and say, "Hey, we need this this work done." And it just created a really clunky flow. So, we moved the forestry division underneath the natural parklands and trail because of the alignment and the philosophy of the work and that made really good sense to us. Um, and then of course we um had the oversight of the Antelopee Hills Golf Course. Um, and before I jump into the next section, I wanted to talk a little bit about metrics. Um, so sport field utilization, I'm going to go over just a handful of these. So sport field utilization. Um, in one year 13,44 hours were reserved. We prepared fields for games and

tournaments 800 times. and we hosted nine or excuse me 18 tournaments. So those are metrics, right? What we're doing and what I want to talk to you today about is turning numbers into people. So those 13,044 hours of reserve field time, usually a team reserves a field for about an hour and a half. Um there's about 15 people on a team and that flips to serving 260,000 people. That is the number that we need to focus on because that is going back to our mission, the quality of life. those tournaments, those 18 tournaments utilizing a uh calculation that we received from the um tourism division um had an estimate estimated impact of $5,600,000 18 tournaments. We have ramadas and we reserve ramadas. We reserved 667 ramadas. Some of them are big parties, some of them are small groups. So on average, if there's 25, we served nearly 17,000 people. Our special needs adult program has um we host three a month. Uh every month we serve about 200 participants, but each one of those participants, other people bring them there and hang out there. So in a year that program serves about 7,000 people. Our special event permits, we issue 64 special event permits. Some of them are,

you know, Christmas city the light is, you know, a 10,000 people. Some of them are smaller. We figure a 5,000 participant average. And that brings us to a over 300,000 people served. And then our trails and natural parkland. We have 152 miles of trails, 5,57 acres of natural parkland. We have 75ish over the hill gang uh members. Their work contributes over 10,000 hours of volunteer labor for us a year. That's probably how we were able to pull off the oneman show, right? But we have trail counters on some of our key trail head areas and those counters um were about 685,000 people crossing those counters. So we're estimating about a million people a year on our trail network because there are a lot of trails and a lot of way to get onto a system. So when we talk about numbers and data and metrics, I want to flip them to people. And we serve just in this small highlight nearly 2 million people a year. And that's what this budget reflects. Uhoh, I went the wrong way. Lois, thank you. Mayor. Uh Christie, I had a question regarding um you're one of the few departments I did see uh temps and we have a I've only been here this my third budget, but we have a history of turning temps to people, full-time people eventually. So just trying to understand with four temps, I think is what I'm seeing on your chart here. um you know is this something that is this your strategy to use temps or is your strategy to try out people and have them

turn into staff eventually? Um our strategy is both. So um we we do have one temp in our uh trails natural parklands and the ask is to make that a full-time permanent position. But we also need temps uh seasonal work in our parks division um and then in recreation division. So scorekeepers um umpires uh sport officials. So that's why we need need the balance of both

and the folks that are down in the forestry crew. Those were primarily uh we needed the temp group for them primarily for the grants that we had had um but we're complete with we're completely finished with all. So that's a strategy to use grants and when your grants done. Yes. Okay. Thank you. You're welcome.

More generally on that if I can just jump on. Um more generally we've been looking at temporary positions and where we find there's a temporary position that's been filled by the same person for two and three and five and seven years. we're trying to be honest and transparent about that's actually a position versus where there's more turnover and more like grant funding or that kind of stuff. That's really a temp position. When we shift um temporary positions to full-time positions, we also at the same time try to reduce the temporary budget um so that we're not creating a a situation where we're adding more temps all the time and they're continuing to grow grow headcount. But it is something that we've looked at in this budget and we'll probably look at again next year is if they're really a full-time position, let's call them that. Um, and if they're not or and if we need to call them that, let's make sure the budget reflects the shift and not just the double count the revenue or the the expense if that makes sense. Hey Ted,

I like your idea of uh common denominator using people and and I I would go one step further and disagregate it and compare it to the community. Like you've got 220,000 people using the fields. We've got a million people on the trails and and whatnot. Um, but I'd like to see how that's broken down into age groups to make sure that we're not just appealing to one segment of the population, but we're appealing to everybody. So, little league, uh, youth sports, uh, the basketball courts are are p probably a prime example of a of a athletic facility that's dedicated to a certain younger age group than say Garing and I.

Yeah, I think I saw you out there Friday night. Um, but thank you, council member. I will look into that. for the things that we have we have control on in terms of registration and participation numbers. We can certainly do that. Are we ready, Mayor?

Um yes, we have Mary. Just to follow up on um Councilman Gambboji's comment, uh I'll just say that when we're looking at something like the little league games, sports for youth, uh if you're just counting the actual participants, that's one thing, but those activities address the need and the desires of people beyond that, the families, the grandparents that come to cheer them on. So, it's not just the actual people on the sports field, but everybody in the stands as well. At least that's how I can see it. Thank you for being an advocate because that is exactly where I wanted the thought process to go, right? It's it's more than that. It's um I I think I shared that that this people make their plans around recreation. So all those teams and then those little league kids and adults, that's their new friend network for for the at least next 10 to 12 years until the kids age out or something to that effect. And then the special need group, right? So So you have an um I think I was with you with you, Lois, at the farmers market when someone came up and had just moved here and has a special need adult and was like, "What do we do?" Connected her. So, a brand new resident in our community and her Oh, it was with you, Ted, and her special need adult daughter now have a new network and they have people that they can um socialize with and and not um not be um sort of subjected, if you will, to that like loneliness path. there's a path now to um to joy and to happiness and to socialization. And those those small um those small moments that take place in

those two places at the dog park, on the trail, at the pickle ball court, like they take place all over the place in recreation. And again, that's how people plan their day. Um thank you. All are you uh is the dog park under your umbrella? Yes. Okay. because that's been a huge success. Yeah.

Yeah. And I just wanted to comment um I think you do you're doing a wonderful job maintaining the cleanliness and uh state of repair for our facilities because there's nothing more depressing than a weedridden rundown vacant park. It invites blight and all kinds of trouble. So I think we're doing a wonderful job.

Thank you. Our parks I greatly appreciate that and and it was reflected in the master plan results, right? You saw a lot of that how people felt as though our parks were were welcoming and clean and well taken care of. And so, thank you for saying that because the team that actually does the work is sitting in the back and I'm I'm have no doubt that they're they're appreciative. They're asleep.

Okay. Any uh any more questions? Okay, continue. So, this is our budget. Um, by and large, it's the general fund. The enterprise fund is golf, and we'll talk a little bit about that here in a bit. Um, special revenues. Um, most of it is grants, some donations, and then our programming is 6%. Um, my goal is to increase that 6% again as part of that programming emphasis. Uh, recreation services budget. So, um, I am here to present a savings of about $8,000 from our current fiscal year to next fiscal year. So, am I done?

Wait, no, not yet. Um, it again, it's primarily due to the forestry grants that are done and and wrapping those up. So, that's that's the primary reason for the the savings here. Um I I'll just go until you stop me. You good with that? Um let's see. Got a lot more to go. mostly seen the savings of the

um so if you look at the um the FY2526 like personnel budgeted was 4 million85,000 and this fiscal year 2627 is 3,800 and then um the charges for services etc. Uh and even with the capital outlay at the very bottom total expenditure category um this year ours is 11,928,000 or excuse me FY27. See that? Okay. Um Oh, are we ready? I'm sorry. I'm just cruising over. Okay. So, golf um

uh golf operations. So Mary, I'm so sorry I'm slow on the U button pushing. Going back going back to your um uh previous slide. No, that slide. Uh from last year to this year under capital outlay 1.2 million jumped up for the projected for this year 4.5. Was there a big ticket item happening this year that made that happen under capital outlay? Uh there there is. It's primarily land acquisition that's that will be fully funded through grants and and I'll I'll jump to that moment when when we talk about the capital. Thank you. You're welcome.

Uh so golf um is managed by Indigo Sport. We have a management contract with them through 2029. Um it is uh they average about 19 excuse me about 90,000 rounds a year. So that's easy flipping the number to people, right? So that's 90,000 golfers. But what that does not include um are uh the any lessons instruction um practice range and it also doesn't include anyone for banquetss, food and beverage. So definitely serving more than over a 100,000 people on our 36ole golf course. Uh this anticipated

Yes, Ted. Do you have an idea of that 90k? How many are residents and how many are non-residents?

I I do not, but I can get that information to you. Um I I I've been told the majority are residents, but but resident is loosey goosey, right? Because if you live in the pocket of unincorporated city of Prescat, but it's Yavapai County, you're technically not a resident, but you're surrounded. Um, if you are, if you live in Williamson Valley, you're technically not a resident. So, if so, that it's a little bit tricky, but I would say our within the 90 mile range is kind of what we use for tourism. Most of that is local.

Mr. Garing. Uh, thank you, Mayor. Uh, Christie, with regard to Analopee Hills, I I get quite a few complaints about bathroom quality and condition out there and some about building condition. And I'm wondering if uh the capital outlay projects I see here are going to deal with that.

So we're actually dealing with that right now. Um so the um some of the restrooms have already been taken care of. We're wrapping up the restroom that's um next to the Centennial Center and then we have one last one to take care of that should be addressed in the next two weeks approximately there. Um the facilities maintenance takes care of the clubhouse and the centennial center. Um we the the drainage is is old, so we're out there doing a lot of work on that, but the but the restroom situation, the course situation is being addressed. All right. Thank you.

You're welcome. So, um in terms of use Oh, I'm sorry. Did you see him? So, I'm just curious if there's any uh discussion of increasing revenues by increasing the cost to use the course and if there's any sort of following up on what was said between residents and non-residents and this is a course supported by the city. Is there any type of tiered pricing being considered that could increase revenue?

Um, so right now there's not a tiered pricing considered. Um there I have talked to the GM and the district manager about a a small incremental increase and um and what that means is $3 increase per round. Um but the thought is that that would be something that we could could implement year-over-year primarily to incre to address just general expenses but then also perhaps really address some bigger capital projects that way. Um, but back to the resident non-resident it we the golf course uses a dynamic pricing system. So you you you know you go online to the tea sheet and the um the price in the you know your tea time at 7 in the morning in the summer is more expensive than it is at 3:00 in the afternoon. So that's why the resident non-resident make it difficult when you're when we're using that dynamic pricing. Thank you.

You're welcome, Patrick. Yes. Thanks. So, Christie, what's um what are defined as services in the budget

expense? Oh, most of that is hospitality. So, um so for their operational expenses, food costs because they have a rest, well, the main restaurant and then also the catering restaurant. So in the FY26 budget it was 689 and FY27 budget it's projected to go up 200,000. Yeah, I can I can dive into the details and get them back to you, but by and large that's the majority of the of the um service increase

of the restaurant operation itself. Um yeah, actually looks like Lars has a quick answer. We we did receive the budget request from the management company and they had um indicated some larger maintenance needs on the course. So that's what that represents.

Thank you,

Lois. Yeah, Christie, we've gotten some uh public comments about um the the rounds, the pricing for residents versus non-residents and and uh folks here saying, "Hey, I'm taxpayers and when I go to the valley, I don't get the price of the valley's, you know, local. I have to pay more. So, why are we not doing it here?" And I hear you about this dynamic pricing round model, but I would think there would be a discount if you know if they were doing discounts for heat, it'd be in the morning you'd get a uh you'd get paying more. So, I I would like to ask that you benchmark um in the coming year how this is handled um amongst some of the bigger golf course communities in the state, whether it be down in the valley or whether it be down in Tucson to understand if we are treating our taxpayers and residents fairly or if we can generate some of this capital money needed for golf course improvements from folks that are going to come up here and still view it as a bargain compared to rounds down at their home. So that would be a request for this coming year is to really better understand this dynamic. I'm not a golfer, so I'm just listening to the golfers out there in the community. Thank you.

Absolutely, we can we can do that. I think also the benchmark needs to align with uh tourism initiatives, right? So, if we're looking at um golf and trying to market to the Phoenix metro area to the golfer to come up here in the summer to help increase um tourism dollars, right? So, we need to make sure that we're balancing that and I'll roll that into the analysis in terms of what we're benchmarking and if any municipal courses also have that type of um initiative. Well, and I understand seasonality because a lot of golfers here head down to the valley in the winter months and they're paying for hotels and they're paying for dinners and they're they're generating tourism dollars and they're paying apparently more for a round of golf. So, so I just want to make sure if you're going to include the tourism thing, we're also comparing apples to apples and oranges to oranges. So, thank you. Thank you.

My pleasure, Madame Mayor. Yes, Mr. Gambji. Uh um Christie, I think there's a number of things to consider. One, uh there's that seasonal switch between Prescuit and Phoenix. So, in the summertime, Phoenix wants to come here. Mhm.

So, so you I think you you really need a huge disagregation. You need to do it seasonally between Phoenix and here. Uh I'm hearing complaints, well it's hard to get on. Uh and then earlier when I asked about is it resident non-resident I think there's uh we need to have a response if the taxpayers in Prescuit are paying for the golf course and someone that it whether they live on Williamson Valley or Dewey or Prescuit Valley or don't live uh live in the city of Prescuit and don't contribute taxes I think we ought to evaluate what would be a market feasible rate for them. Taxpayers get one rate, non- taxpayers get another rate. And and so when you when you address that on a multivariate perspective, you're answering the taxpayers's questions. Uh you generate more revenue. uh you can address the burden on the golf course and then uh if we did this seasonal thing comparing us to Phoenix then uh we might have a better balance in terms of what's marketing um feasible. Um so we could generate more revenue, we could address the taxpayers concerns, we could address the traffic on the golf course. So it could be a multiple win situation.

Okay. Yeah. Thank you and thank you for the feedback. Um before we jump off this page, I do want to talk about um one of the capital initiatives that we're going to be working on. So um in terms of finding a tea time, uh the north course uh we're going to take a 2-year capital initiative to build some forward TE's. um it's it's a long course and so by putting forward TE's in it will do a couple things. is it'll increase the pace of play which means you can shorten your tea time cadence right so if you go from a 5minut cadence to a 3minut cadence that provides about a 67% opportunity to increase tea times so um we'll we'll do 7 FY27 and then we'll do 7 FY28 and you're like wait that doesn't math up to an 18hole golf course because we do have a couple par 3es and some par fours that are a pretty decent distance. So

So how many T- markers would you have and what would be the total distance on the course? Um well that we there's currently three T markers. So then there would be four. The current distance would stay the same. It's just that fourth one would change. And what that changes to, I don't know. I I knew you were going there. And how much is that extra for the T- markers? How much is that budgeted for? Uh that that'll be in the capital. Okay. Yeah. All right. Got it. Christie. Oh, excuse me.

Council, if I can just quickly jump in on the fund summary. I'd like to point out the fact that the first you can see in fiscal year 25 the the fund paid for its own operations, meaning the revenues covered operations. The general fund. The bottom line here is that what's required from the general fund to transfer in to make this fund whole. Um, so there's good news here is that 25 was positive and we're projecting the future to be positive. Even with increased expenditures, they've kept expenditures low. The the charges for services do not include the revenue uh increases that Christy has mentioned for green fees. So we we went simply with existing rounds, existing prices. The increased activity allowed us to budget for a little more revenue. So these are conservative numbers. We think that over time with this trajectory, the fund will be able to pay for capital as well. But you can see there's some transfer in just to help pay for capital expenditures next year.

This is a much much better looking picture than it was years ago. Thank you.

Are we ready to go, Mayor? Okay. Um, so recreation services capital. So this fiscal year, West Granite Creek Park. Um, this is, if you recall in February last year, many of you took a field trip. Uh, you gave staff direction. Then in October, October or November, um the the council approved a site plan and so this request is to address the funding for that site plan. Primarily, it's engineering, some uh roadway circulation, um and um and and ADA accommodation is primarily what that that um cost estimate is. um pavement preservation that's specifically for um pavement in our park system.

Madame Mayor. Yes, Ted.

I just did another site inspection on the West Granite Creek Park this morning. Um, in the old park where we had a parking lot, mothers with strollers to get to the to the U splash pad maybe had to walk 30, 40 yards to get there. Uh, now it's chained off, so the best you can do is maybe 100 yards. I'm not uh probably three questions. You got a water tank out there. Where's the water come for the water tank? Secondly, uh you you planted trees out there. How do they get water? And third, where is the drop off point?

Uh the water tank is being hauled in and it's being funded through um through the neighborhood uh through the coalition. Um the trees are being watered from that tank to get established. Is that drinking water or is that uh treated waste water? I

I I believe it's drinking water. Um the the trees where they're planted are within sort of a waterway. So right now that water is used to establish the trees and then once they're established they will get water with rainfall. Um and then last the drop off is not there yet. That's part of the $500,000 improvement. So, with that, I do know that we had some uh email uh chatter. I know I'm going to deviate a little bit from the budget. Um but um but we know it's going to be a challenge as as Ted just mentioned that space held anywhere from about 35 cars parked reasonably, you know, maybe 50 that were all a mess. So, we don't have that anymore. Um, we've been able to identify an area on the back side of the park on land that we own where we can scrape off and pick up about 10 more spaces, but we're still 25 short. I've connected with the hotel GM. Um, they're concerned because they have some events. So, we're going to coordinate communication and putting some on-site signage, pushing information out through our social media, through all of our communication networks to encourage people to plan their day around these large events. So, that way there isn't this parking conflict. But, um, with that park restoration project, it will put a lot of pressure on the parking in that area. I mean, you know, the area, it's tight and it's busy. And so we're we're going to do as much as we can to communicate with our users, with the property owners, um, and our patrons. So it's it's it will be a challenge.

Patrick. Yes. I was at the uh celebration gathering um Saturday ago and just wanted to compliment that organization coalition um they put a lot of love into their appreciation for what we've done um for some of them who live right near the park. And uh yeah, it was just a beautiful kind of almost rededication of the park. So, thanks for that. You're welcome. I agree. It it looks wonderful. And Mr. Ruby,

yes. I just want to point out if you walk, and I did it I walked the other day because I saw the complaints. There are about 60 to 70 parking spaces just west of Sam Hill. And it takes, and this is me with a bum knee, walking just under two minutes from the edge of that one parking lot down to the entry of the trail head. I think it's important to let the public know there is still parking there. The strip of parking that is right like right on the east side of the substation, like that's the parking that we made. I walk that place. It's in my neighborhood. It is very very rare when that parking lot just to the west of Sam Hill is filled up. So two minutes can be a lot if you have like a toddler and a three-year-old. Like I get that. But there is going to be a drop off point. I think it's going to be important that our public relations really explains effective ways. There were families there. There were kids there at the event on Saturday that Patrick described. I think there's a good strong community response to what we did there and it's a matter of just explaining the ease with which it can be approached.

Thank you. And that will be part of our messaging in terms of where where can people park and so that way it it reduces the frustration, right? Because the last thing you want to do with a car full of kiddos that are excited about this is pull up to a space and there's no lot. So just to make it easier on you, you can park on on either side, east or west, because there are spaces and just make it part of their plan. So that'll be some that'll be information that'll be coming out of our office. Madame Mayor.

Yes, Ted. The the thing I'm concerned about and one of the reasons I didn't like the idea of the park parking going away was that we have mothers with strollers parking in the Sprouts parking lot and crossing Sheldon. And that's the last thing I would like to see is mothers crossing Sheldon to get to that splash pad. And I'm concerned that as it exists right now, that's closer to the splash pad than the current parking we had. It's a valid concern. Okay. Uh Lois,

thank you. So, we are having an unusually hot spring. Um you're telling me that the drop zone is in the plan for fiscal year 27. Is it what's the timing and is there any possibility to accelerate getting the drop zone installed? Um the well we the budget has to be approved. We wouldn't be able to expend money until July. So it's not it's not going to make any won't make a difference. It will make a difference to thousands of moms who are about to start writing emails to us. Poor language on my part.

Okay. Um the drop off zone as part of the project, the construction project cannot be done in three weeks. We're opening the splash pad on Memorial weekend. So I'm not suggesting it be done by Memorial, but I'm suggesting how quickly can we get it in so they can enjoy it at some point before the fall arrives. Is it possible to accelerate? No, it's not.

So, if we're not going to open the drop zone and make it easier for moms to drop all their heavy stuff, um I don't know. I I I thought all of it was coming with an opening. I did not know we were putting this in pieces. And I think that makes us need to rethink the the chaining off of the current part of the parking lot that was supposed to be a drop zone. I think we really have to rethink that because I do think it's kind of dangerous and if and exactly what Ted just said is what's going to start happening because it's paved and they can get there. So, I'm sorry. I want to make this happen because this is the time of year it's really important to families.

Yeah, you're pushing to the choir, Lois. And so I mean if we have to do our own little vote for just the West Kranic drop zone, I'd approve it today. Literally, I'd approve it today.

So what I can do, I need to have a conversation with the fire department in terms of that that safety zone. there may be a possibility that we can carve out a portion of that area where we currently have the the um the gate set. Um so there might be an opportunity there, but again I need to check with public safety to ensure that that's not going that it that it's safe that it'll be a safe space. So, I I will look into that and then get back to the group as soon as possible on what on whether or not if if it's possible, we'll do it. Madame Mayor.

Yes, Ted. I don't see where there's an in and out to have a drop zone. You got an in. I don't see the out. But you got split rail fencing all along the road. That would be the road in. So, uh, in terms of priorities, I'd rather get the road in than to put the split rail fencing up. Cuz I don't know how you put a road in now that you have split rail fencing up.

So, there's not going to be a road in the the plan that was approved is where the current um, uh, gate is. Um, pushed back a little bit where there's no no new improvement. It was like a like a half circle. So you would sort of drive in, drop off, and then drive out and then park up on the top where there already is asphalt parking. There was not going to be roadway going into the park. So they're going to push that stroller on a dirt road. Yeah. And and that's what they've been doing for years. It's been a dirt road since the splash. But it was a 40yard dirt road, not a hundred yard dirt road.

Yeah. Agree. Mr. Ruby, I think what's apparent here is that the popularity of the splash pad is serving a large need in the community and that I would hope within future parks and wreck budgets as we go through other fiscal years, there's real consideration given to the types of recreation that young families will use. And this seems to be a very strong indicator. People like water. They like to be outside. They like to be cool.

I agree. And if you recall back to the master plan survey, splash pads were something that was popular. And I mean the long-term solution is another splash pad or two and it take the pressure off, right? So having having alternatives is will reduce the intensity of the use. Madame Mayor. Yes, Mr. Gambji. As what I saw today and what I hear from the council, this is a park that's been modified to make old people happy and has inconvenienced young people.

I agree. It was um originally open space, but then it kind of morphed into a parking lot because that was the highest and best use due to the splash pad popularity. But then technically, you know, we're trying to return it to open space, which, you know, if you go down just down the creek to Granite Creek Park, you have tons of open space there. So, it's kind of redundant, but technically, you know, there's a group that wants it to be open space, so we're trying to uh accommodate two different uses. Agreed.

Anyway, I think we need to move on.

Yeah. So, let's move on. So, we have so um light pole replacement. This is at Bill Valley Park. Master plan to begin implementation of the and that's part of our strategic plan. Playground replacement. So we have um playgrounds over 20 years old at Heritage Park, Lindley Park, and Goldwater Park. Um and that or Goldwater Lake Park. Um so that's where we'll we will be doing our playground replacement. Um Peine Trail Fencing. This is really um fingers crossed we can get the special land use permit to go up to Chino and we can continue to do that because Arizona law requires that we fence out cattle. So that's why we need the fence because there is roaming and it's not the it's not the cattle owner's responsibility to keep them off of our property. It's our responsibility to keep the cattle off of our property.

Yeah, I was uh I was looking at that. The uh the total, you know, the five-year plan has uh a total of like $500,000 and you're planning on the full length of the fencing, the full length of pee. Why is it a problem if a cow walks across the trail? So, there is conflict. There's like animal cyclist, human conflict, but then also the cattle owner um has challenges bringing their their cattle back. We also don't want the cows going into the lake um or getting, you know, injured on our property. So, that's that's

We've never had fencing before. We have. There's fencing on peine. Mhm. And what kind is it? Is it chain link or No, it's like a barb wire so wildlife can get through there. Okay. That was another concern was uh wildlife. So it'll be like a three strand barb wire with the bottom strand just being smooth. Mhm. Yeah. So the analopes can get underneath. Yeah. And then there'll be like the little switchback so for a cyclist can get in and out. Okay. Cuz I was imagining six foot chain link fences. on both sides kind of creating a quarter and Okay. All right. Well, I'm glad I cleared that up for you.

I feel I feel a lot better. Yeah.

Um so, we're looking to add a a new shade structure at uh Willow Creek Park um facility uh park facility resurfacing. That's the hockey rink uh resurfacing project. And um and then of course the land acquisition. Um that's the large that's the lion share of this. But um that will is anticipated to be fully funded through land and water conservation grant and then some donation through an local nonprofit. And let's see and then that wraps it up. Um I'm I want to go back to the Gateway Park. That's like the largest expenditure, 7.5 million. Um you know, it's kind of I've been out there to the area. You know, it's a beautiful natural area, but it sounds like we're trying to overdevelop it into some big Disneyland. Uh, I know we need a trail head parking area and some bathrooms, but is there is there really a need to turn it into some destination area right there? I mean, can we just kind of keep a light touch on the land? So, so Mayor, that was a project that was already in the queue. Um, and it was actually in the queue to queue up this fiscal year. And so I've punted it um for a future year out. Um, because I would prefer that we wait for the master plan results to come in and the recommendation. Um, yes, we need something out there. Do we need it to that grand scale? Maybe, maybe not. I don't know. Um but but I think when the results come in, we'll have a better understanding. Um with that, this will fill up a little bit more as far as what we have in the future. I hope to see a splash pad or some other water feature, right? But as it relates to this project, um it's it is um the the plan,

you know, was already identified at 7.5 million and so I just kept it in there and rolled it forward. Um it a new philosophy. I would like to change the that specific plan. Um but again that's that's just me the director. This the community's decision and your decision to approve. That's why we're having this uh discussion to the public

because we have to remember that right across the street is going to be uh a massgraded highdensity housing project part of AED. And I'm afraid if we put in this great big huge park, it's just going to be for those residents. They're just going to walk across the street and it's going to be for those residents. So, because we haven't required the developer to put in any of his own parks for his own uh residents. So, I'm afraid we're going to go through all this and the community is not going to be able to use it because it'll become a private park for the uh residents of the new subdivision across the street. So, that's why I'm thinking, let's put in the bare necessities, let the kids run around and play in the dirt, and um use the money for maybe future land acquisitions because there's a few things that, you know, we could probably use the money for to purchase.

Yeah, I I I think Yeah, I mean, again, as the master plan talked about, right? So, taking care of what we have, adding more active parks was another piece of that. So, if land acquisition would include, you know, an active park and sport fields and whatnot, right? Because we've already seen that that brings in hundreds of thousands of users. So, but again, I it's a placeholder right now because it was already in there. So, I I just pushed it out because once our master plan is done, our capital um future, your outlook will look very different. Yeah. It's just kind of evolving as as things go along.

Yeah. Okay. Um and then um yeah. Okay. So let's I think we're look at um so personnel um we are requesting one more and that is the um person who is technically part-time who's working full-time and we want to flip them into a full-time position and that's in the trails and open space section. And then that gets us to facilities maintenance. So facilities maintenance as mentioned is um one of the divisions in uh recreation services. Uh general fund u is about half of its funding. Um and this is um all of the departments contribute toward the facility maintenance. So right so very similar to fleet maintenance and whatnot IT services etc. um the uh the costs in here. Um so we do have a jump primarily in capital and I can get to that if I'm going too fast. I just know that we we have some heavy hitters behind me that I need to get through. Um the the biggest jump in facility maintenance is in our capital and um there is a so this one FY27 is the um second from the right column it's 1.5 million. So, as you know, we had a facility assessment uh done um and their recommendation is that we fund $6 million to get us um where we need to be. And we knew $6 million was not going to pass the sniff test. So, our ask is 1.5 and then in future years it'll probably be very similar to pavement preservation that we're just asking for

a specific dollar amount year-over-year to get us where we need to be. The um the first items that will be addressed are the um anything safety or critical in nature and the assessment identified those for us in terms of their um their assessments. Um the other large items are all associated with the rodeo project. Um and then um a new uh elevator in the parking garage. Let me ask you this, Christie. Um one of the pressing problems out at the rodeo grounds is mitigation of animal waste. It's running into the creeks and uh I don't see anything on here for that. Is there any way we could add that because it's uh supposed to be in the master plan?

So I Well, yeah, I'll hit my phone a friend over here. Right on. So thank you, mayor, for that question. And we are addressing that as part of the utility and infrastructure improvements will include water, sewer, drainage and the management of um animal byproducts is actually a function of our MS4 permit in terms of drainage. So we will include that water. Yes, ma'am. And we will include that in the infrastructure um portion of the project. So but it we have not forgotten that. Okay, good to know. Mayor and Mr. Garing

uh Gwen, before you get too far away, I presume that these new facilities are going to create drainage into Miller Creek that meets the state uh surface water quality standards. Yes, sir. All right. Thank you. Um positions. We got Lois. Oh, I'm sorry.

Thank you. Um I just question about the facilities deferred maintenance. You basically said safety items first and the 1.5 etc. Um why when we get this budget back to us wherever Lars is there in the back. Can we see some plugs going forward in the future years so that we don't get to the point that things are falling behind when we go to vote someday?

That's an excellent point. We and I wanted to also mention how we plan to fund this project. So we were going to propose to council that we would evaluate year on a yearly basis annual basis excess available funding in the general fund that we could let's say revenue comes in over forecast we can allow council to then attribute that to this program so we can look at it each year but we could plug in a number um across all five years. I like that creative option. Um, but I do think it's worth plugging something in. So, we're very deliberate that we are going to maintain facilities moving forward and not let them degrade.

Yeah, that's a good point. We we'll put it in there as a number placeholder, but we'll evaluate it each budget cycle to see what we can fund. Thank you.

Okay, I think I have one more slide. Um, personnel. Um so we did a um uh reduced the number of personnel primarily because we expanded our um contracted custodial services and so we eliminated a position. That's really how that oped out. And before we get to the airport, you know me, I can't leave without saying parks and recreation is about connection. We connect people to people, people to places, and people to nature. Thank you. And thank you.

Good afternoon, Mayor, Mayor Pro Tim, city council members. Uh Rick Crider. I serve as your airport director and uh pleasure to be here this afternoon, although tough act to follow. Um just a few um few things to kind of set the stage. We, as you can see on this uh slide, we have a wide variety of things we do at the airport. We do obviously airport development, operations, operate the facility, property management, economic development. So, um pretty pretty broad spectrum and just want to kind of highlight that. Let's see here. This uh the airport budget is a little bit different than some you've seen. It's uh heavily laden with capital. So, most airports have a lot of infrastructure needs and a smaller operating budget. So, um, we're we're kind of working through this with with finance to see how we can best tell the the story. Uh, this year versus last year, we combined two budgets. We had a landside and airside budget. We combined those into one. Made much more sense to me because it's really a relatively small number. Um, but you see, we still have 71% of our budget is capital, you know, so big projects like runways and parking lots and terminals and boarding bridges and all those exciting things. And then um there's been kind of a focus from this council and councils prior to to balance the operating budget with the revenues collected. So um I put together a few a few numbers that I think are are interesting. Um the you know we we have a very small percentage of the overall uh budget. Uh let's see I I had numbers to put together but a small percentage is is really comes from the general fund subsidy. And our goal is to make that smaller and smaller over time. So goal one is to cover operating uh expenditures with revenues collected. Uh council's been done a fantastic job with that. Proactively investing in hangers and buying out leases and doing creative things that help us be in a better position to correct collect you know uh enough revenue to cover the expenditures. Um but that that takes a

little bit of time. So we're we're moving through that. Uh the second goal would be to collect enough revenue to move into a capital uh budget. And so we cover the matches, you know, the city matches and the and the uh for state and federal projects. And then we uh have revenues that are uh sufficient to meet those what are now general fund priorities. And then in a perfect world, we'd have re we'd have reserves, right? So we'd have reserves that uh cover for the bad day or bad operating day. So uh we are making progress. Um the fiscal year 27 revenues projected are 10 and a half% over the fiscal 26 forecast end of year revenues collected. So uh we're we're slowly bridging that gap. We have four new hangers that are coming online uh this year that'll provide an additional revenue stream. And then we're recapitalizing some of the tea hangers. There are about 150 tea hangers at the airport uh that had just um need door seals that need new LED LED lights. of things that make them more efficient, add value to the the customers that that rent those and allow us to, you know, bring those those uh rates up into the modern day. We have um Northeast Ramp that's uh very exciting. The state was uh proactive in funding uh the first phase, $3.5 million last uh last budget. We have another active request this year for an additional $3 million to continue that. Uh that does some cool things like uh sets the stage for the forest service, gives them ramp that can be used during their peak season and the wild and fire season. Uh it allows us to do a better job with cargo. Uh it also sets the stage for um adjacent land leases where we can do commercial activities like maintenance, repair, overhaul, and um specialized services for aircraft. So um that's an exciting uh move forward. And then uh the north ramp, we're just wrapping up some kind of airfield geometry work that'll allow us to finish the design on the north

ramp and open up new parcels for aircraft storage hangers. Uh we want that private, you know, that P3, you know, public private partnership uh and have uh outside investment coming in to build hangers. And then we have a ground lease, not 50-year leases, but uh 25 year leases, more contemporary. Just want to set the set those expectations. Uh few stats. Prescuit Regional Airport was ranked number 20 in the nation in calendar year 25. We had 390,000 operations. U as a reminder in operations, a takeoff, a landing or or a low approach, an instrument approach. Um last year grew 8.3% over the previous year. Uh we had 360,000 operations in calendar year 24. Um and we saw in 20 2024 we saw 7.3% growth over 2023. So, um, the the picture I'm trying to paint is we went from about 23rd to 20th. Uh, I ran the numbers a few days ago. We're currently around 16th in the nation as the busiest airport. So, um, a lot of good things going on. A lot of that's flight training. Of course, we're blessed with, uh, some very good weather.

Um, but, u, but, you know, we're we're growing quickly. Yeah. I just wanted to kind of add to that. When you look at all of northern Arizona, you know, like from the rim up, I mean, it's a massive amount of territory and there's like three airports. We have Flagstaff that has commercial air service. We have Prescuit. We have Kingman. I don't even know if Kingman has I think they have a slurry bomber station there, but I don't

think they have a commercial air service. And then Paige has a small airport mostly for tourism and private planes. So, uh I think we're perfectly positioned and located to uh serve not only northern Arizona but the state and the uh country because we have a lot of uh activities going on. Even the military now is starting to uh refuel here.

Agreed. I think uh you know we think of Prescuit as a population of about 50,000 residents but the MSA the the area that we talked about with airlines is about 250,000 or approaching 250,000. So, it is certainly an addressable market in terms of fight training, in terms of air service, and to your point, in terms of uh public safety with the And when you're flying commercial, you just go out to the terminal and you check your bag all the way through to Auckland, New Zealand or Nepal or wherever the wherever it is you're going. I mean, we have a worldwide connection right here in our airport. I'll give you an amen. Madame Mayor. Yes, Ted. If uh Rick, if we're number you said 16 now

currently. Yes, sir.

Uh just for those thousands of people that are listening in on Facebook, what would be the maybe the three more active than us and the three less active than us? Well, in Arizona, we're we're still ranked number four. So Arizona uh at large is very active for a training environment and of course commercial service. Sky Harbor, uh, Falcon Field, and I think it's Oh, Deer Valley are the three that are above us in Arizona. Um, Don and I went to to Washington. We were kind of looking at back when we were on the list and, you know, 20 only 20th in the nation. Uh, but we uh were kind of giggled that uh both I think all the DC airports were uh within one or two of of Prescuit. So, um, we're up there with the big guys. you know, we're not Atlanta, but we're certainly number, you know, within one or two of Dallasos, one or two of Reagan National, um, and many airports. So, again, I think the fact that we're Arizona is so busy because of flight training, uh, we're only number four, but that doesn't really, you know, paint a complete picture.

Thank you. You bet, mayor. Uh, yes, Mary. Thank you. Do these numbers is it baked in any change that might come about if the Perkins Ranch Airstrip gets approved and Embry Riddle shifts some of their training flights up there? Will that have an impact on your numbers? And if you project that it will, which which version has been baked into these numbers that it will or it won't go forward?

We have not anticipated that. to your point, it's it's still an active dialogue with the community to the north. Um, we've not tried to bake that in. I I will say that my personal opinion and I think council's opinion has been that that's a good thing. You know, it's a it's a symbiotic relationship. Uh, it helps Ember Riddle grow. Um, you can only put so many aircraft into a finite airspace. So, it's not a threat. It's really more of a compliment. And, uh, if it does happen, I I think if it doesn't happen, it probably sets the stage for a broader discussion. where does it happen? Right? Does that add more runways at our airport? Does it uh should we look for relief elsewhere? So, it's it's a um it's a it's a good and a bad problem, right? It's a opportunity and a threat. So, I think that working uh alongside our our partner to find that relief is important. And you know, the Perkins Ranch is one one solution. I don't think it's a it's not the silver bullet. It won't be the only solution. They're looking at several sides. So, in your numbers here, you haven't made a presumption one way or the other.

No, ma'am. Thank you. Yeah. And uh I think that's going to be on the ballot in November of this year, right? So, so we'll know. Mr. Garing uh Rick uh several uh advisory committee meetings back, it became apparent that the tenants were not happy with the hangar waiting list and that they were not happy with the ingress egress procedures. My sense is that those have been largely solved. I wonder if you could comment on that.

You bet. We have uh we have widespread happiness. we reported back we we took both those policies back to the committee uh last month and we had worked with the PAUA the pilots users um some individuals but um long story short I think that the synopsis is trying to make um the waiting list get people where they want to be ultimately rather than kind of playing this move around game because what happens now is you you go on a list and you get the first available hanger may not be where you want to be ultimately so you you know you move around so there's a lot of process that went into that so we've streamlined And that made it a little bit easier. Established categories. Uh we resolved the concerns. I think you were Thank you again for being at that meeting back in the very end at the last days of December because I think we had a good meaningful dialogue back and forth. Uh that's on the waiting list on the access controls. We're really just waiting for the vendor to change the u there was you know change is hard. You know the new the system the access control system was put in place about two years ago two and a half years ago. um or started about 2 and a half years ago. I guess went into place about 18 months ago. So, you know, there's getting used to that, but one of the concessions was uh to be able to just use the card on the way out. That was amazingly popular as you would imagine. And so, as soon as the vendor gets that change, we'll we'll have that.

All right. Thank you. You know, I would attend more advisory committee meetings, but somebody keeps scheduling study sessions.

It's above my pay pay grade. I don't can't answer that one. Well, to wrap up uh the comments, um we have additional flight, you know, for for the benefit of the council. Um started last October. Uh our load factors are hovering right around 70% both regards. The LA flight was moved um a little bit later in the day. So, we're hitting I'm sorry, a little bit earlier in the day. So, we're hitting the banks in Los Angeles. It's performing much better. Then even with the additional flight to Denver, our load factors are again approaching and hovering around that 70% which is kind of a um kind of dividing line of success, right? Uh success or we need to do better. So we're really happy with that. The airlines happy with that. We've got, you know, ongoing dialogue, but uh some good some good, you know, good news there. And I would say that you know the reason I want to highlight those you know the fast growing pace of the airport you know we're 20 25% growth in the last two or three years is that while we're trying to resolve that subsidy and general fund um you know contribution it's you know you can only cut so much and going back to this chart um you know the vast majority of our expenses is first of all capital uh the next big one is salaries then beyond that we have inter departmental transfer so um it's hard to cut deeply um and I want to just kind of leave that with you as we go into the slides. Uh but we are narrowing the gap nonetheless. Um one of the themes and I'll make two two highlights. One is that we are exiting an era where we had COVID related grants. We had ARPA and Chrissa and COVID uh grants that subsidized our operating uh our operating budget. Uh those have now all not expired. They the grants expired. We terminate. We close them out. we derive the full benefit of those grants um this fiscal year. So going forward, we've got that that difference. So that's that's difference one. Um and I think it was touched on by the city manager earlier about how uh

you know when you have positions that are temporary full full-time temporary positions year-over-year. um that's really not a sustainable model that what what happens from a departmental level is if you somebody may take a job as a a temporary full-time employee until they find another job that's a permanent uh full-time employee. So that creates a bit of a churn as well. Uh so we have you know it's about a two-month training process. We've had some some vacancies that just linger because as soon as we hire somebody and get them trained then somebody else less and so that's become a a real challenge for a fast growing organization. Um just a few stats I put together. we had, you know, the number I was looking for earlier, 13.9% of our uh operating budget as um comes from general fund subsidy. So that that translates to about 6.2 for every every dollar spent from the general fund, we translate that about $6.2 that go into spending and the operating fund. If you add the operating and the the capital together, uh for every dollar spent from the general fund, that translates to $5.4 four dollars uh spent in the economy either through construction or or just you know purchases and then a few years ago there was a study done by the state there's a a 2021 study they estimated that the economic impact of Prescuit Regional Airport is $194 million a year and some change uh so that then translates back to about 52.8% I'm sorry 52.8 uh for every dollar that was spent from the general fund. So, I just wanted to leave you with uh some good news that uh while we're trying to narrow that operating subsidy and that capital subsidy, um those are those dollars are being amplified in the community uh through through expenditures. See, uh running through the the operations, um I've already touched on the fact that we've had some some change in our uh grants. Um you'll see the big the big differentiation here is the capital. So we in some years we apply for grants and

maybe they're kicked forward a year. So those numbers change quite a bit. What I will tell you is we work closely with finance and city manager to spread those across multiple years and really look at the spend not just the grant because if we get a and we'll have this uh happen this year we get a trunch of grants from the FA then the state will follow this closely behind with the state grants. Um but we may not spend them for two years. So to to to lock all those dollars up and all the general fund um contributions up in one year is not really realistic. So we we have spread that out a bit but you can see the big fluctuation. The operating uh budget itself is fairly flat but for the but for the um the grants the operating subsidy I'll stop there. I'm a a fast talker so answer any questions on this slide you might have.

Any questions Mr. Ruby, it looks like in the uh capital funding sources, you have a doubling of federal grants from 15 million to 30 million between fiscal year 2030 and 2031. Are you jumping ahead? Why don't we go back? I thought you were I thought you were done. That's why I asked. I can wait. I can wait. Haven't got there yet. Would you like me to Okay, you can stay to your program. I It sounded like you were finished. So I am very fluid, very flexible.

Keep going. All right. Uh let me go to the next. This uh we touched on earlier. Um we have 26 uh personnel at the airport. So um a little bit, you know, again a pretty pretty lean operation. Only 12 of those are permanent full-time. So with the support of finance and the city manager, we're suggesting three conversions. So, uh, from full-time temporary to full-time permanent, those will be in our operations and our admin, uh, areas. Uh, so, uh, a big change there, you know, statistically. And then, um, if there's no other questions, I'll go through the, uh, the capital. We kind of break this into two pots, one city only and one, uh, grant funded. So in the perfect perfect world, if we can put a project into an FA grant, which means the state will fall with a state grant, we get 97.5% of that project funded. So doesn't get much better than that. That's the perfect world. Uh unfortunately, there are things that the FA and the state um either can't fund or those are very low in the priority uh chain. So this is the uh city-only projects. We uh mentioned earlier, the bottleneck hanger complex improvements. Those are mostly LED LED lights, but also some door seals. Uh just kind of recapitalizing these older facilities. That'll allow us to get the uh the rents up a bit. We already have a kind of a graduated scale both uh you know pre uh pre-improved and and post improved. So that's uh we're forecast for 27. Uh the admin building is u an older building that's been modified a few times. uh this is really for the design of that uh rehabilitation. Then we anticipate in a 28 29 time frame uh actually going back and making a little more functional moving offices where they should be. Um

I was going to ask is there any way to make it ADA compatible so that we can use that beautiful meeting room upstairs instead of being in the old terminal in the hallway.

Not ideal. I know we've um and it anything's possible. What we're envision is to use that truly as a an admin building that has, you know, we can make accommodations for employees but not so much open to the public. Uh Ember Riddle and their new safe complex has made their they've got a nice meeting room. They've made that available a couple of times. Um ultimately we think that the the new ARF and stone equip stone removal equipment building will have a training room and that would be a great place for it. Uh so it's kind of a limping along um you know scenario. Um we we you know and we've had this conversation with the board chair many times and really the advisory committee. Uh it could be here. It could be a number of places. I think people like having it at the airport. Um we feel kind of guilty about having a meeting that's open to the public upstairs that's not ADA compatible. Uh so it's just u it's just trying to find the best of a bad situation and that's kind of where we're at now. But to answer your question, we did not envision an elevator for this building.

Okay. Uh Lois. Yeah, I was I thought there was because when I was looking at the details in the capital plan for project 2607, it's a justification built in. Oops. I'm sorry for the microphone. The uh the details in the capital plan for 260 with this building's rehabilitation. It said the justification lacks ADA compliance health and safety attributes. So I thought, yay, you're adding something to allow people to get up to the second floor. So this is not to get up to the second floor,

not to get up the same floor, but we it will have ADA ramps. It'll accommodate for the employees of the building. Uh there's no ramp out front. So to go from the terminal to the office building, you've got to go either way around or upstairs or so forth. So it will have an ADA ADA component, but not to the extent of adding an elevator and getting getting the public up there. the other and and again this is pre-esigned so it's early to tell but we're not sure that the loading of the second floor is really compatible with putting 40 or 50 people up there. So again all that will be you know we come out with the with the design. Nobody wants to go downstairs that fast. The uh airport entrance improvements we envision a new sign uh some you know kind of sprucing up the entrance. When the existing uh entrance sign was built, there was a different way that Will Creek uh went directly to

What location were you talking about for this new monument sign? It'll be at the entrance of Highway 89 and um McCertie McCertie Drive. Oh, so on McCertie, right? Okay. U which side of Mccertie is yet to be determined. Um again, the old Wool Creek uh kind of deaded into, you know, went directly to the airport, so the sign was on one side. Now it's a little bit different. So, we'd like to get a designer involved and put in the right place. Is it going to be like an electric sign?

Uh, it could be. Again, pre-esigned. So, this will be the we'll go through the design, look at the options, uh, consider our budget, see what we have to work with. Uh, but I think we can do a much better job or we can do a better job as far as, you know, um, recognize the airports there, the landscaping around it. Just trying to up the game a bit in that regard.

And then is that way finding, airport way finding, is that more signage too? There'll be signage, uh, you know, directional signings, um, as you're near the airport and then, you know, to the rental car area, to the parking lot. Um, you'll see down the way we're adding some parking. You know, the pavement preservation is largely parking lot with additional flight. We have several times a year that we're really challenged with parking. Uh, so this will be additional parking. So, it'll it'll go to long-term and short-term parking. Uh, we're changing some of the two-hour parking for the restaurant, for example. So, a variety of things, but the way finding will be to help people find the FBO, the Forest Service, you know, the at large.

So, it's just going to be on airport property because I always call that airport the stealth airport because there's really no signage on 89 or on 89A. We have A DOT has huge signs that say, you know, Larry Caldwell 10 times, but how hard would it be to add, you know, Prescuit Regional Airport next right or, you know, absolutely we're lucky just to have an get an little airport airplane icon on a few signs and especially when you go on 89 to that roundabout.

I I bring it up on my phone and it says Deepo Ranch Road. I mean there's nothing there about airport road, terminal road and we really need some signage out there. Agreed. And is there any anything in this budget?

Well, so uh a lot of times on state roads, for example, in my experience, uh you can pay for the sign, but the so it's at your expense. So this would incorporate um signage on state highways that have maybe existing uh poles and and networks in place. It would be uh consistent way finding on the airport property. So it' be a a poperri be a mix and again step one is to kind of design a comprehensive solution to that. Um we're we're starting that now with some of the striping and the markings in the terminal parking lot, but we need to push that out and really to your point go back so people that are coming from Cottonwood can find the terminal uh or the people that aren't as familiar with the airport.

Okay. Because if you miss that uh if you're heading north and you're at the uh roundabout and you miss the turn because there doesn't say airport or anything out there, you end up driving all the way to Chino and then turning around and coming back 10 miles one way. Well, and that's my point about the monument sign. It may or may not be on the right side of Mccertie, right? Because it's it was really put in that place during a different different era. So,

okay. Thank you. You bet. Uh, see, terminal development is mostly lighting. I skipped over that one. Um, we've got, it's a new terminal, but we had some, um, kind of proprietary lighting those put in, so it's failing. Uh, so this is, uh, by and large the lighting improvements for the terminal. Uh, we pushed the uh, some some, you know, some other improvements to fiscal year 28, but we feel like the lighting is really important. I've talked about the payment preservation that's the parking uh hanger make make ready is a uh facility that was uh vacated by ember riddle as they built their new uh safe or what they now refer to as their eagle north campus. Um they vacated a building and some ramps. So making that ready for the next tenant is important. We also feel like there's an opportunity to uh combine some other administrative things, other federal agencies that need administrative space that could be come out of an older facility. So, it's kind of a a shell game in some regards. Uh moving shell games probably the bad use things to use in a budget presentation, but um moving moving people from place to place so that we can make room for the next activity. Uh then of course capital equipment and vehicle replacement. Any questions of this slide? This is the city only slide.

Let's see. We have Patrick. Yes. So on replacement vehicles 1.4 million. Is does that come through our fleet management or are you an independent? Uh it does go what does go the financing or the funding comes through the airport enterprise fund but we do work with fleet. Uh the 1.4 million is a bit of an anomaly because we still don't spend that much money on equipment. It's a new firet truck. Uh so we're we uh envision the down payment this year as we go through and order the equipment um it could be as much as a two-year delivery time. So the bulk of the money the funding would come from a letter fiscal year but that's why that number is so large.

Thank you. You bet. Any other questions? Let's see. Jim, did you have a question? Okay. All righty. Good to go.

Okay. Uh the uh the better part of the capital program is where the state and federal government put most of the money into it. So let me run through that real quick. Uh the first project is the extension is the environmental assessment and planning uh to wrap up noise contours and u forecast and all the things that uh take us up to the environmental assessment. So that'll start um this year. The scope of work is with the FA now and uh we we anticipate a grant for the EA uh this uh this fiscal year. Taxiway D rehab is a widening. This is the taxi way that runs between the primary runway and the forest service for example. So it goes essentially north south or north northeast southwest. Uh we want to both widen it so we can have two-way traffic for the training aircraft um and also for the next generation of of fire tankers. So we know that the very largest aircraft that operate from Prescuit Regional are the usually the fire either military or forced service supporting aircraft. So that taxd will support both of those missions. Land acquisition uh the 27 uh component is for the south deep well ranch. We received uh the first 1.1 million from the FA to purchase that land. the the balance will come from the state and we anticipate that'll be in 27 although it's very likely that that will slide to the right as well. Uh the north deep north ramp rehab uh is the design um that's the one I mentioned earlier that'll kind of set the stage for um private development of hangers. the uh our fairport facility is an enabling project. will take a large amount of soil move. You know, the the the bad part about being in the mountains is there's dirt where you don't want it, right? So, this will be moving dirt and setting up the utilities for the R station. The northeast ramp is uh the project I mentioned earlier.

Excuse me, Patrick. Could you tell us and me and the public what's the our airport facility?

My apologies. There's there's way too many acronyms in aviation. Aircraft rescue and firefighting. So, the aircraft rescue and firefighting building will be a joint facility both for the fire the fire trucks and then the snow removal equipment. Another acronym S sur uh and it'll house our operations folks. You bet. Uh the northeast ramp is the project I spoke of earlier. That's uh where the money from the state came in. So, that'll be design. Um we also have some land acquisition in the mix uh that'll be coming up. Um going back to the earlier question about the fire truck uh 26602 the RF index B truck will be a new uh new vehicle. The uh southwest ramp uh reconstruction fence and erosion control. This is the uh aircraft parking apron nearest the adv building. So it supports uh eagle air. It supports guid aviation guidance aviation uh lenor aircraft. So, it'll be a common ramp and we're um upgrading that ramp and the and the fencing. The wash rack will be adjacent to the new Eagle North uh facility. Uh that'll be a public ramp u I'm sorry, public wash rack for aircraft and uh we'll have a a means of collecting uh the cost of water for people to wash their aircraft. Goes through oil water separators and all the things that are more uh more modern for aircraft washing. Um the improved service road is for vehicles that'll be just inside the fence. So making a circuit around the airport. Uh access control improvements are uh some gates. This will be mostly designed. Then we'll we'll put several uh orphaned gates on the access control system. The uh terminal vestibule and and PBB another acronym pasture boarding bridge uh will be a modification to the terminal uh to put in a a jet bridge is the more common vernacular. Uh so you'll see that we have a active grant request. We should hear any moment any day now

whether we're successful. That that's a um $3.8 million request for a $4 million project. And we think we have a very compelling case uh in that regard. TaxiF we have uh two um well actually the first tranch is going to be uh discretionary FA dollars. We're uh the FA's been very supportive of this project. It takes out a safety area uh concern of theirs. Uh so the first phase will be a vehicle service road, some paving paving and some some drainage. The next phase will kind of tie into that taxiway delta project that I talked about earlier, the widening and the strengthening for the bigger aircraft. And then some preliminary master plan components. We're looking at the terminal area development plan, uh hanger development plan, and uh some long-term visioning. Some uh something the council's asked for. you know, look at what's what's next, you know, how what if what if uh the Perkins Ranch doesn't work? What if it does? You know, we're just, you know, what's our you know, we we've looked very closely at what the next one or two or three years, maybe five years. Uh looking at 20 years and beyond is really important, I think, to align our our efforts today.

Uh do you want to bring up uh the new control tower? Sure. So, uh we've we've made great progress. We've assembled the the the four lots that are required at the site. They will be here next week to start the environmental assessment uh on those. They're starting uh pre-esign. Um on the street out the industry, they're looking at design firms that will do the design. Um so it's moving forward. So I think uh sequence of events the environmental assessment or environmental overview or the NEPA requirements uh design and then we'll very soon we'll begin the discussions with the FA about the business deal how we um how we how we construct that business deal. So it's moving forward. It's that's um moving pretty quickly.

So the funding's in place we think. So they've been very clandestine about that. Uh all indications are it's either in place or within a you know a niche of being in place that you you may recall that the FA um last year had $12.5 billion in in uh air traffic control modernization largely because of the um the the devastating crash in in DC uh that prompted a lot of discussion. Uh so we think that it's kind of tangentially uh connected with that. We uh had just uh they were out there doing some fiber optics work just recently. So it is moving in that direction. Okay. Where the funding comes from they we don't really tell us.

Thank you. Uh let's see. We have uh let's do Patrick and then Lois. So, I know this goes to your next slide a little bit, but since you made the point about um FAA funding for the control tower, what's what's FAA funding? I know that the primary resources are coming from federal grants and I see a lot of federal programs being slashed. Is that not true in your field as well?

Are you speaking to this this slide? Um I would say that the competi the the competition is there uh as it's always been. Uh programmatic slashing has not taken place on the federal level. On the state level last year for example we had a big sweep in the in the ADOT aviation program uh which has a ripple effect. Um but federally not not so much. Um, we had some very good conversations. Again, we had a delegation that went to DC, uh, back in March. Had good, you know, good conversations about a variety of things. Um, so I think we're making our way through that, uh, advocacy pipeline, uh, from environmental assessment to design. And, you know, the big number in in these in this slide is really the runway, you know, so we're kind of preparing for a hundred million dollar, you know, program, right, which will be over several years. Um, so in in airport world, a hund00 million dollar runway is not off the charts. Um, there are examples of billion-dollar runways out there. Um, so it's not not for small airports. So I think we have a compelling case to make, but it's going to just require that. Um, so I'm not I'm not so concerned about the federal funding. I think the state's a little bit more at risk.

Thank you. You bet.

Yes, Lois. Thank you, Mayor. Um question. It really uh hit me when I was doing the pre-work here about uh this ARF airport facility. When you look at a $24.8 million project and and then a 1.4 4 million truck and I do recall being very close because of PSTI about taking the current um facility fire facility up there and and in essence moving it down south to the new facility but I didn't really understand so this was not this project this ARF project was not part of PSTI um and is this going to be something that we on council and the public are going to get more of through this master planning project or did this happen before I joined council? I'm just trying to get in touch with what's going on here.

Well, I think station 73 is pretty outdated regardless of whether it's moves or not. Uh so my understanding is that the station discussion started about the same time as moving uh station 73. So I think there were kind of parallel efforts. the state funded 100% of the design for the RF and SRE facility. So, um they've already they've already invested their money. So, they they're confident. I I'll tell you that the FA um just because of prioritization of projects has, you know, kind of thrown a caution a caution out there, but uh our our request is that we get discretionary funding to build that facility. How that's ultimately funded, we're not not sure. Um, but I think it is very different, very set aside from the other initiative that you're talking about. And I hopefully I've not mixed too many topics there.

Well, no, because for me, um, building a new fire station where the crew is moving from the airport down there is a whole lot cheaper than this ARF airport facility and I just I don't recall us having a study session or anything on this. So, if it would be possible for us to better understand this project and what the timetable is and where's the funding going to come from because um I spent a lot more time understanding a lot cheaper of a station than than this is going to be. So, okay. Thank you.

You bet. And I think part of the complication of this is again we have dirt in the wrong places. So, there's about five million about $5 million of that project is uh site prep. So, removing the dirt, taking utilities, doing the storm water and so forth. So, but I'd be happy to do that, you know, the whenever the council's ready. And I think I I touched on the last project. Let's see. Go back here. Uh hanger development. We um we should be we'll advertise next weekend for that project. So, again, uh this time, oh uh at the end of this calendar year, we'll be uh ramping up to put tenants in that building. Mayor, I think we've touched on this. I know I've taken probably more time than the city manager would like. Um this is the, you know, the kind of scorecard and Lars can jump in here if he wants to embellish. Um to me, you know, this highlights the two areas I've touched on. If you look at the um you know, the the revenues up at the top, you've got the intergovernmental operating grants. Those are the co grants that I spoke of. Um and then you see the you know, the net revenue is really the subsidy, right? So, our goal is to narrow that gap over time without um without impacting our ability to to operate the airport or I skip over anything. You ready to get me off the stage?

No, you you covered it, Rick. Thank you. Um you covered a lot of the topics here that I was going to mention on the slide, Madame Mayor. Yes, I mean the game clock shows that it's halftime. You think we could take a couple minute break? I think that's a good idea. Thank you. All right. Thank you. Let's take about what? 10 minutes. Get Let the blood circulate back into our legs. Okay.

Mr. Gambboji, recess is over. Let's go. Half time. It's not recess. We're not kids. That's why I said recess because we are kids.

All right. Good afternoon, Mayor and Council. Gwen Roage, public works director. So, um, you'll notice that there's not a pie chart on our first slide here. Just briefly, I'd like to go over the various components of public works. Um, we are primarily funded through enterprise funds, the water fund, the wastewater fund, the solid waste fund, as well as the 1% street fund and hurf monies. So, those all of our monies come from the enterprise funds or the 1% tax. Um, and until fleet joined us, we could honestly say we didn't spend general fund money, but we kind of like fleet, so we'll keep them. Um, on an annual basis in FY27, we're looking at about $78 million in operating funds and another 83 million in capital projects within the public works department. We currently have 183 employees. When we prepared the budget, we put together about 22 operating budgets, but finance was really nice and kind of lumped them all down into five strategic areas where we work. So, today you don't have to go through 22 budgets with me. You just have to go through the five. Yay. So, the first one is engineering administrative services. And and before I um Where's the clicker? Sorry, I don't have the clicker. Sorry about that. I thought I was prepared. So, before we get started, um I I have my leadership team here sitting in the front row. Because we're such a large department, we're going to present this budget to you cooperatively as a team. One of the things that I asked my team to do uh because we do spend so much money even in the operating budget was to highlight two or three key components that are happening within the

very the five divisions that I spoke of that might be forward- facing for the public so that council can be aware of some of the big projects that we're working on in case the public asks you. So if you have questions as we go along, please stop us. We're going to start with the engineering and administrative services division, which is actually the backbone of one of the backbones of our department. That's not moving. Is it you? Nicole's my Vanna for the afternoon.

No, there we go. Okay. So in the administrative and uh engineering services division um we have a slight increase total increase in our operating from 2.8 2.85 million to 3 million. One of the biggest changes of that is that we move the healthy lakes funds from capital into the operating budget as well as um as well as uh micro trenching temporary personnel. So, as most of you know, we came into the community recently. And as part of that, they are micro trenching on some of our streets. So, we we hired some temporary inspectors to make sure that we have full-time inspection. That's been working out very well so that we can answer their questions right there on the spot and we know where they're uh where they're digging in our streets and that they're putting it back properly. So, that small increase in engineering and admin is primarily due to those two things. And now I'm going to ask Randy Pam to come up to the podium, the city engineer, and he's going to talk to you a little bit about the Yavapai County Flood Control District funding that we receive and what we do with it.

Thank you, uh, Mayor Mayor Council. Uh, as Gwen said, I'm your city engineer. Uh, one of the groups I oversee is our design services team. It's a small team. Two senior engineering techs, a drainage engineer and myself. We provide design and technical support to uh a number of the groups within our own department. We provide preliminary engineering for other departments and we work handinhand with community development and the permitting team there. So another primary function of that group is overseeing our flood planes. We do flood plane management and we manage our drainage budget and uh we work with the Yavapai County Flood Control District. Um, every year you receive approximately $890,000 in funding through our IG and uh it sounds like a lot of money, but for the number of drainage complaints we get annually, um the flood plan issues we're trying to address and uh a number of other special projects we're trying to do. Um it is a very lean budget. Uh we're always trying to supplement that budget through grants. Um sometimes we we get those grants, sometimes we don't. Um, but the guaranteed funding is that 890 that I just mentioned. Uh, we try to use that as efficiently as possible. One of the ways we do that is partnering with our streets department. We have a very robust uh streets program um that's doing rehab and rehabilitation all over the city. So, whenever they come in and do a new road um if it's an area where we've already earmarked a number of drainage complaints or known drainage issues, we'll piggy back off that contract and we'll do some drainage improvements at the same time. So, there's cost savings there. We already have a contractor mobilized on site. Um, and then it just makes a better overall project because now that roadway is going to be um um kind of protected from some of the drainage issues that can can erode a roadway. Um so, yeah, that's uh kind of an overview of what we try to do. Um we're

always trying to advance projects and reduce flood risks for our citizens. Um, some years we do a kind of a lot of small projects kind of peppered all over the city. In the next fiscal cycle, you're going to see just a couple bigger projects. I'll just mention two of them now. Um, in Yavapai Hills where there's a lot of drainage issues. We're kicking off the Hornet Drive uh drainage improvement project and we're actually going to be receiving bids for that project in the next few weeks here. So, we'll know if that uh $780,000 budgeted item is where we want it to be. I'm anticipating it'll probably be a little bit less than that. Another project that we're kicking off is for the Dexter neighborhood um around the area of Lincoln and Merit. As some of you are are well aware, uh we've had structures flooded in that area on um some of the larger monsoon storms we've had in the last few years. So, we're really excited to wrap up our design and um and looking to get that constructed in the next fiscal year as well. So, I'll take any questions you have now. Um, anybody have any comments? Uh, I have noticed that we've had some several several large expenditures focused on Yavapai Hills. I guess because they're on the very steep area in there and it's a large subdivision and I think the more they built, the more they disturbed the area and caused problems. So, we're trying to patch that.

Yeah, exactly. A lot of steep grades. Um we'll talk a little bit more about the Hornet project later in the presentation, but um there was different design standards at that time. Um so some of the conveyance in that neighborhood is undersized. We're trying to address those issues and this is one of the projects that's going to do that.

Jay, you were ahead of me. Okay, go ahead. I'm very glad you'll be addressing the Dexter neighborhood. I was just wondering about the discrepancy between 200,000 and 780 for each of these neighborhoods. So the Dexter that the 200k you see there is actually design dollars and that's actually spanning two fiscal cycles. So that the full 200 won't be in the FY27 budget. Part of it being paid this year and and the 780 is also design or that's implementation.

That is the engineer's estimate for the construction. Yeah, we've been working on the Dexter area for I don't know 20 years or something. It's been going on for a long time. Uh Patrick.

Yeah, thank you, Mayor. I wanted to hear a little more about that, too. Um I remember going to some gathering of folks maybe including some neighborhood folks. I think a couple people from the city uh prescuit college staff was uh and students were looking at that particular project. The history is like we've already put uh a significant amount of money it seems like into improvements there that don't appear to have worked. Now we're going to spend another million and a half. And I'm wondering, do we have some new design ideas that look like it might solve the problem this time?

Yeah. And I don't have the comprehensive history in my back pocket, but I do know that uh we spent a large amount um doing an area study. So, Lion Engineering with the Wilson um engineering did a large master study for the entire neighborhood and they identified nine main projects in that study. And so we're now just because we have limited funding for drainage, we're just now starting to fund those specific improvement plans because what they have provided in those reports are just like kind of 15% concept level design. So now we're moving into 100% design plans and then after that we're going to be funding construction. So we wanted a project that was going to have an immediate impact on the neighborhood. And so that's why this project was selected is that getting those citizens um just results right away because some of some of the projects were um I would call a maintenance lover like cleaning out the creeks and and that would have some kind of an improvement for the neighborhood little less expensive but this is a project that's going to the neighborhood's going to immediately feel the results of this project. Mhm.

I was going to ask you on the uh the Lincoln Avenue area, are are you going to be removing a lot of trees because I know people were upset when a bunch of the riparian area trees were removed along that low water crossing there at Lincoln.

Um I'd have to go back and look at the design plans. Right now, they're at about a 30% level. Um I don't think there's going to be a lot of veg veg removal. Um most of the the work that we're going to be doing is going to be from curb to curb and so you're going to see a different section uh with some storm drain improvements. So a lot of the mature uh trees that are lining the sidewalk area, we're not going to touch those. There might be some tree removal down near the creek where we have to tie in our outfall. Okay. All right. Thank you. Any other comments? Okay. Continue. All right. Thank you.

All right. Thank you, Randy. So, next up, we're going to have Matt Colleen, our environmental program manager, come up and talk about our healthy lakes program and our green storm water infrastructure program.

Good afternoon, mayor and council. As Gwen mentioned, Matt Colleen, and um I think the next two slides truly embody the um mission statement of the strategic plan in terms of stewarding our built natural environments. And further that's kind of reiterated in priority four in in how we work in preserving and protecting the natural environment and creating community livability. So, the Healthy Lakes program um um came across this uh factoid, if you will, that water-based recreation has creates greater economic output than either the Gulf or wine industries. And statewide, it also creates more jobs than mining. So, this one of the wise that we're doing this work. Um the healthy lakes program is out there on a monthly basis monitoring, maintaining and treating our lakes. Um and and this coming year we're looking at projects at Watson Lake phosphorus binding and that muck in the shallow kind of backwater area. Start digesting that so it doesn't continuously release kind of the negative pollutants into the water column. Uh at Upper Goldwater Lake will also be continuing those muck treatments which have provided great results to date. Um one other project that's kind of a hidden gem is our Groom Creek diversion. So we actually have a diversion dam in Groom Creek that sends water all the way over to Upper Goldwater Lake. And I checked on it yesterday afternoon and it's still flowing. uh but it's a dated it's an aged and kind of falling apart structure. So we're going to go in and do some modifications to reduce some of the ponding that's uh lo happening in that area so that the neighbors aren't having to deal with mosquitoes as much. And then we're also going to be

improving that diversion so we can quantify exactly how much water we are uh collecting out of that water right and delivering to upper Goldwater Lake. Um, one of the things that Gwen previously mentioned on the slides that the increase was associated with the Healthy Lakes program is we've come to realize that if we can self-perform rather than hiring one of two contractors out of the Phoenix area, we can have a significant savings. And so we calculated out based on work we've done at Goldwater versus that which was done by consultants in Watson and found that if we did one full lake treatment at each of our lakes, we'd save over $263,000 per year. And so that's something I'm fortunate to have a good staff and they're making that possible. Um with that we can take any questions specific to the lakes or move on to the gsi.

Mayor uh Mary Sorry, I didn't mean to jump in front of you. Um, Matt, uh, the selfp performing treatments, is that with our current staff or are we going to have to staff up?

That's with existing staff. Uh, Jeremy Cordova is pictured in that top right picture there and that's one of the treatments foster responding that we took uh to Goldwater Lake. Um so my guys have helped um when the contractors are here have learned from that process and um we purchased that John Bo Johnboat in this last fiscal year. Uh that single treatment of Goldwater Lake more than covered the cost of the boat the motor and all the equipment necessary to conduct the treatment. So realizing that that kind of possibility existed, I'm unleashing them to get creative and do these on a much more nimble basis.

I appreciate that. That's great.

Uh the other program we're going to be talking about here is the green stormwater infrastructure program. Um and this is uh storm waters have kind of become a bit of a buzzword uh kind of regionally recently and I think there's for it's justified. It really is an untapped resource that's kind of been considered a nuisance historically and this this program really seeks to identify it as a resource and a benefit to the community. Um and so one of the ways it does it is it provides a cleaner way to get water more directly to our creeks and down to the aquafers Watson and Willow. so that can be ultimately recharged after we enjoy it for a while. Um, and so we currently have projects for design uh on a Monizuma rightway. We're looking at doing one on the Peine to create a buffer between the city facilities and the Peine Trail. Uh it's a kind of a weedy area right now. We have runoff from a number of facilities. So we can use a number of different plants uh you know all kind of drought tolerant regionally appropriate pollinators. It'll benefit um and provide that phyto remediation of the runoff water make it a better user experience as well. Um 10 days from now you have a chance to come out to our second Strickland Park public meeting. First one went great. We appreciate those who could attend. Uh and it was wellreceived from the community as well. And that's the one of these u more of a pass through structure. So we're getting water off the street and sooner um having local benefit to the repairarian forest. Um we'll have some flowering species in there as well. It's going to reduce the wear on the road, the black ice in the area. Uh so we're looking forward to get that one moving here. Um, and one of the things we've also come to realize is that we can work in these places, whether it's the lake or in Strickland Park in this uh pictured example, but if we don't look at the

wershed that's kind of feeding it above, we're going to be bound to repeat our work time and time again. So, in places like Goldwater Lake, we're looking at the drainages and the tributaries that lean into it. We're working with volunteers historically to create check dams and other things that really slow that water down, sink it in so that it can benefit the local vegetation, but also get to the lakes in a cleaner uh fashion. And with that, I'd be happy to take any questions you all may have.

Uh yes. Um Matt, could you um go back to the um Groom Creek diversion structure improvements? Sure. You have some details on that. Uh what are we doing out in Groom Creek?

So, it's going to be in two phases. The first phase is mostly an earthwork um phase where um previous maintenance activities had created kind of a stagnant pool on kind of a side of the feature and residents complained about that creating kind of a nuisance mosquito breeding habitat. So we're shrinking the size of that by bringing in earth and that'll allow the water to divert more cleanly and directly into the diversion structure. We'll also be doing some basic uh dam resurfacing uh just to help maintain its integrity so that we don't see as much seepage through the dam. Um we'll also do some site safety um steps. Currently there are wooden slats above one of the kind of concrete channel. Um and with the amount of you know wildlife and and I'm sure kids love to go down and mess around with it. We want to make sure it's not something somebody's going to put a foot through and injure themselves and it'll also keep that water cleaner.

Okay. Thank you. Any comments? We have Mary Frederickson. Yes, Matt. Um, speaking again about the Groom Creek diversion um work that you're hoping to get done. That's on county land. Is there any interaction between us and the county as far as the work being done there? Uh it none none to date because it's not really required quite frankly. It's private property and so it's ours and we have the historic water right associated with it and so this is really a maintenance function is we're not rebuilding or making significant alterations to the structure that's already there. So it's very much just a a a focused maintenance activity.

Thank you. And as far as the um the swale and buffer between the peine and I'm assuming that's up the hill, the the fire training center and the waste uh transfer station. That vegetation is that going to be vegetation as well as a swale?

Yeah, absolutely. Um we find that these vegetated swailes perform at a higher level than just earth and um ditch would. Um, and so there are a number of species that are specifically good about taking the pollutants of concern. In this case, there's nutrients, which are plant food. Um, but willows are particularly good. And then other kind of flowering shrubs. There used to be some really nice stands of milkweed through the area. So you could have essentially a butterfly garden through that area, which would be much preferred over the current weed infestation that we have.

That sounds great. Um, but I'm assuming that the plantation or the plantation, the vegetation along that will be um native or at least native compatible vegetation, something that won't require ongoing maintenance or watering.

No, we right. The idea is to put the right plant in the right place. And the right plant starts out with something that's going to be regionally appropriate. It's not going to be a high water consumption type plant. Um, and we're going to take into account, you know, when you do something like this, you want to have flowering plants through the entirety of the season, not just at the front end and back end, but kind of a a full spectrum to cover the seasons so that those pollinators can rely on that site uh for the entire year.

And is this something that we are in the process of or is are these just ideas that you're thinking of it for the future? Uh so these are things that we would tackle in the upcoming fiscal year that you're considering here today. Um and so we've had initial conversations with uh GEM environmental corps to help provide some of that um work on the ground, boots on the ground. Um and so from a cost perspective, they're one of the most efficient folks we can find for this kind of work. That's great. Thank you, Patrick.

Yeah, Matt. Thank you. Um, I think these initiatives are really great for our community and I applaud the department for, you know, focusing on the lakes and uh, and the infrastructure for green storm water. Yeah, just it's good work and it's something that I think it's really helpful to meet that goal of protecting our natural environment. So, thanks. Thank you. Mr. Ruby.

Yes. In the eventuality of an implementation of a storm water catchment policy, would there have been any type of administrative load on your department and is that accounted for in the budget? So we already do um review and make sure that uh commercial development subdivisions have storm water requirements that they have to meet. So that is already part of our workload. Um and so we're at over 400 plan reviews for the you know to year to date already. Um and so that's just a continuing thing that we would continue to do and depending on you know what future code or other requirements general engineering standard requirements come come about um we would just march in step with it so that we could realize the benefits.

Thank you. Okay. Mary, do you have another comment? Yes. Just on the Strickland Park. I know we had the neighborhood meeting. I'm not sure if the second one has happened yet or not, but are we still in the gathering ideas or do we know what's going to um the department is going to do in that area?

We're not at 100% design plans yet, but we're close. And so we want to make sure that if the residents, neighbors, um concerned citizens have specific concerns or questions that we can address them and that our design adequately addresses those issues if they're valid and applicable. Um and that next meeting's 10 days from today and Jeremy and I will be out putting door hangers on Thursday morning. So thank you. And um and again, assuming everything moves forward, uh is something we're considering to get done in the next fiscal year.

Ideally, that would go under construction in July. Strickland Park, we'd like to have it in place when the rains come so we can actually see how it works. Yeah. Thank you.

I love I love Matt's optimism that we're going to get a lot of rain. I'm really I'm on his team by the way, but I I love his optimism. So, next up is our finance and business operations manager, Carrie Overheim, and she's going to talk to you about an initiative that we're going to take on this year called accreditation in public works.

Good afternoon, mayor and council. Uh public works has begun working towards our accreditation, and we're lucky to have a recent retiree on board to champion this exciting project. Accreditation through the American Public Works Association is basically a national seal of approval. Excuse me. It shows our department is meeting top standards for safety, efficiency, and service. It helps keep us accountable, reduces long-term risks, and makes us more competitive when going after grants or funding. At the end of the day, it's an investment in better infrastructure, stronger public trust, and supporting smart, sustainable growth in our community. So, we anticipate the timeline to be about this time next year when the accredititation board will come here and and interview us. So, hopefully we'll have good news for you in about a year. All right. Thank you, Carrie. Any questions for Carrie? Awesome. So, the engineering administration um division has 16.90 uh people in it. It's up um I'm sorry, it's down slightly because we had a couple folks um move to the community development department. All right, so the next division is fleet management. And as I said earlier, we were um glad to bring fleet management into public works this year. They've been a great addition to our team. Um overall, their budget is pretty much the same as it as it was last year. They do have a little bit of an increase for their parts inventory. Um Carrie's Carrie's going to talk a little bit in a few minutes about how our fleet numbers have changed over time. Um and also for generator maintenance because we added a great big generator right outside this building. So we added another one to the list of things to be maintained. So that's really what accounts for a little bit of an increase in their overall operating expenditures here. Are there

any questions about their operating costs? Lois, thank you. The only question I had was the um slight increase in the internal charges, and I figured that was related to generator maintenance, but I figured I'd ask. So, so the fleet management is an internal recovery. They work as an internal recovery fund. So, everything they do, they charge to whatever department they're working for. So, I believe this is Lars maybe can answer this, but it's a reflection of the the number of hours and the um added vehicles to the fleet as well.

Yeah, those internal charges are actually other internal charges within the city such as the accounting charges, administrative charges, legal services, um facilities. Correct. Yep.

There you go. All right. Carrie is back. So, a quick overview of base budget increases. Uh, what we're seeing here is really just tied to a growing fleet. As we add vehicles, our parts and inventory costs naturally go up and as repairs and replacements vary from month to month. We need to account for that. Uh, we're also spending more money on gas, oil, and shop supplies to keep everything moving smoothly. And our fleet management software program costs have increased over the years. Uh, these are the programs that help us stay efficient and organized. Additionally, maintenance for machinery and equipment, including those generators and our generator contract, is higher as our overall service needs expand. These increases reflect keeping up with demand and maintaining reliable operations.

So, there are currently 11 full-time employees. Just minute, Patrick. Oh, I'm sorry.

That's okay. Thank you, Mayor. um in this area. Carrie, I know this is coming way too late for the budget process, but um a a group that actually a previous city council had supported was the Prescuit Sustainability Working Group. And one of the areas that um they had been looking at was the purchase of electric vehicles, charging stations for example in the downtown. And um actually city council just had a paper that was all distributed to the public works director um today that put out I think some great information on terms of how this is speaking to our economic competitiveness number one but also to cost savings and that we have other best practice examples um like Sedona and Flagstaff who are our competitor comptor cities. Um, and so I'm wondering if uh what steps the department might be able to take to looking at how those options might benefit us in the long term. I remember that for I think it was for fuel consumption there was a 66% um reduction in in costs to both communities. And then with respect to EV vehicles, obviously it doesn't work for firet trucks. Um, but for EV vehicles that there's also a a cost savings with maintenance as well. And I'm wondering if you have any plans for the next budget year of maybe taking a closer look at this.

So that is definitely a big picture element and that would include facilities to have discussions about the infrastructure needed to support an AV fleet. Um, we actually have piloted an EV test on one of our patrol vehicles. Actually, we haven't purchased it, but uh, we did do a twoe demo on it. And we are considering purchasing an EV patrol vehicle for FY27. We also have to look at the rest of logistics and make sure that we can charge and and how that all works, but it is in our plan. Okay. So, we are looking at it. We also um over the last couple of years have added some um hybrid vehicles. Sorry. Yeah,

we we've added a couple of hybrid vehicles to our fleet. So, when it's appropriate, we are looking into those options. Okay. Thank you.

I um I support that also. Um getting more of our uh EV charging stations just for the tourists to use so we don't get bypassed by them. But we also need to start utilizing them in our own our own fleet, hybrids or EVs. All right. So, so our fleet division has had 11 authorized positions since two um FY23. So, a manager, supervisor, coordinator, a parts team, and six total mechanics. Uh once the FY27 purchases are complete, we will actually have a vehicle to mechanic ratio of 77 to1. That is getting on the high side for municipalities with a mixed fleet such as ours. It's typically between 55 and 75 to1. So in FY28, I might be back to ask for another personnel.

You heard it here. And then in FY27, the division division will be responsible for purchasing uh 51 replacement vehicles and 19 new vehicles. So our fleet is expanding once again. Mayor, yes, Mary, just to follow up on that, the replacement vehicles 51, it's essentially 10% of the current fleet. Is that every year you're thinking 10% replacement or are there specific 51 specific vehicles that need to be replaced?

So, we do um try to keep our fleet age down. Currently, it's about 10.25 years for our fleet age for each vehicle. Um 51 has been the average for the last three years. So, we're just catching up from a time when we weren't replacing vehicles as as often. Okay. But I guess my question was is that it may just be a coincidence that it happens to be 10%. So I didn't know if it was on a schedule like every year we're going to replace the oldest 10% of our vehicles or No, we don't have a timeline such as that. We have it based on the age that we purchased the vehicle last. Thank you.

Thank you. Any more questions? Okay. Thank you. All right. Thank you, Carrie. So, we're going to move on to utilities operations. So, utilities operation is an enterprise fund. We have water the water fund and the wastewater fund. In addition to that, we do collect impact fees for both water and wastewater capital projects. Uh first, we're going to go through the operations. Uh Steve Ulers is going to come up and talk a little bit, but first I'm going to go through the um the operating expenditures. So you can see um this is the water. I believe this is the water. It's water.

I'm sorry. It's water and wastewater. Um so we're going from about 32.5 million to $34.5 million. Um increase of about $2 million. Some of those increases are attributed to the sa the south tank repair project which is leaking into the pen eastwood basin. I'm sure you've heard why is there so much water in the pen eastwood basin. Well, that's as a result of a leak that we have in the south tank. So, we did a design project this year and we'll be repairing that but because it's maintenance it falls under the operating budget and not a capital expenditure. Now, is that the tank kind of out there by Acer Park and the the old drivein? It's kind of half buried.

Yes, I believe it is. Right, Steve? Yes, that's the one the only one down there.

Yeah. Um, in addition to that, some of the other increases have to do with materials such as valves and mixers, disc filters, generator cells, and gear boxes. Th this is equipment and materials that we have to buy to maintain our basic infrastructure that's already online. That's about a half a million dollars in increases this year. Uh we also have uh some small increases in our overtime budgets for both water and wastewater. Unfortunately, we had another leak last week and another one on Sunday from a PVC pipe um leaking. So, that's an ongoing issue for us that we're um addressing, but our staff is unfortunately working overtime to do that. Um, also on the water side, this year we have to change out the media at our airport uh well number three. So, when we treat for arsenic, there's a media um product that goes into the facility to for the water to wash over and remove the arsenic. And every 2 or 3 years, we have to replace that. So that's about $250,000 increase this year to replace the media. And then we have other small increases like hauling fees, electric bills, water bills, permits for ADQ and tipping fees at the landfill. So some of those things have gone up simply from inflation. Um which is resulting in about $2 million increase for water and wastewater fund budgets. Do you have any qu other questions about this chart? Nope. Mr. Garing, do you have any questions? I guess not. Okay.

Um, good afternoon, mayor and council. I'm going to highlight a couple of projects that we're working on. These are uh new ones for this year. So the first that says that water providers must go and look at all of the services that are attached to homes that come off of their water systems to ensure that there is no lead in those lines. So we started with a phase one. This is phase two. Phase one got us down from our 28,000 plus connections to down to 15,000 that we still are out there that need to be surveyed. This next phase starting this year uh probably will last for the next 5 years to get and check out all of the different services that are out there. So, the first year uh as I said this year, we'll uh we'll get about 3,000 services checked and continue those until such a time as we meet the requirements of this of this new uh regulation. So, that that's one of our our big ones. We'll be starting in July. We'll be sending out uh information to the different to all the different folks we're targeting this year and we will be out trying to come in compliance with this with

Madame Mayor. Yes, Ted. Steve, you're looking for lead in water. I'm looking for lead lines. Lead? Oh, lead lead lines. So, lines that are made pipes that are made of lead. That is correct. How far back does that go? Well, we have found zero in our first round, but we we're required to go out and check everything. So, you'd have you'd have to go to London or something to find lead lines. But you also it also says copper. Is there something concerned about copper?

Well, lead lead and galvanized kind of go hand in hand. Uh so the the galvanized tends to c capture copper and lead and that can also be released. This comes out of the Flint, Michigan type situation where they had a corrosion ch corrosion control change and it sucked all the lead and the copper out of all the pipelines. So that's what this is coming from.

Thank you. Amazing. Our second one is, as Gwen has talked about, was a South Tank repair. Um, we've been working on this for almost a year now. Uh, it turns out it's quite a uh undertaking trying to find a leak in a 30-foot deep hole. Um, you have to we have to go under the tank to find the leaks. So, uh, this, uh, this is going to be quite a spectacular construction project when we get to it in October. The reason why we're saying October is because we can't take it offline until the uh, until the demands drop. This is the main tank in the s southern part of the city and and uh, so we have to wait until our demands drop to be able to take this tank down.

Wait till fire season's over, please. October at least. October 26. All right, Jim.

So, uh, Steve, the last time I had my crew looking for a leak in a concrete tank, we sprayed the diver down with chlorine and sent them in to look for the leak with a leak detecting uh solution that would go through into the hole. Is that not available? Our our our challenge is that the leaks are in the drain lines that are underneath. So the the largest line is a 24 in and the smallest line is an 8 in. We haven't found any volunteers yet to go into those. Not in that size line.

No. So we've done some robotic surveys and we're actually going to do a CIP type lining in those in those lines. And the last Go ahead. Sorry. CIP. Sorry. Um, cast in place. Help me. Cured in paste place pipe. Cured in place in place pipe. So, we take a pipeline and we put it in backwards and heat it with steam and it sticks to the inside of the pipe. So, it keeps water from coming in or going out. So, it essentially makes another pipe within the uh the other pipe.

Okay. Got it.

Moving on to the third project that we have in this is in water production, our POS study. This is uh we're in the middle of our a two-phase project. Our first phase is almost complete. Our second phase will be coming uh to council in fall of this year. And the the point of this was to help us determine what kind of treatment systems we want to use and what uh where we want to put them. So, we were very fortunate. The state of Arizona approached us and offered money to pay for phase two. And so, that's what we're waiting for is our phase two to complete. And again, that will be coming to us and it'll be here to review in late this late this year. And uh we'll be ready to start going into design and and further construction with these different systems as we move through the next couple years. Moving on the water distribution.

I'm sorry, Mary. Just before we get off this, sorry, just before we get off this slide, stepping back to the lead and copper program. Is that an unfunded mandate from the EPA or are they providing funding for all this work? The funds were were to come out of the infrastructure project during the Biden administration, the $1 billion and and well, we didn't get any nice. Okay. And is there some time requirement from the EPA to get this work done by 2031? And are we projected to hit that?

Yes, ma'am. Sad about the money, but good to hear. Thank you. Uh Jim, so uh the last I recall we authorized a contract to fix Chino Well 5. Is that back together yet? Yes, sir. It is. Okay. Thank you. Mhm.

Um I also have a question on the uh 5year CIP. Uh you have uh drilling a new well because we have airport number five uh shut down. uh and it's probably not till 5 years. Don't you think we should move that up in view of the drought and our growth that maybe we should look at uh drilling that well a little sooner if we need to. That's something that we depend on our on our engineering team to to come up with that. But at this point, if I recall, it's a placeholder. Correct.

Yeah, I think I can answer that. So, mayor, um, council, the water and wastewater master plan calls for a future sixth well and I I believe even a seventh well at at some point. Um, that well was scheduled to come online sooner, but because of the Hila adjudication, we're pausing on drilling new wells. I can also tell you that even with well five offline, we didn't have to bring it on in the last two years that it's been off. So, um, we have enough pumping within our existing well fields. We have two well fields, one at the airport, one in Chino. We have enough water coming into the system to feed our our daily demands. And we have not had to turn well 5 back on. It is and it will be the largest producing well that we have in both well fields. when we do turn it back on. So, the likelihood that we would need a well number six right now is um not highly likely and until they settle the terms of the hill adjudication with the subflow zone questions going on, it's a better idea to delay implementing another well in case we might have to move it. So, we're we're kind of biting our time and waiting to see what those determinations are. I'll let Joe speak to that a little bit more.

Yeah, because uh you know, our water use does increase over the summer, but it does. It does depend on the monsoons and I think this year they're predicting a a good monsoon for us. Although last year they predicted a good monsoon, but it came late. So, one of the things we do really well in this community is water conservation.

I can tell you that we pump very close to the same amount of water today that we did 20 years ago. And our population has increased by more than 12 to 15,000 people. And we're pumping the same amount of water today as we were 20 years ago. And that is largely due to water conservation. And one of the biggest thing that um compels people to conserve is a water bill. Okay. I'm glad you're keeping an eye on it. Oh, I'm my eyes on it. Okay. Great. Yeah. Thank you. Mhm.

Moving on to our water distribution programs. Water distribution is the pipel or the pipelines that are in the ground. Uh one of the challenges with working with an older infrastructure is that the codes have changed as to where valves and how many valves need to be within the system. Currently we have systems that are areas of the of town that are controlled by a single valve. If we close that valve, they go out of water. So, for instance, we did a capital project a couple years ago up in the Idle Wild neighborhood area when the original concept came up. There was going to have to be 240 people out of water by inserting one of these valves, putting a valve within the line while it's still running. We reduced it down to one house being out. And so, we're going to we have we've asking for money to go out and put these in strategic areas. This year, we're going to start with five. This is the first year of our program. So, we're going to go out and install five of these valves to check make sure that they they work as we wish and how how we hope they do. Hopefully to expand this project as or this program as we go uh through the next couple years.

Kathy Lois, yeah, just a question. In this insert a valve program in a few slides or pages you had this you know uh maps that said new PRV site is that a PRV is a pressure reducing valve. Ah not the same as this is this is a this is a flow control valve. So this actually stops the flow.

The second project within our uh distribution is to join the citywide weed abatement program. Uh this is a program where we hire a vendor to go out and make sure that all of our weeds and and other detrris are taken care of at our remote sites. Of course, utilities has a large number of sites that we have been dealing with inhouse and we're asking to take them out and give them to a vendor so that they're done in compliance with the the fire risk and firewise and and and whatnot. So this is a a new program for us this year. Okay. If there if there aren't any questions, there are 71.93 employees within uh water and wastewater combined. We do have a um pretty robust capital um plan for water and wastewater. I've got um I've got one of these slides for water and then another one for wastewater. The ones that are bolded there, we're going to specifically call out and talk about with you, but if there's another one on the list that you would like to talk about, got Nicole here. She can bring it up on the screen with no problem. So, Tim Sherwood, our capital program manager, is going to present this part of the presentation with me. Um, on the water production and distribution side, we have what's called a citywide water man replacement program where we go in and replace smaller sized manes as small as 2 in sometimes or 4 in in order to achieve current uh international fire code fire flows. We need at least an 8 in main in most areas. Um, so we go in every year and we replace water manes. So Tim's going to talk about that and we're also going to talk about some developer obligations that we have in the Deepwell area. Um

there's two of them, one on Pioneer Parkway and one at Deepwell um to connect at Pioneer Parkway.

Good afternoon, Mayor and Council. Tim Sherwood, capital program manager. Uh so the first thing I want to go over is going to be our water main replacement program. And uh Mayor Pro Tim, I heard you allude to the PRV on this map. So, I'll go kind of start from left to right. So, this project is going to allow uh the water man you see on Parker Drive will connect from Skyline Drive down to uh Circle P and uh Parker. Currently, the water man comes up uh Circle P and dead ends right there or actually I take it but goes down it goes keeps going down Circle P, but up Parker Drive there's currently no water man. um the meters that serve those houses in there is the meters are at the end of that line and then they have extremely yard long yard lines that get back to their homes. Um so this will provide well we'll install a new fire hydrant up there. So this will help improve uh uh fire flows and provide redundancy in the system. The other area you're looking at where it says install new water man is on Idle Wild Road. There's currently no city water main in that section right there. So we're going to install a new main there. The only loop we have in the system is pine drive that kind of goes around and above it down to where it says replace the PRV site. That's currently a 4-in uh asbestous concrete pipe or what we call an ACP pipe. Um so that'll provide uh better redundancy, better flows throughout the system. The new PRV that you see that replacement there that again will improve redundancy and connect zone uh pressure zone 27 and pressure zone 28. And then the other PRV you see in the upper right hand corner. It'll be a new PRV station. Again, um providing for redundancy and improved fire flows in this area and we'll connect pressure zones 28 and 48. So the whole project overall will help improve uh redundancy in the system, improve fire flows in an area of town that uh could definitely use it. So that's phase one of our water man replacement. Phase two, uh the first

portion will be at Country Club Circle, which is right off of Thumbute Road, a little bit south of uh where the bowling alley is at. Um currently it's at age size and condition update. Um currently it's a 6-in ACP line. Uh we've been installing a new 8 in line, uh a new 8 in ductal line. Um it'll help address some operational issues in that area as well. Then the other area that's highlighted is a Willow and Ash and Brush Street. Uh currently again another age, size, and condition uh project. Currently there's a mix of 6-in ACP lines and 2-in galvanized lines. Um we'll also on west on uh Willow Street will connect to Western. Um it currently does not do that, so that'll help with connectivity and flow in the area. um these these areas also were identified um as part of the pavement management program. So again, when we talk about looking at projects holistically, we had projects that came up um in regards to needing new pavement or pavement treatments. We look at the utilities and so we're going to put new water lines in before we fix the asphalt. Um these projects will be done uh together though. The the pave uh road replacement will be done in conjunction with the water water man replacement. And these projects are scheduled to go out to bid this summer, too.

Both phase one and phase two. And uh are you replacing old PVC pipes or cast iron pipes or what kind of pipes are you replacing in some of these areas? Uh the especially this area here that that like I said, there's a willow, ash, and brush has a mixture of 6-in steel lines and 2-in galvanized lines. So, those will be replaced. There's no PVC in these areas. This the this uh 6-in line on Country Club Circle is a asbestous concrete pipe. It's an ACP pipe. Um there's been a series of failures up there that need to get fixed at the road needs to be fixed. So um we will tackle both of those. Okay. Okay. Thank you. Uh Patrick.

Yes. Does the water meter replacement program is that more system or is that the smart water meters too? So, the water meter replacement programs that is systemwide. It's a replacement systemwide. We're about 50% through that 5-year process now. Okay. Yeah.

The next phase of our citywide water main replacement, phase three, is currently in design. Um, again, it addresses some age uh size and condition upgrades. the uh very lower part of the picture there you see Vista Circle uh LMA and Crest Drive. Um it's between Country Club and um Coronado. Again, an area that the roads are failing miserably up there and so we started addressing the utilities. It was time to uh to fix the water manes. So again, it's a ageiz condition upgrades. Um currently there's 2in galvanized in that location and we're upgrading to a new 4in and 6 in uh ductal iron pipe in that area. The other area on the right hand, lower right hand uh side is Canyon View Street. Um again, it's currently only a 2-in galvanized line. We'll be upgrading that to a new 6-in uh DIP line, and that'll also provide connectivity to Robinson Drive and Butterfield where currently it comes up Canyon View and stops short of Robinson Drive. And then the last one at the very top of the screen is La Paloma Lane. Again, another road with only 2-in galvanized lines in it. We'll be replacing that um with a new 6-in DIP line. And then the last one I have for you today is phase 4, which is the Hokaggon area out Williamson Valley Road. Uh it's an unincorporated area of Kapai County. Um again, age and condition upgrades. Uh currently there's uh a lot of 6-in asbes as concrete pipe mains out there. Um there's been a history of water man failures out in this location. Um it's a maintenance uh problem for our water operations. Uh there's some extremely high pressures, especially as you start getting to the um south side of Hokagon. Um and this project's also being done in conjunction working with the county. The county has uh a lot of road improvement repairs they want to do out in this neighborhood. And so we become kind of a

third party utility in this in this instance because we're not fixing the roads, but the county plans on it. So again, we want to replace our water manes uh before they fix their roads. This will probably be done in multiple phases. Um we're very early in uh uh the process of communicating with the county at this point. So uh we'll see how this project goes. It's not currently in design, but it's it's going to be coming up soon. And uh they have water, but no sewer out there, right? That is correct. Septic unseured area.

It's kind of the common thing to do back then is run city water lines out there and uh everyone just puts in their own uh septic tank. Correct. And the last one I have for you is uh what we call exhibit H. Um that's how it was in the original development agreement. Um this will tie in a new 16-inch water man um on the south side of P Pioneer Parkway in uh zone 110 and connect up to Genna Lane. The original development agreement um more or less straight across from where it intersects from Gentle Lane. we were going to tie into the uh 12-in steel line, but that line was installed in 1948. So, um from operational perspective and like I said, trying to keep our infrastructure as uh up to date and new as possible, we will be uh boring underneath Pioneer Parkway and then taking the line up to Gentle Lane um meeting our our DA obligation um and not having to tie into that uh very old steel line. Um that line actually runs all the way from Chino to zone zero. Um but that line will be slowly phased out over the coming years as we as we do more and more infrastructure projects.

Yeah. And and I just would like to make a comment um for the public to be aware of uh this water and wastewater infrastructure projects for um Deepwell Ranch. I looked at the 5-year capital improvement plan and um if you total up all the projects in the next 5 years which are all going to be funded by debt uh it's 7.1 5175 million 14.25 25 million, 21.5 million, and then we have the $500,000 one. And then you add this $650,000 one, and that adds up to a total of 44 uh6 uh million just for the taxpayers to provide infrastructure to this uh private project. And then also because of the airport wasn't protected on the annexation, you can add in another $12.7 $12.7 million that the taxpayers are going to have to pony up for land acquisition. So, it brings a total of $57.7 million for this one uh subdivision that is uh having their infrastructure

funded by the uh public purse. And um it uh is something that uh we need to take note of that these are all this was all in developmental agree development agreements. All these expenditures they could have been negotiated in a much more better way but we didn't. So, here we are uh pwning up almost $60 million for this uh private development.

Okay.

So, throughout the public works presentation, I I have a few fund summaries. The first one we'll go over is the water fund. What you're seeing here is looking under the hood of the the hard work staff does. So when we're preparing and balancing our budgets, especially in the in the public work side, we forecast five years of revenue and operations so that we can project with our capital projects to balance that program. and and then public works staff goes back and looks at okay we might need to shift projects here or there to make them work out financially. So on the slide you'll see the water fund we projected the water sales based on the rate study we have a few years left of that rate study um they go which goes through fiscal year 29 and after that we're assuming a 2% increase per year. You remember the rates that were adopted. We had in the water fund pretty large increases in the first two years. We had a 13% for the first, 11% for the second year, and then after that, so the next increase is projected to be a 2% rate increase January 1st. Um there's less debt issuances in the water fund. When you get to wastewater, that's a different story. The main point to look at here is the bottom the fund balance ending. So when you look at the last year of the plan, so fiscal 31 ending fund balance is at 32.2 million. That shows a healthy fund balance. It also shows me that even though we in the rate study projected some additional loan and bond requirements, we may not need that because there's enough fund balance there to cash pay those projects. So, we monitor this as we go and uh we'll decide when we get closer to starting those particular projects.

Any questions on the fund balance? Kathy, I think uh let's see, Patrick, and then Lois. Oh, okay. Lois, you're up.

Okay. Um, I was so you were hitting on something and now I you just confused me because I was looking at about halfway down there's uh capital sources and bond proceeds and I thought we were talking about bond proceeds. I know we're going to talk about it in the next wastewater section, but what is out there in fiscal year 293031 growing growing sources or proceeds? pro those would those would be planned projects that were in the rate study planned to be funded through WHIFA WIFFA loans. One of them is the PAS remediation. Um I was just pulling that up here. Do you have the other ones?

North airport distribution loop and PAS. So the three projects are Sorry, can I see that? The three projects are the north airport distribution loop which would run along the northwest side of the airport to provide connectivity and then POS remediation and the water line to section 32 or section 33 for the AED development agreement

about the 2.5 million in this coming budget. Is that the end of something?

So that's the end. So, we're currently rebuilding our zone 41 tank and pump station, and that's part of the funding, the WIFFA funding for that particular, it's currently under construction. Okay, if there aren't any other questions on water, we'll switch over to wastewater. And Steve is back to tell us about some initiatives they're doing in wastewater collection. back again. Uh wastewater collection is obviously the lift stations and the pipelines that we use to trans transmit uh wastewater. Uh we have 65 lift stations uh and we just cannot use cannot get them all completed as as well as we want to. So um just a lot of old infrastructure. So, we have a lift station repair program that we do inhouse where we upgrade the pumps, upgrade the electrical panels. A lot of the electrical panels are so old that we have to have devices in them to make conversions to make the new pumps work. And so, we're replacing the electrical panels and and the pumps. The one that you see here on this slide is Forest Trails 2. We did that last year. Uh this year we we were asking to do Forest Trails one and Timber Ridge one small lift stations but impossible to get the sewer out of those areas unless we have lift stations. And so we uh we work on these in-house and build them as we can. So that's what this station that's what this uh this program is. Any questions on that? The second program is a trench repair program. This is a a program where we go through and insert new pipes or break

apart old pipes and put new pipes in them. Uh pipe bursting is what is the common term for that. We're able to take the old pipes, break them out, put a new pipe in its place, and upsize the line. You don't have to have trenches all throughout the neighborhood. You can do it all underground. So, this is a project that we're going to be one of the projects we're going to be featuring this year is on Ruth Street in conjunction with C3, which uh is the the lift station uh and the pumps and the pipelines that connect part of centralization. And so, we'll be using pipe bursting in that situation to try to save as much time as we can. Uh we'll also be using what's called the point repair. This is where they put a little robot in the in the pipeline and it's able to pipe uh to cover a crack or some kind of problem within the pipeline that's less than 4 in and it just goes in there and it's able to to patch it. Saves us from having to do ground work or digging them up. It's a great program. Uh we do between 35 and 40 of these a year. The next one is our manhole repair and replacement program. This is an ongoing program. Uh we have about 9600 manholes in the system. Uh this also comes out of the consent order from the ADEQ that required us to reduce the amount of inflow and infiltration that we have in our system. So, we've been focusing on brick manholes, which we have a a large large number of uh every year we aim to do about 50 manholes and uh we budget the money to to try to do that. So, that we've you approved some night

work for us last year to do some of these manhole repairs and so we're going to continue moving moving our way through the system. Any questions with that one? Trick. How many a year? We try to do 50 a year. Yes. It doesn't math very nicely, does it? And and the math to 9600. Yeah, it's a generational I should be off council by then. Yeah, it it's it's a generational program

and a brand new program, too, to be fair. We're working our way through it and we'll most likely increase that number over time. Yeah. And the last thing up there on the screen is the centralization cost analysis which Councilman Garing asked about earlier in the meeting. Uh we'll be bringing a contract to council or we'll be initiating a contract here soon to to discuss spending uh taxpayer dollars to evaluate the costs and benefits of centralization. Uh, I'd like to add that in the uh five-year CIP plan, uh, my math, it added up to 104 million.6. So, in the in the three-year mayor, it's um it's about a hundred million and in the fiveyear, it's about $150 million in capital.

150 in capital. Yikes. Yeah. And we're going to talk about that here on a slide coming up. Okay. Yeah.

Okay. So, moving on to our wastewater treatment plants. So, we have two, one at Sundog and one at airport. Uh this these projects that I'm going to bring to you uh encompass both of those. The first one is a is the air diffuser membrane replacement. When when you have an aerration chamber, you have to have metered air coming out and they're polymer type discs that sit on top of them. And as they as the air comes out, they wear down. And so we replace them every 10 years or so. This is year three of three to uh replace all of these air diffusers at the airport plant. And it just helps with to making it more efficient in treat in this treatment process. The second one is at the Sund Dog air uh Sund Dog plant. The uh this is a blower and repair program. If you have air, you have to have blowers. The blowers at Sund Dog are starting to end come to the end of their life. We currently have a single blower working. Uh this blower would be the backup and actually would become the primary. So then we can redo the other blowers that are within the system. And lastly, because we sell our effluent, we have to filter it. The traveling bridge filter rehabilitation program. Two years ago, uh you gave us $800,000 to replace the under part, the the underground part. This year we're asking for the funds to replace the above ground stuff, electrical, the bridge itself. It actually runs on like train rails that need to be replaced. So that's where uh this is going to complete an entire filter rehab.

All right. If there's no questions on that, we'll move into the capital program for uh wastewater. So, I've I've bolded uh the four projects that are getting ready to um well, a couple of them are getting ready to go to construction and a couple of them are in design. But, mayor, to answer your question about the 150 million in in uh loans, which we did have a presentation earlier this year from a bond council who came up and explained that to us, and this is why uh we're exploring those kinds of options right now. But the Sund Dog trunk main phase C is a $43 million project. Willow Creek gravity sewer um which is along Willow Lake Road is a $14 million project. The airport water reclamation facility solids handling facility is a $12 million project and the deep well wastewater and airport distribution loop um as you mentioned is $21.5 million. Uh those projects are scheduled for debt funding. The ones bolded here, Tim and I are going to go through and kind of explain what the projects are. We also have a couple of projects that are in design. The airport distribution loop is currently in design and the Prescuit East area regional lift station, which we call the Pearl, um is also currently in design. Uh let me ask you this. Are we u maxed out on our WIFFA funding? And so now we're going to have to issue bonds.

So, mayor, it's not that we're maxed out on our WIFFA funding. And and Lars can come up if I don't answer this question correctly, but WIFA is not as forgiving with wastewater loans as they are with water loans. On our water loans, uh, one, if we make our payments on time, um, we get down to the end and there's loan forgiveness in the package. On the wastewater side, that's not true unless your project is of a value of at least 50 million. And none of these projects alone is $50 million. Also, WIFFA has started reducing the length of the repayment period to 20 years. That's a huge burden on the people who live here for the next 20 years when this infrastructure that I'm showing you should last this community at least 50 years and probably longer than that. So we're looking at ways to spread the debt out over more time so that the people who are using it are paying their share instead of the people in the next 20 years paying for everybody for the next 50 years. So that's kind of the rationale be behind looking for other funding options. One because loan terms are not as favorable as they used to be and the second so that we can spread the debt over a longer period of time. Did I get that right L? Sweet. I got thumbs up. Okay cool. All right,

Tim.

Uh, good afternoon again, Mayor and Council. So, the first project I'll start with is our Sund Dog Trump main phase C3. I know we've had some discussions about this um in the past. Um, it will begin at a regional lift station um right uh adjacent to Granite Creek Park. It's actually on a piece of property that we've acquired from actually the council will vote on that I believe in July. um property acquisition at the KYC CA radio station site. Um at that point it become a force main and there will also be a gravity m a new gravity main that feeds it that's approximately 3,800 ft long um coming from over in the Miller Valley area over to that lift station. Um that'll be a new 24 in Hobos gravity uh sewer man. And then starting at the radio station that line is approximately 27,000 lineal feet in length. um kind of runs westerly, goes up through the Dexter neighborhood, up Roo Street, past the high school, um eventually goes past Taylor Hicks, cuts across to Tamarak, um intersects with Roser um a little bit. Uh I'm drawing a blank on the name of the street. There's a little subdivision there. Um but it intersects with Roser, uh eventually connects with SR89, and then we'll uh tie be tied into a line that's waiting for it um at Presc Lakes Parkway. It was part of what we did when we did the uh Sund Dog lift station project. There's a a pipe there waiting to receive this one. Um so uh this project will address a current ADAQ consent order that we currently have. Um as well as the 27,000 lineal feet of pipe. We have uh approximately 40 new manholes. Uh 30 new air release valves because the pipe does not flow consistently uphill. It kind of goes up and down. So, at every high point, we have to put an air release valve, air release valve in, as well as five odor control units. Uh, so we're not a nuisance to the neighborhoods. Uh, there's also drainage and roadway improvements that will be done as part of this project as well.

Next, uh, so this is the deep well wastewater and airport distribution loop. Um, as Gwen mentioned, this is a development agreement obligation for the city. Uh there will be new trunk mains uh approximately from the the left hand side of the screen. So that's kind of the western edge of uh section 34 over to the airport crossing underneath uh highway 89. Um this will eventually be tied into by the developer to the left side of the screen and it would eventually allow the lift station that was installed with the Hidden Hills development to uh to go away. They'll be able to gravity all that distance. And then the upper right hand portion of the screen um again it's it's going to be as upsizing the size of the pipes to uh help with the increased capacity in that area. Um it crosses the airport. Um the white building you see there is the FedEx building. We installed a pipe uh through that area a few years ago to kind of meet up with this one. And then again the uh water main uh loop uh will complete the north zone 12 system loop uh on the north side of the airport.

Yeah. And how is that runway extension going to affect this pipe? Currently, right now, we're looking at pipe bursting that um as an interim measure um because we just really can't wait much longer to allow the airport runway process to to run its course. So, we're looking at pipe bursting that. We've had conversations with the airport um to at least get that upsized to a point where it helps us with capacity in the meantime. And then they'll be putting the runway over it. Yes.

Okay. uh the Willow Creek gravity sewer project. Um as you pretty self-explanatory, it goes right along uh goes right along Willow Lake Road. Um the beginning of the project on the lefth hand side is a current existing lift station. Um it proceeds easterly, goes around the curve and will go to the existing Prescat Lakes regional lift station. The Prescat Lakes re uh lift station will be completely reconstructed. new wet wells, new pumps, new generator. Um it's approximately 6,600 lineal feet of new 30-in uh gravity pipe. Um approximately 19 new manholes in this project. And it eliminates at least two lift stations. The big lift station that's on the far left hand side. And then just before you get to the curve, there's a neighborhood lift station that currently uh dumps into the system. That will be able to go away as well because we able to go gravity. Um, and that's pretty much it for that one. And, uh, another project that's, uh, part of a development agreement obligation, as Gwen mentioned, we affectionately refer this to this project as the Pearls uh, for Prescuit East Airport Regional Lift Station. It's located uh, north of SR89, kind of just a little bit west of the Peine Trail. Um, it helps meet future capacity requirements uh for uh DA with AED for sections 32 and 33. Uh, the area right now is currently served by a lift station um that's just not going to be capable of meeting future demands. So, this lift station will need to be constructed at this location. Be happy to answer any questions you guys may have.

No. Okay, I'm leaving. Mayor. Okay, Mary. Um, the Willow Creek gravity sewer, we um recently have heard about uh some archaeological work that's happening along this same stretch. I see it's budgeted for this coming fiscal year. Do we have any understanding whether or not that'll be a hitch in the getalong as far as getting this work done? The archaeological work is complete. Sorry, the archaeological work has been completed. I didn't know that. Thank you.

All right. In wastewater treatment, we have uh two upcoming projects. As you know, currently SR89 improvements affluent wastewater pipelines is in design and we will be going to bid this summer for airport water reclamation facility solids handling building uh to the tune of $12.6 million. So the first project the uh effluent wastewater SRD9 road improvements I think you are all familiar with this. Um so it's basically the project limits are from Zip and Trail on the north to Willow Lake Road on the south. Um it'll be an installation of a new uh 24-in HDPE or hydro polyethylene uh pipe for effluent and a new 24-in uh gravity sewer main in the corridor. Um, there will be some minor road safety improvements as needed in some of the areas to improve sight lines and traffic movement. Um, that's about it for that one. We've talked about it quite a bit.

And then the airport.

Yes. Mhm. So, this is located out at the current airport water reclamation facility site. Uh, the current solace handling facility will not meet future capacity demands. Uh the it plants currently permitted for 4.75 million gallons a day. Um the project will include the installation of a 400 uh gallon per minute centrifuge. Currently has a 250 gallon per minute. Um it'll also provide for future expansion for up to three uh 400gallon per minute uh centrifuges. And as Gwen mentioned, that project will probably go out to bid this summer. Uh Lois,

so a question. I'm sorry I'm confused. Is is the current airport water reclamation center capacity insufficient or are you trying to build incremental capacity for future demand? I'm not sure. She might be able to help me on that one. The answer to that is yes. We have a capacity issue and we're building if we're going to upgrade the facilities, we want to upgrade them so that we don't have to upgrade them when we're doing the entire plant. So, we've grown while we've centralized and so now we're near capacity at the place we're centralizing to.

Correct. Which is why we're trying to make them make it take up to 15 million gallons of of flowy a day. Okay. So why was why didn't we keep Sund Dog open longer? It it's still open, but it does not treat solids. All of our solid treatments happened at the airport. And Mayor Prom, Sund Dog still does treat. We treat a million gallons a day at Sund Dog. Mhm. And we send a million gallons a day from Sund Dog to the airport water reclamation facility. So we we are we have been over the last 15 years saying we were going to take Sund Dog offline in the next 5 to seven years but it's been 15 years right

and so when we do the centralization evaluation that's one of the things we're asking the um consultant to look at is whether we should keep Sundog online but that would be a very big capital investment to do at this point because we have for the last 15 plus years

not maintained that facility in a manner or even rebuilt it which it It's been rebuilt twice already. So, we haven't done those things. But we are asking the consultant to look at that as well. But Steve is Steve is correct when he says we are we are building because we don't have enough capacity to treat solids because we don't treat solids at Sund Dog anymore. And we are also looking to the future when the airport water reclamation facility is at its maximum capacity. So that we have we're building a building that we can add on to in the future. it will not be at its full capacity today even when we when we re when we build it. So again we we had a plan we're we're following the plan to centralize and part of that is taking Sundog offline which we have been gradually doing over time

and then we're going to invest a lot up at the airport probably for many years to come. The airport water reclamation facility was built for future expansion. It was built in a manner so that we could expand it in the future. Okay. And the next expansion I believe is the last one, isn't it, Steve? I I believe the next one is the last expansion, is it not? uh for for now. Yes. I believe for build for buildout based on so when we do the master plans the consultant looks at what what is the maximum number of people we're going to serve and for buildout the next expansion of the plant is for buildout of the city in terms of how many homes it can accommodate.

Does that cover all of our development agreement and all of our economic development plans and visions? Yes, ma'am. We update it every 5 years. So when they add new development agreements in over the last 15 years, those are integrated into the master plan and the master plan is updated to accommodate those. Okay. And because your development agreements have a maximum number of residents that helps us to quantify what those maximums look like. Yeah. And also the airport uh reclamation facilities already stubbed out. Isn't it already been stubbed out for um increased capacity?

Ye. Yes, mayor. It was built It was built to be added on to in phases. This will be the third phase. Mhm. Well, here's here's a question I'm having a hard time with. Um, if we're using the same amount of water as we did 30 years ago, then why do we have to massively increase our sewer water treatment? Because you have 15,000 more homes that haven't been built yet. So, we will be using more water. You will in the future. Yes, ma'am.

Okay, got it. short person, tall person.

So again, here is the five-year uh forecasted plan for the wastewater fund. Contrary to the water fund, this one has a lot of debt issuances as was already talked about. It totals 150.3 million over this 5-year period. And this, you know, as Gwen mentioned, these projects do have a useful life of 40 to 50 years. We will be looking at issuing debt starting in the next fiscal year um through revenue bonds was the approach we had presented to council yet to be voted on but that was the recommendation to go that direction for longer terms so that we can pay off that uh investment over a longer period of time. The end of fiscal year 26 fund balance in the general funds 25 or sorry 12.6 six million. So with the capital plan presented, that's the only option is to then to fund this through bond proceeds.

Yeah. And we can issue that debt without uh going to the taxpayers for a vote. Correct. Revenue bonds are council authorized. Okay.

The point I wanted to make here is it was as you're issuing debt, then you're also incurring additional operating expense through debt service. So there's a new debt service line um in the middle there in the expenditure category. So we'll be adding another 7.2 million of of uh debt service to this fund. However, if you compare that the operations at 25.8 in fiscal year 31. The revenues are sufficient to pay for that. And that's all in the design of the rate study is to make sure that this happens. And that's all I have on this unless there's any questions.

Well, these are pretty sobering numbers. And it's um we've been growing and growing and growing and adding more and more subdivisions and more and more development agreements with our obligating our taxpayers and we're basically just mortgaging the farm here. And um but we have no choice. So this is um I guess reality is biting our writing biting us right in the nose and it's some discussion that uh when we were doing all these uh annexations we didn't think about this obviously or maybe we did but it didn't uh impress upon us we didn't care you know so anyway any comments.

Yeah, we're about to close in on five o'clock and we've only covered 34 of 57 slides. Yeah. You want to adjourn maybe and uh just wrap it up and we can come back and have another session because this is we started at one. Yeah. And this is we can barely think anymore. It's up to you. Yeah. Works for me. Yeah. We can schedule another session here. Okay. Uh when it up well this is this is a big Friday night or maybe Sunday but

yeah. So, we're going to have to uh I think adjourn and then come back, find some time, another couple hours. Yeah, because I think this we're just getting to the point where we're just kind of u this has been a lot of a lot of information to digest for four hours. Okay. So, any public comment before we adjourn?

You do have public comment, mayor. Okay, let's take some public comment. Sundrop Carter, she's been sitting in the back patiently.

I saw you back there crocheting or knitting or something. Yeah, I'm getting a lot of pillow covers done while I'm at meetings. Uh whole interior decorating thing is happening at my house while I uh because of city council. My comment is actually about a piece of the agenda we haven't talked about yet. Um, which is streets. Um, so I'm a regular bike rider. I ride around Prescuit. Um, and I noticed and maybe at the next thing I will be educated about whether I was right in reading the budget that it doesn't seem to be there's funds allocated for uh, bike lanes. So, as a bike rider, I will say most of the streets in Prescuit are not super safe um because there are no bike line bike lanes or the bike lanes quite frankly are not sufficient. So, I live up above the high school near Taylor Hicks. Um technically there are bike lanes on Willow Creek. I only ride on Willow Creek going to the farmers market at 7:30 in the morning when there's no traffic because those bike lanes are maybe 6 in wider than my handlebars. So drivers going by, especially in trucks, have to swerve around me or else they their mirrors would be in danger of smacking me in the head. Um, so I would just encourage city council to prioritize. You know, we talk a lot about traffic in the in Prescuit and the needs, you know, the needs of cars, but maybe reframing how we think about our streets policy to prioritize the needs of people since really the transportation is about moving people from point A to point B, which means we could think about bike lanes, public transportation, um things beyond just how do we make roads better for cars, but how do we make roads better for the people who live Um because quite frankly riding your bike in Prescuit is like an extreme sport. Um and finally, I did just want

to note at the beginning of this meeting, I believe mayor, you said there were only like maybe two of us um non city employees in the audience, probably because it's 100 p.m. on a Monday and the 50 plus% of Prescatonians who are not retired yet are at work. Um, so maybe explore some times for meetings where people who are not as lucky as I who are self-employed and can just schedule to sit around for four hours um in the afternoon, but expand the time so more people can attend. Thank you. I thought it was the topic that was keeping people away. Tony Hamr,

mayor and council, thank you very much for the time. Um Kathy, I agree with you. These are very sobering numbers. We have a huge d job to do here. The lady that just spoke also brought in the issue of we need to involve the community in terms of where we are today. So we've got a major marketing and communication issue with the public. In addition, we've got sobering numbers. So you know as I looked at the budget and I've listened today you know we need to do a scenario analysis the top side and the bottom side in terms of the budget because otherwise when we get a slight surprise we won't have a way of approaching it. So Don I believe you know to do a scenario analysis would be very very beneficial and then to look at what it is that you'll have to react to if any of those scenarios were to happen. So please listen to that. Um secondly, we have a heavy reliance on a very volatile sales tax. We have an economy out there in the world that is changing in front of our eyes and we need to again put that into how we look at a scenario

around the city of Prescuit. In addition, on a statewide basis, we have legislative uh vulnerability in terms of our abilities to raise taxes. Thirdly, um we're very dependent on the tourist yet we don't have a tourism business plan. We've always been very fortunate with people coming up here in the 20 years that I've lived here, but we need to do better than that because that delta between revenue and the costs of our tourism business needs to be seriously looked at. Finally, um I worry about the age of our community, not the people, the infrastructure. And while we've heard today of 58 million here for Deep Well and 15 million over here, we have an aging infrastructure that we need to get very serious about. We need a 20 year capital projection so that we can see how we survive as a community. But there's only two of us here uh that are interested enough to bring this up. There are eight people watching on YouTube though. So, we've got at least 10 of us that are interested in terms of your deliberations. I hope you'll take

my remarks seriously. Um, I think we're in a very narrow spot. It's not the same as humus, but uh it's close. Thank you.

Thank you. Um, let me just throw out some more numbers. Uh this kind of reminds me of killing the uh golden goose that's laying the golden egg with these development agreements. Not only do we have an almost $60 million obligation to Deep Well Ranch, but Storm Ranch, which is going in on the uh east side on that ridge overlooking uh Watson Lake. Uh we've got a million-doll um obligation to run water and sewer mains there. Uh on Granite Dell's Ranch, we have a $7.25 million obligation for water and sewer um infrastructure there. AED to run uh water out and sewer out to uh section 33, 6.5 million. And then also we have the uh Fippen Trail crossing that's uh going to be starting here pretty soon. And that's a uh $10 million U expenditure. And these are all in uh development agreements that uh we negotiated ourselves and we have no one to blame but ourselves if if you ask me. So, um I just uh think that the taxpayers need to be aware of um all this is going to be funded uh with debt. So, anybody have any more comments?

I do, Madam Mayor. Yes, Ted. Thank you. The best way to pay for this is to generate revenue, and we need to do a better job of coming up with ways to grow this economy, which was in the 2023 resident survey. Okay, any more comments? If not, this meeting is adjourned and we're going to be rescheduling the uh balance of the discussion at a near future date. Thank you.