Jun 16, 2026 City Council

[CALL TO ORDER]

[00:00:12]

CAN I GO IN HERE? WE HAVE NO. LET'S GET RID OF ECHO. ONE. ONE OF ME IS PLENTY. REGULAR CITY COUNCIL MEETING TO ORDER. WILL THE. WILL THE CLERK PLEASE, PLEASE CALL THE ROLL. COUNCIL MEMBER DEHOFF A COUNCIL MEMBER PICKLES HERE. DEPUTY MAYOR MAYEDA HERE. AND MAYOR VOSS HERE. DEPUTY MAYOR, MAY I PLEASE LEAD US IN THE PLEDGE? FOR A MOMENT OF SILENCE, I WOULD ASK YOU TO REMEMBER THOSE WHO TRAGICALLY LOST THEIR LIVES YESTERDAY AT EDWARDS AIR FORCE BASE. WERE JUST BEGINNING TO LEARN WHO THE INDIVIDUALS WERE.

JEREMY SMITH, FOUR YEAR OLD SON AND A. OR I'M SORRY, A FOUR MONTH OLD SON AND A TWO YEAR OLD SON. AND LIEUTENANT COLONEL MILES MIDDLETON, ALONG WITH SIX OTHER. SO PLEASE REMEMBER THEM AND THEIR FAMILIES. IN THIS MOMENT OF SILENCE.

THANK YOU. FIRST UP ON THE AGENDA IS PUBLIC COMMENT IN ACCORDANCE WITH STATE LAW, AN ITEM NOT SCHEDULED ON THE AGENDA MAY BE BROUGHT FORWARD BY THE GENERAL PUBLIC FOR COMMENT. HOWEVER, THE CITY COUNCIL WILL NOT BE ABLE TO DISCUSS OR TAKE ACTION ON ANY ISSUE. AND WE HAVE NO SPEAKERS ON PUBLIC COMMENT. MOVING ON TO THE CONSENT

[CONSENT CALENDAR]

[20. Report on Vacancies, and Recruitment and Retention Efforts ]

BUT TO SUMMARIZE, THE VACANCY RATE FOR THE POWAY FIREFIGHTERS ASSOCIATION IS 4.17%, WITH TWO VACANCIES OUT OF 48 SWORN POSITIONS. AND WE ARE IN THE PROCESS OF FILLING BOTH OF THOSE VACANCIES WITH SELECTED CANDIDATES WHO ARE GOING THROUGH THE BACKGROUND PROCESS RIGHT NOW. FOR NON-SAFETY EMPLOYEES REPRESENTED BY TEAMSTERS 986, THE VACANCY RATE IS 1.89%, WITH ONLY TWO VACANCIES OUT OF 105.98 FULL TIME EQUIVALENT POSITIONS. THE VACANCY RATE FOR THE MANAGEMENT CONFIDENTIAL GROUP IS 6.9%, WITH SIX VACANCIES OUT OF 87 BUDGETED POSITIONS. AND THE OVERALL VACANCY RATE FOR THE ENTIRE CITY AS OF JUNE 1ST IS

[00:05:03]

BARRIERS TO RECRUITMENT AND RETENTION ARE THE SAME BARRIERS EXPERIENCED BY OTHER PUBLIC AGENCIES. THE HIGHER COST OF LIVING IN SAN DIEGO COUNTY AND COMPETITION WITH THE PRIVATE SECTOR. LOOKING AT THE VACANCY RATES FOR THE CITY OF ORGANIZATION, IT'S CLEAR THAT POWAY IS AN EMPLOYER OF CHOICE AMONG PUBLIC AGENCIES AND PRIVATE. I AM CONFIDENT THAT WITH CONTINUED TEAMWORK WITHIN THE ORGANIZATION, FROM TOP TO BOTTOM AND WITH THE LABOR GROUPS AND WITH THE SUPPORT OF THE CITY COUNCIL, POWYS VACANCY RATES WILL CONTINUE TO BE WELL BELOW THE THRESHOLD SET BY AB 2561. THANK YOU. THIS CONCLUDES MY PRESENTATION. I'M HAPPY TO ANSWER ANY QUESTIONS. THANK YOU. JODEEN GREAT REPORT. GOOD NEWS. I HAVE NO SPEAKERS ON THIS ITEM.

I WILL NOW CLOSE THE PUBLIC HEARING COUNCIL QUESTIONS. DISCUSSION. PETER, ANYTHING? MR. PICKUS. ACTUALLY, IT WAS A I GUESS WE GOT AN ECHO AGAIN. I WAS JUST WHEN I WAS READING THIS, I WAS THINKING BACK OF THE OTHER END OF MY CAREER AT THE BEGINNING WHEN I WAS WORKING AT IBM, WHICH FOR THOSE THAT ARE TOO YOUNG TO REMEMBER, THE 80S WAS MUCH LIKE, YOU KNOW, GOOGLE OR APPLE IS TODAY. AND ON THE FIRST DAY, MY MANAGER SAT ME DOWN AND EXPLAINED TO ME THE IBM VALUES, WHICH WERE RESPECT FOR THE INDIVIDUAL. WE'RE IN BUSINESS TO SERVE THE CUSTOMER, AND EXCELLENCE IS EVERYTHING WE DO. AND IT WASN'T JUST WORDS, THEY ACTUALLY LIVED IT. AND THE REASON I'M TELLING YOU THIS STORY TODAY IS THAT'S WHAT I SEE IN THE CULTURE. THE POWAY STAFF TODAY. EVERY INTERACTION HAS BEEN MOSTLY RESPECTFUL. NEVER HAD ANYTHING TO DOUBT WHETHER I WAS A PRIVATE CITIZEN OR A SITTING AS A CITY COUNCILMAN. THE STAFF ACTUALLY DOES SERVE THE CUSTOMER, IN WHICH CASE IS THE RESIDENTS AND THE EMPLOYEE PEOPLE THAT WORK HERE AND HAVE BUSINESSES HERE. AND THEY DO STRIVE FOR EXCELLENCE. AND SO, YES, I SEE THESE VALUES REPEATED IN THIS ORGANIZATION. AND I HAVE TO GIVE CREDIT TO CHRIS HAZELTINE OVER THERE, WHO SET THE TONE FOR THE CULTURE, FOR EVERYONE, AND TO JOLENE, WHO PROPAGATED THIS MESSAGE, AND TO ALL THE PEOPLE WHO ACTUALLY LIVED ON THIS STAFF, BECAUSE EXCELLENT EMPLOYEES THRIVE IN AN ORGANIZATION THAT PURSUES EXCELLENCE. AND FOR THOSE OF US WHO WEREN'T QUITE UP TO BEING EXCELLENT YET, IT DID ACTUALLY MOTIVATE US TO DO BETTER. AND. I ALSO SHOWS UP IN OUR UP IN OUR VERY LOW TURNOVER RATE, WHICH I ASKED JOLENE BEFORE THIS MEETING. IT'S IN THE 6 TO 8% RANGE, WHICH IS VERY GOOD. AND SO I JUST WANTED TO GIVE CREDIT WHERE CREDIT IS DUE. I THINK THE WHOLE CITY IS WITH ALL THE STAFF IN THE CITY IS PRETTY AMAZING. AND. THAT'S THAT'S ALL I HAD. THANK YOU. DEPUTY MAYOR MAIDA. JORDAN, GREAT REPORT. AND REALLY IT'S A TRIBUTE TO THE WHOLE TEAM, HOW THE CITY OPERATES. AND AND I WILL ECHO WHAT COUNCILMEMBER PIKE HAS SAID ABOUT CHRIS AND YOUR LEADERSHIP. IT WORKS FROM THE TOP DOWN AND FROM THE BOTTOM UP. I'M PROUD TO BE A PART OF IT. THIS IS A RECEIVE AND FILE REPORT. NO FORMAL ACTION IS REQUIRED. SO THANK YOU ALL. MOVING ON TO ITEM 21

[21. Resolution Amending the TransNet Local Street Improvement Program List of Projects for Fiscal Years 2024-25 through 2028-29; and Resolution Adopting the TransNet Local Street Improvement Program List of Projects for Fiscal Years 2026-27 through 2030-31]

[00:10:06]

THANKS FOR HAVING ME. THIS ITEM ACTUALLY COVERS TWO ACTIONS RELATED TO THE TRANSNET LOCAL STREET IMPROVEMENT PROGRAM. THE FIRST IS AN AMENDMENT TO THE 2025 LIST OF PROJECTS FOR THE REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM, ALSO KNOWN AS THE AATIP. THE AATIP IS FUNDED THROUGH THE TRANSCEND EXTENSION ORDINANCE, WHICH WAS APPROVED BY SAN DIEGO COUNTY VOTERS IN 2004. EVERY TWO YEARS, LOCAL CITIES ARE REQUIRED TO PREPARE A FIVE YEAR LIST OF PROJECTS TO BE FUNDED FROM THE TRANSNET HALF CENT SALES TAX PROGRAM. THE CURRENT LIST WAS APPROVED BY THE CITY COUNCIL ON MAY 7TH, 2024. RECENTLY, SANDAG ADJUSTED THE TAX REVENUE PROJECTIONS AND NOW REQUIRES THE ADDITIONAL FUNDS BE PROGRAMED, BE PROGRAMED BY COUNCIL RESOLUTION. THE AGENDA REPORT YOU HAVE PROVIDES AN AMENDED LIST OF PROJECTS AND FUNDING AMOUNTS. THE AMENDED LIST ADDS ADDITIONAL REVENUES FOR THE CURRENT FISCAL YEAR AND UPDATES UNUSED REVENUE PROJECTIONS THROUGH FISCAL YEAR 2029. IT ALSO REPROGRAMS REMAINING UNUSED FUNDS FROM COMPLETED PROJECTS TO ONGOING PROJECTS THROUGH THE AATIP PROGRAM. THE CITY OF POWAY IS ESTIMATED TO RECEIVE APPROXIMATELY $11 MILLION FOR FISCAL YEARS 2025 THROUGH 2029. THE SECOND ITEM IS THE 2027 FIVE YEAR R TIP LIST OF PROJECTS. AS MENTIONED BEFORE, EVERY TWO YEARS, LOCAL CITIES ARE REQUIRED TO PREPARE A FIVE YEAR LIST OF PROJECTS TO BE FUNDED FROM THE TRANSNET HALF CENT SALES TAX PROGRAM. THE CITY OF POWAY IS ESTIMATED TO RECEIVE A LITTLE MORE THAN 11.5 MILLION OVER THE NEXT FIVE YEARS, TO BE USED ON LOCAL TRANSPORTATION RELATED PROJECTS. 30% OF THE FUNDING CAN BE USED FOR STREET MAINTENANCE, AND 70% OF THE FUNDS MUST BE USED FOR PROJECTS MEETING SPECIFIC CRITERIA, INCLUDING CONSTRUCTION OF NEW OR EXPANDED FACILITIES, OR MAJOR REHABILITATION AND RECONSTRUCTION OF ROADWAYS. THE PROPOSED LIST OF PROJECTS IS ATTACHED TO THE AGENDA REPORT AND SHOWN HERE. THESE PROJECTS INCLUDE FULLY FUNDING THE ANNUAL STREET OVERLAY PROJECT, PARTIALLY FUNDING THE ANNUAL STREET MAINTENANCE PROJECT, AND FULLY FUNDING THE MAINTENANCE CONTRACT FOR TRAFFIC SIGNAL SOFTWARE. RECENT PROJECTS COMPLETED USING AATIP FUNDS HAVE INCLUDED THE FISCAL YEAR 25 ANNUAL STREET OVERLAY PROJECT, THE FISCAL YEAR 26 ANNUAL STREET MAINTENANCE PROJECT, CONSTRUCTION OF SIDEWALK ALONG GARDEN ROAD BY GARDEN ROAD. ELEMENTARY AND SAFETY IMPROVEMENTS ALONG POWAY ROAD AND MIDLAND ROAD. THIS COMPLETES MY PRESENTATION. I'M HAPPY TO ANSWER ANY QUESTIONS.

THANK YOU TRACY. ONCE AGAIN, NO SPEAKERS. I WILL NOW CLOSE THE PUBLIC HEARING COUNCIL COMMENTS.

QUESTIONS. MR. DEHOFF JUST VERY EXCELLENT PRESENTATION THERE, TRACY. ACTUALLY, THIS ANSWERED SOME OF MY QUESTIONS I HAD ON THE BUDGET ABOUT LIKE WHERE SOME OF THE STREET FUNDS WERE GOING, YOU KNOW, OVER THE YEARS. SO I APPRECIATE CLEARING THAT UP. I SHOULD HAVE PAID ATTENTION TO THAT. IT'S GOOD THAT WE'RE WE'RE SPENDING THE MONEY WHERE IT NEEDS TO BE SPENT. AND I IT'S ONE THING, YOU KNOW, AS WE ALL KNOW, PEOPLE LOVE THE STREETS. WHEN THEY COME HERE TO POWAY. THEY KNOW IT. AND HOPEFULLY, YOU KNOW, WE'LL GET SOME OF THOSE STREET LIGHTS, YOU KNOW, IMPROVED. AND THAT'LL BE ONE OF THOSE SILENT IMPROVEMENTS THAT THINGS WILL JUST GET BETTER. THANK YOU VERY MUCH. COUNCIL MEMBER PICUS MAYOR MADE A.

THANK YOU, TRACY. I LOOK FORWARD TO. I WAS JUST TALKING WITH CHRIS BEFORE THE MEETING ABOUT LOOKING FORWARD TO THE DAY WHEN POWAY ROAD, THAT WE GET THE AUTOMATED SYSTEM ALL THE WAY DOWN TO ALLEVIATE SOME OF THE CHALLENGES, I THINK LARGELY DUE TO THE RAPID EXPANSION OF RAMONA AND ALL OF THE PEOPLE COMING DOWN THE HILL. SO LOOKING FORWARD TO THAT WHEN THE TIME IS RIGHT. DO I HAVE A MOTION TO ADOPT THE RESOLUTION AMENDING THE TRANSIENT LOCAL STREET IMPROVEMENT PROGRAM LIST OF PROJECTS FOR FISCAL YEARS 24, 25 THROUGH 2829 AND ADOPT THE RESOLUTION ADOPTING THE TRANSIENT LOCAL STREET IMPROVEMENT PROGRAM PROGRAM LIST OF PROJECTS FOR FISCAL YEARS 2627 THROUGH 2030. MOTION FROM COUNCIL MEMBER DEHOFF A SECOND FROM ME. CHRIS. ME. OKAY, SECOND IS A ROLL CALL VOTE. WILL THE CITY CLERK PLEASE CALL THE ROLL COUNCIL MEMBER? DULL. AYE. COUNCIL MEMBER. PICAS. DEPUTY MAYOR AND MAYOR VOSS.

[22. Proposed Fiscal Year 2026-27 Operating Budget and Capital Improvement Program ]

[00:15:04]

ADDITIONALLY, THERE WAS A FIVE YEAR RATE STUDY THAT WAS COMPLETED AND ADOPTED BY CITY COUNCIL IN JANUARY OF THIS YEAR FOR THE WATER AND SEWER RATES THROUGH UPDATED COST OF SERVICE STUDIES FOR BOTH OF THOSE UTILITIES. ADDITIONALLY, GOING FORWARD, AS YOU'LL SEE IN YELLOW HERE IN PROGRESS IS A STUDY OF THE VARIOUS MITIGATION IMPACT IN LIEU AND IN LIEU FEES

[00:20:08]

SO IT'S KIND OF SHOWING A DECREASE, BUT IT'S NOT TRULY A DECREASE. FOR THE NONOPERATING ITEMS. THAT PRIMARILY INCLUDES THE CAPITAL IMPROVEMENT PROGRAM, WHICH INCLUDES $32.3 MILLION IN ADDITIONAL FUNDING BEING PROPOSED FOR THIS UPCOMING YEAR WHILE BEING BALANCED OUT BY, AS NOTED, SOME TRANSFERS INTO THE GENERAL FUND AS A RESULT OF THE NEW COST ALLOCATION PLAN METHODOLOGY IN THE GENERAL FUND. THAT INCLUDES OVER $72 MILLION IN OPERATING EXPENDITURES, YOU'LL SEE THERE A -500,000 IN NON-OPERATING, WHICH INCLUDES THE NEW METHOD, AGAIN, OF THE COST ALLOCATION. SO IT'S IT'S BASICALLY A NEGATIVE EXPENDITURE THERE WITH A LARGE TRANSFER OUT AS WELL. FOR ONE TIME COMMUNITY FACING HIGH PRIORITY CIP PROJECTS, WHICH I'LL GO OVER HERE IN A COUPLE SLIDES. THE WATER ENTERPRISE IS THE NEXT LARGEST OF THESE FUNDING GROUPS, WITH OVER $55 MILLION IN EXPENDITURES, WITH OPERATING EXPENDITURES REPRESENTING $36 MILLION OF THAT TOTAL. AND NON-OPERATING, WHICH IS PRIMARILY CAPITAL IMPROVEMENT PROGRAM FUNDING FOR OF 19.18 MILLION. THE WASTEWATER ENTERPRISE IS THE NEXT LARGEST AT $13 MILLION TOTAL, WITH A LITTLE OVER 10 MILLION IN OPERATING EXPENSES AND 2.6 MILLION IN NON-OPERATING, WHICH IS AGAIN, PRIMARILY CAPITAL PROJECT RELATED STREETS ACTIVITIES, MAKES UP ALMOST 8.5 MILLION IN EXPENDITURES, WITH JUST ABOUT 2.5 MILLION IN OPERATING EXPENDITURES FOR STREET MAINTENANCE ACTIVITIES. BUT THE MAJORITY OF ALMOST 6 MILLION IN NON-OPERATING. AND AS WAS MENTIONED BY TRACY ON THE LAST SLIDE, MOST OF THAT MONEY IS GOING TO MAKE SURE OUR STREETS ARE IN GREAT WORKING CONDITION.

ALSO SHOWN HERE IS THE PENSION RESERVE FUND, WHICH IS A STRATEGIC SET ASIDE OF FUNDS FOR PER CITY POLICY, AND THAT INCLUDES A ALLOCATION OF A LITTLE OVER $2 MILLION IN THE BUDGET TO PAY FOR THOSE PENSION RELATED EXPENSES. NEXT ARE THE DRAINAGE FUNDS WITH PROPOSED APPROPRIATIONS OF 3.8 MILLION, WITH A LITTLE BIT HIGHER, ABOUT 2 MILLION ON OPERATING IN ABOUT 1.7 ON THE NONOPERATING CAPITAL IMPROVEMENT PROGRAM SIDE. AND THEN LAST ON THE SLIDE HERE, OUR DEBT SERVICE FUNDS AND OTHER. AND YOU'LL SEE THAT REPRESENTS A -2.8 MILLION IN EXPENDITURES. AND THAT'S PRIMARILY TIED TO TRANSFERS IN. OKAY. SO. LOOKING AT THE GENERAL FUND, WHICH SERVES AS THE PRINCIPAL FUNDING SOURCE FOR GENERAL SERVICES SUCH AS FIRE PROTECTION, LAW ENFORCEMENT, PARKS AND RECREATION, PUBLIC WORKS NOT TIED TO UTILITIES PLANNING AND ENGINEERING, AND OTHER OPERATIONS, NOT FUNDED BY DEDICATED OR RESTRICTED FUNDING SOURCES. TOWARDS THE TOP. HERE YOU'LL SEE THE REVENUE SECTION WITH A TOTAL INCLUDED OF ALMOST $73 MILLION. AND WHAT THAT REPRESENTS IS ABOUT A $200,000, OR 0.3% INCREASE OVER THE CURRENT YEAR BUDGET, WITH MOST OF THAT REPRESENTED IN THE OPERATING REVENUE SIDE AND ABOUT 800,000 IN TRANSFERS IN A LITTLE OVER 800,000, WHICH WE'LL GO OVER IN A BIT, SHIFTING DOWN TO EXPENDITURES, THE OPERATING EXPENDITURES TOTAL 72.7 MILLION, WHICH WAS REFLECTIVE OF AN INCREASE OVER THE CURRENT YEAR BUDGET OF 1.9 MILLION, OR 4%. AS NOTED IN THE BUDGET OVERVIEW SLIDE, THIS IS THE FIRST YEAR THE CITY IS IMPLEMENTING THE NEW COST ALLOCATION PLAN, SO IT LOOKS LIKE EXPENDITURES ARE.

INCREASING SUBSTANTIALLY COMPARED TO THE CURRENT YEAR, BUT THEY'RE ACTUALLY NOT BECAUSE THEY'RE BEING RECOVERED THROUGH THAT TRANSFER IN. SO THE NET DIFFERENCE IS ABOUT 4%.

[00:25:06]

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

SO AGAIN, POWAY HAS BENEFITED PRETTY SIGNIFICANTLY FROM THE STEADY FINANCIAL GUIDANCE FROM THE CITY COUNCIL, ALONG WITH STAFF'S PRUDENCE IN FINANCIAL MANAGEMENT BEST PRACTICES OVER SEVERAL DECADES NOW, RESULTING IN LONG TERM FISCAL STABILITY FOR THE CITY. IN THIS BUDGET,

[00:30:05]

[00:35:02]

ONE OF THOSE WILL WORK IN THE CIP CAPITAL IMPROVEMENT PROGRAM DIVISION, WITH THE OTHER IN THE STORMWATER DIVISION, WITH BOTH ADDRESSING LARGE WORKLOADS IN THESE AREAS THAT EXCEED THE SUPPORT LEVEL OF CURRENT STAFFING LEVELS. LASTLY, A RECLASSIFICATION IS INCLUDED FOR THE SENIOR CIVIL ENGINEER POSITION TO A PRINCIPAL CIVIL ENGINEER POSITION TO ADDRESS INCREASED DEMANDS OF THE TWO DIVISIONS OVERSEEN BY THOSE BY THIS POSITION. SO THAT'S THE LAND DEVELOPMENT GROUP AND THE STORMWATER GROUP. IN PUBLIC WORKS, THERE IS A PROPOSAL TO ADD 1.0 FTE PARKS, MAINTENANCE WORKER POSITIONS TO ENHANCE MAINTENANCE FUNCTIONS AND TO IMPROVE CUSTOMER SERVICES FOR THE DIVISION THROUGH AN EXTENDED OR, EXCUSE ME, EXPANDED RANGE OF WEEKEND ACTIVITIES. AND LASTLY, IN FINANCE, WE ARE PROPOSING TO ADD A INFORMATION TECHNOLOGY MANAGER POSITION FOR SIX MONTHS OF NEXT FISCAL YEAR AND A PRINCIPAL FINANCIAL ANALYST POSITION FOR THREE MONTHS OF THE FISCAL YEAR. THESE POSITIONS ARE GEARED AT ADDRESSING THE IMPENDING RETIREMENT OF THE ASSISTANT DIRECTOR OF FINANCIAL OPERATIONS LATE NEXT SUMMER, AND ALLOW FOR OVERLAP OF THESE SEPARATE ROLES AS SUCCESSION PLANNING EFFORTS. THE FIRST NOTED POSITION WILL RESULT IN A REVISED MANAGEMENT STRUCTURE, KIND OF BACK TO AN OLDER STRUCTURE THAT WE HAD SOME YEARS AGO IN THE IT DIVISION. THE SECOND POSITION WILL OVERSEE PURCHASING FUNCTIONS FOR THE CITY, ALONG WITH BUDGET DEVELOPMENT AND MANAGEMENT FUNCTIONS THROUGH TECHNICAL EXPERTISE AND PROJECT MANAGEMENT SKILLS. LASTLY, THE CUSTOMER SERVICE DIVISION IS PROPOSING A RECLASSIFICATION FOR ONE OF THE THREE FTE CUSTOMER SERVICE TECHNICIAN POSITIONS TO A SENIOR CUSTOMER SERVICE TECHNICIAN CLASSIFICATION. THIS REVISION WILL RECOGNIZE AND DEDICATE THE HIGHER LEVEL TECHNICAL SKILLS, ACCURACY, AND ACCOUNTABILITY REQUIREMENTS OF THIS UTILITY BILLING ROLE WITHIN THE GROUP. AGAIN, THIS WILL SUPPORT RETENTION AND FUTURE SUCCESSION PLANNING EFFORTS. THIS IS A CLEAR KIND OF LADDER WITHIN THE DIVISION AS WELL. NOW SHOWN HERE ON THIS SLIDE ARE SOME OF THE NEW PROGRAMS AND EXPENDITURES INCLUDED IN THE PROPOSED BUDGET. SO LOOKING AT THE PUBLIC WORKS DEPARTMENT, AND AGAIN, IT'S WORTH NOTING ALMOST ALL OF THESE IN THE TOP SECTION HAVE ZERO GENERAL FUND IMPACT. BUT THOSE ARE HITTING SOME OF THE ENTERPRISE FUNDS. FOR EXAMPLE, A NEW VEHICLE PURCHASE FOR THE UTILITY SYSTEMS, OPERATIONS AND MAINTENANCE GROUPS WILL BE SPLIT BETWEEN WATER AND SEWER SERVICES. SOME NEW CHEMICAL ANALYSIS SOFTWARE FOR THE WATER SYSTEM GROUP MAKE THEM A LITTLE MORE EFFICIENT IN ANALYZING AND ADJUSTING CHEMICAL RATES, SOME AS NEEDED FUNDING FOR SEWER LATERAL CLEANOUT REPAIR SERVICES, WHICH SEEM TO BE COMING UP ANNUALLY. A NEW SEWER LATERAL CAMERA AND THEN THE OCCUPATIONAL, OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION. OSHA HAS AN UNFUNDED MANDATE FOR US TO UPDATE OUR ARC FLASH PROGRAM. SO IT'S BASICALLY TO MAKE SURE STAFF ARE SAFE AND DON'T GET ELECTROCUTED. AND ALL OF OUR SYSTEMS ARE PROTECTED. SO FUNDING TO COMPLETE THAT UNFUNDED MANDATE IS INCLUDED, ALONG WITH A COUPLE NEW DIRT COMPACTORS TO MATCH THE EXISTING FLEET THAT THE CITY HAS. LOOKING AT THE FIRE DEPARTMENT, THERE IS A PROPOSAL TO HAVE TWO NEW HIGH TECH EMERGENCY MEDICAL SERVICES TRAINING MANIKINS, SO OUR PARAMEDIC SERVICES AND PARAMEDIC FOLKS, WHICH ARE ALL OF OUR STAFF, CAN GET THAT REAL TIME FEEDBACK AS THEY GO THROUGH THOSE TRAINING PROCESSES, WHICH WILL BE VERY IMPORTANT. ALSO INCLUDED IS FIRE STATION TWO AND APPARATUS STORAGE STRUCTURE KIND OF HELP KEEP SOME OF OUR STUFF OUT OF THE SUN AND PROTECTED, AS WELL AS FUNDING FOR THE CHILDREN'S SAFETY TRAILER REHABILITATION FOR THE FIRE DEPARTMENT. AND BOTH OF MY KIDS ARE REALLY YOUNG AND THEY WENT THROUGH THAT AND IT WAS AN AWESOME EXPERIENCE. SO IT'S NOT AS SELFISHLY GENERATED THING, BUT I KNOW IT GETS HEAVY USE, SO THAT'LL BE GREAT. AND THE LAST TWO NOTABLE ITEMS WE HAVE ON HERE IS SWITCHING FROM AN OWNERSHIP MODEL TO A RENTING MODEL FOR THE WINTER FESTIVAL SKATING RINK RENTAL. SO IT'LL PREVENT US FROM HAVING TO STORE IT AND MAINTAIN IT AND MAKE SURE IT DOESN'T BREAK AND HAVE STAFF REQUIRED TO GO SET THE THING UP. ALSO, AGAIN, ANOTHER STATE MANDATE IS MIGRATING THE CITY FROM A.ORG ENDING. SO POWAY.ORG OVER TO A.GOV ENDING. THAT'S SOME TIME OUT. BUT IT'S ONE OF THE THINGS WE WANT TO UTILIZE OUR ASSISTANT DIRECTOR OF FINANCE TO GET DONE BEFORE HE RETIRES. SO IT'S SOMETHING ON THE FRONT OF OUR MIND AS WELL. OKAY. SO RESERVES ARE THERE TO HELP ENSURE WE HAVE A HEALTHY, HEALTHY BALANCE OF FUNDING FOR CURRENT REQUIREMENTS AND SERVICES WHILE ENSURING WE HAVE THAT FISCAL SUSTAINABILITY INTO THE FUTURE, INCLUDING FOR UNKNOWN POTENTIAL NEEDS. SO AGAIN, POWAY HAS THE HIGHEST GENERAL FUND RESERVES. AND YOU'LL SEE THAT REFLECTIVE HERE WITH THE TOP THREE GREEN SLIDES WITH THE REVENUE VOLATILITY FUND AT 10% OF

[00:40:02]

THE BRC WAS SUPPORTIVE OF THIS ONGOING BEST PRACTICE AS WELL. AND THEN YOU'LL SEE THE THE FUND BALANCE OF BOTH THE PENSION RESERVE FUND, WHICH I MENTIONED EARLIER, IS BEING BEING SPENT DOWN AT LITTLE OVER $2 MILLION NEXT YEAR. SO THIS WOULD BE THE END RESULT AFTER THAT CAPITAL IMPROVEMENT FUND OF ALMOST $2 MILLION. AND THEN THE UNASSIGNED FUND BALANCE OF ALMOST 18 MILLION. SO THE WATER UTILITY OPERATIONS FUND HAS EXPENDITURES OVER REVENUES OF JUST OVER HALF $1 MILLION IN THE PROPOSED BUDGET. AND THAT'S SOMETHING WE CAN ACCOMMODATE IN THE SHORT TERM UTILIZING RESERVES. BUT THIS WAS A KNOWN FACTOR WHEN WE BROUGHT FORWARD THE FIVE YEAR RATE STUDY IN JANUARY EARLIER THIS YEAR. SO THAT WAS WAS ADDRESSED THROUGH THE FIVE YEAR RATE STRUCTURE THAT WAS APPROVED AND ADOPTED. THE COUNTY, SAN DIEGO COUNTY WATER AUTHORITY PROVIDES ALMOST ALL. SO ABOUT 96% OF POWAY'S WATER WITH COSTS FOR PURCHASED WATER TENTATIVELY FROM THE COUNTY WATER AUTHORITY AT 3% FOR 2027. SO 3% INCREASE. SO ANYONE WHO'S KIND OF FOLLOWED OUR RATES OR WHAT'S BEEN HITTING US OVER THE LAST SEVERAL YEARS, WE'LL NOTE THAT IS A MUCH TEMPERED DECLINE FROM PREVIOUS FORECASTS. SO THAT'S GREAT NEWS. ASSUMING THAT GETS ADOPTED INTO THE FUTURE, I DO WANT TO NOTE THE WATER INFRASTRUCTURE IMPROVEMENT PLAN PROJECTS ARE THE LARGEST SUITE OF CIP PROJECTS IN THE CITY'S HISTORY. THESE PROJECTS, INCLUDING THE PHASE THREE TREATED WATER CONNECTION FACILITIES, ARE IN, WILL BE BOND FINANCE, WHICH SURELY IS THE BEST PATH FORWARD TO PAY FOR THESE GENERATIONAL PROJECTS BY SPREADING THOSE COSTS OUT OVER LONGER PERIODS VERSUS CASH FINANCING IN 1 OR 2 YEARS. SO, FOR INSTANCE, IF WE WOULD HAVE GONE THE CASH FINANCING ROUTE, WE WOULD HAVE HAD TO RAISE RATES PROBABLY HUNDREDS OF PERCENT TO ACCUMULATE THE FUNDING IN A SHORT AMOUNT OF TIME. AND THAT CERTAINLY WOULDN'T BE TENABLE, ESPECIALLY NOTING THE LARGE NEGATIVE FINANCIAL IMPACT OF DOING SO ON POWAY RATEPAYERS. AND I'D BE REMISS NOT TO THROW OUT A BIG THANK YOU AND HEARTFELT KUDOS TO THE ENTIRE POWAY TEAM FOR GETTING TO THIS POINT, WHICH IS ABSOLUTELY HUGE. I'M HONORED THAT I GET TO BE, GET GET TO BE UP HERE AND BE KIND OF THE TALKING HEAD OF IT, AT LEAST FROM THE OPERATING SIDE. BUT THERE IS A HUGE TEAM OF DEDICATED INDIVIDUALS HERE WHO MADE ALL THIS POSSIBLE. SO THAT INCLUDES IN THE FINANCE DEPARTMENT TEAM, STEPHANIE BAKER. SO I'M HAPPY TO ANNOUNCE SHE ACTUALLY JUST GOT PROMOTED TO A HIGHER LEVEL ROLE IN ANOTHER DEPARTMENT. SO WE'RE HAPPY FOR HER. WE'LL MISS HER, BUT WE'RE HAPPY FOR HER. BRAD ROSEN, THE ASSISTANT DIRECTOR OF FINANCE, MEHRNOOSH JAMSHIDI, WHO I THINK IS RIGHT IN THE FRONT ROW OVER THERE, THE FINANCE MANAGER LABEL, THE REVENUE AND OPERATIONS MANAGER, AND ELSIE KOYAMA, THE SENIOR ACCOUNTANT. SO I'M GENERALLY THANKFUL. I'M GENUINELY THANKFUL AND GRATEFUL FOR ALL THE HARD WORK OF EVERYONE THERE, AND WE CERTAINLY COULD NOT HAVE DONE IT WITHOUT THEM. ALSO DEPARTMENT HEADS. SO THERE'S A HUGE EFFORT, HUGE PULL BY EACH DEPARTMENT FOR EACH OF THEIR INDIVIDUAL EFFORTS IN AREAS, AND IT'S SUCH A GREAT GROUP, AND IT'S SUCH AN ENGAGED GROUP THAT DEEPLY UNDERSTANDS THEIR OPERATIONS AND THEIR THOUGHTFUL INPUT. AND AGAIN, THEY'RE MINDFUL REQUESTS GOING FORWARD. AND THE BUDGET REVIEW COMMITTEE BUDGET REVIEW COMMITTEE MET FOR FOUR WEDNESDAYS OUT OF FIVE. THERE'S SOME VERY LONG NIGHTS HERE. I THINK ONE OF THEM, WE WENT FOR HOURS, A LITTLE OVER FOUR HOURS. SO IT MAKES FOR A LONG DAYS. BUT THEY'RE VERY DEDICATED AND HIGHLY ENGAGED INDIVIDUALS. AND THEN LASTLY, I KIND OF FLIPPED THE ORDER OF THESE IS WE DID HAVE SEVERAL MAJOR ACCOMPLISHMENTS THAT WERE KIND OF SPEARHEADED BY THE FINANCE DEPARTMENT THIS YEAR, WHICH WE HAVEN'T DONE IN SOME TIME. SO AGAIN, THAT WATER AND SEWER COST OF SERVICE STUDY, WE HAVEN'T LOOKED COMPREHENSIVELY AT RATES IN A NUMBER OF YEARS.

SO THAT WAS A HUGE PULL IN GETTING THOSE BROUGHT FORWARD IN JANUARY. AND WE APPRECIATE THE SUPPORT OF COUNCIL, CERTAINLY IN GETTING THOSE ADOPTED, THE CITY WIDE COST ALLOCATION PLAN COMPLETION AND IMPLEMENTATION. IT SOUNDS SIMPLE JUST TO IMPLEMENT IT, BUT IT WAS A HUGE SHIFT IN HOW WE PRESENT THE BUDGET AND GET THOSE IN THERE. SO IT WAS IT WAS NO SMALL TASK. AND THERE'S A REASON WE HAVEN'T DONE IT IN ALMOST 20 YEARS FOR A COMPREHENSIVE UPDATE. SO HOPEFULLY WE DON'T DO IT AGAIN IN THE NEXT THREE YEARS, BUT MAYBE 5 TO 7 YEARS WOULD BE GOOD. THE CITY WIDE FEE UPDATE AND STUDY, WHICH I MENTIONED BEFORE, THE LONG RANGE FORECAST, JUST ONGOING WORK THROUGH ANNUAL AUDITS. AND THEN AGAIN,

[00:45:02]

GOOD EVENING, MAYOR, DEPUTY MAYOR AND COUNCIL MEMBERS. I'M GOING TO GIVE AN OVERVIEW OF THE PROPOSED CAPITAL IMPROVEMENT PROGRAM BUDGET FOR THIS COMING FISCAL YEAR 2627, AND A BRIEF UPDATE OF SOME CURRENT CIP PROJECTS. THE PURPOSE OF THE CAPITAL IMPROVEMENT PROGRAM IS TO PLAN AND IMPLEMENT THE CAPITAL IMPROVEMENTS THAT THE CITY COUNCIL DETERMINES TO BE MOST IMPORTANT FOR MAINTAINING THE CITY'S INFRASTRUCTURE AND LONG TERM QUALITY OF LIFE FOR THE COMMUNITY OF POWAY. HOWEVER, BEFORE DIVING INTO THE UPCOMING FISCAL YEAR BUDGET, I'D LIKE TO TAKE A LOOK BACK AT THE PROJECTS THAT WERE COMPLETED IN THE CURRENT FISCAL YEAR. BUT RATHER THAN JUST READ THROUGH THIS LIST, I'M GOING TO SHOW YOU SOME PICTURES OF THE COMPLETED PROJECTS. THE R4 AND R7 RESERVOIRS WERE IDENTIFIED AS REQUIRING REHABILITATION IN THE WATER DISTRIBUTION SYSTEM, MAINTENANCE AND REHABILITATION ASSESSMENT RESERVOIR R4 RECEIVED A NEW EXTERIOR COATING, NEW VENTS, UPDATED FALL RESTRAINT SYSTEMS, AND A NEW LIQUID LEVEL INDICATOR RESERVOIR. R7 RECEIVED A NEW INTERIOR COATING. ADDITIONAL VENT ROOF RAFTER REPAIRS, UPDATED FALL RESTRAINT SYSTEMS, INTEGRATED OVERFLOW AIR GAP, AND A NEW CATHODIC PROTECTION SYSTEM. THE CITY HALL CHILLER REPLACEMENT PROJECT REMOVED THE EXISTING 17 YEAR OLD CHILLER UNIT, LOCATED BEHIND COUNCIL CHAMBERS, AND INSTALLED A NEW UNIT. THE PRIOR SYSTEM HAD REACHED THE END OF ITS USEFUL LIFE AND WAS OPERATING AT LIMITED CAPACITY DUE TO A FAILED COMPRESSOR. THE COMPLETED PROJECT RESTORED FULL COOLING CAPACITY TO CITY HALL AND THE COUNCIL CHAMBERS, IMPROVED ENERGY EFFICIENCY AND REDUCED FUTURE MAINTENANCE NEEDS. THE MAIN CIRCULATION PUMP AT THE COMMUNITY PARK SWIM CENTER WAS REPLACED, AND THE FILTER MEDIA IN ALL SEVEN POOL FILTERS WAS ALSO REPLACED, WHICH WILL KEEP THE POOL WATER CLEAN FOR THE LIFESPAN OF THE FILTERS. IN THE CURRENT FISCAL YEAR, 11 WATER VALVES WERE REPLACED, WHICH WERE IDENTIFIED AS BEING AT THE END OF THEIR RELIABLE SERVICE LIFE. THIS PROJECT CONSTRUCTED PEDESTRIAN IMPROVEMENTS TO CREATE AN ACCESSIBLE PATH CONNECTING THE BUCKLEY STREET SIDEWALK TO COMMUNITY PARK. THE ANNUAL STREET MAINTENANCE PROGRAM UTILIZED A NUMBER OF TREATMENT STRATEGIES IN ZONE EIGHT, INCLUDING CRACK SEAL, SLURRY SEAL, CAPE SEAL, AND HOT MIX ASPHALT CONCRETE PATCHING. I'LL SHOW THE STREET MAINTENANCE ZONE MAP IN A FUTURE SLIDE. SO ALL TOLD, APPROXIMATELY 5,000,000FT■!S OF PAVEMENT WAS RESURFACED IN ZONE EIGHT. AS PART OF THIS ANNUAL PROGRAM. AFTER THE STREET MAINTENANCE IS COMPLETED, THE ANNUAL CITYWIDE STRIPING PROJECT REPLACED PAVEMENT STRIPING AND MARKINGS ON ALL THE STREETS THAT WERE RESURFACED IN ZONE EIGHT. THE PROJECT ALSO REFRESHED FADED PAVEMENT STRIPING AND MARKINGS IN MAINTENANCE ZONES TWO, FOUR AND SIX EFFECTIVELY RESTRIPING HALF THE CITY. THIS NEIGHBORHOOD SIDEWALK PROJECT INSTALLED APPROXIMATELY 4000FT■S OF SIDEWALK NEAR GARDEN ROAD ELEMENTARY SCHOOL, ALONG WITH NEW PEDESTRIAN ACCESS RAMPS, CURB AND GUTTER. AS PART OF THE CITY'S ANNUAL STORM DRAIN REPAIR PROGRAM. THIS DETERIORATED STORM DRAIN INLET WAS REPLACED AT TAUNTON ROAD. AND AS PART OF THE SAME DRAINAGE REPAIR PROGRAM. THIS CORRUGATED METAL STORM DRAIN PIPE WAS REPAIRED WITH A CURED IN PLACE RESIN LINING. THIS PROJECT REMOVED ABOUT 1200 LINEAR FEET OF DETERIORATED CONCRETE FENCING ALONG MIDLAND ROAD AND INSTALLED A NEW PRESSURE TREATED WOOD FENCE TO MATCH THE EXISTING FENCING AT OLD POWAY PARK. AND YOU CAN SEE IN THE PICTURE ON THE RIGHT THAT BLACK VINYL COATED CHAIN LINK MESH WAS ALSO INSTALLED ON THE BACK SIDE OF THE FENCE FOR ADDED SAFETY. SO NOW WE'RE MOVING ON TO THE FISCAL YEAR 2627 CAPITAL IMPROVEMENT PROGRAM. A TOTAL OF 42 PROJECTS AND PROGRAMS ARE PROPOSED TO RECEIVE A TOTAL OF $32.3 MILLION IN FUNDING. OF THESE 42 PROJECTS AND PROGRAMS, 20 ARE NEW PROJECTS, WHILE TEN ARE RECURRING OR ANNUAL PROJECTS AND PROGRAMS. THE REMAINING 12 PROJECTS ARE EXISTING PROJECTS THAT ARE RECEIVING ADDITIONAL

[00:50:01]

I'LL TOUCH ON ZONE ONE STREET PROJECT IN THE NEXT SLIDE. THE TWO ADAPTIVE TRAFFIC MANAGEMENT SYSTEM, OR ATMS PROJECTS WILL INSTALL ADVANCED TRAFFIC CONTROL HARDWARE AND SOFTWARE, WHICH WILL ALLOW THE TRAFFIC SIGNALS TO COMMUNICATE WITH EACH OTHER AND ADJUST THE SIGNALS IN REAL TIME. THIS WILL LEAD TO IMPROVED TRAFFIC FLOW AND REDUCE NUMBER OF VEHICLE STOPS. THIS WILL BE A MULTIYEAR, PHASED PROJECT BEGINNING WITH POWAY ROAD THIS YEAR. CURRENTLY, STAFF HAS SELECTED A TRAFFIC ENGINEERING CONSULTANT AND WILL BE BRINGING THAT AGREEMENT TO CITY COUNCIL IN LATE JULY. AND THIS SLIDE IS A MAP OF THE CITY'S PAVEMENT MAINTENANCE ZONES. AS I MENTIONED EARLIER, THE PREVIOUSLY COMPLETED PROJECTS WERE IN ZONE EIGHT COLORED LIGHT PURPLE ON THIS MAP IN THE SOUTHWEST CORNER OF POWAY. ZONE ONE, WHICH IS SHOWN IN PINK AT THE TOP OF THIS MAP, NORTH OF A ROAD, WILL BE RESURFACED THIS SUMMER, WITH THE ASPHALT PATCHING AND OVERLAY TO START IN EARLY JULY. IN THE DRAINAGE CATEGORY, ADDITIONAL FUNDING IS BEING REQUESTED FOR THE ANNUAL STORM PIPE REPLACEMENT PROGRAM AND THE ANNUAL CONCRETE CHANNEL REPAIRS. AN ADDITIONAL $500,000 IS BEING REQUESTED FOR THE COMMUNITY PARK CONCRETE RIBBON DRAIN PROJECT, WHICH I WILL DISCUSS IN A FUTURE SLIDE. AND THIS SLIDE SHOWS BEFORE AND AFTER PICTURES OF AN ONGOING ANNUAL CHANNEL REHABILITATION PROJECT WAS. WHICH IS CURRENTLY IN CONSTRUCTION. THESE CHANNEL REPAIRS HAVE BEEN COMPLETED ADJACENT TO FLORAL AVENUE AND FAIRBURN STREET. AND HERE'S ALSO BEFORE AND AFTER PICTURES.

YOU CAN SEE FULL CHANNEL REPLACEMENT WHICH WAS RECENTLY COMPLETED NEAR ALLBROOK DRIVE.

THIS PROJECT IS EXPECTED TO BE COMPLETED IN JULY. THE COMMUNITY PARK RIBBON DRAIN PROJECT WILL REMOVE THE DETERIORATED CONCRETE SWALE IN RATTLESNAKE CREEK AND INSTALL THREE DROP STRUCTURES TO MANAGE THE FLOW OF WATER AND REDUCE FUTURE EROSION. IN ADDITION, THIS PROJECT WILL STABILIZE THE CREEK BANKS WITH BOULDERS AND NATIVE VEGETATION. THE CITY COUNCIL APPROVED THE CONSULTANT AGREEMENT IN MAY TO MOVE FORWARD WITH DESIGN AND PERMITTING, WHICH WILL CONTINUE THROUGH THIS YEAR. THERE ARE 22 PROJECTS PROPOSED FOR FY 27 FUNDING IN THE PUBLIC FACILITIES CATEGORY. THIS SLIDE ONLY SHOWS THE 14 NEW FACILITIES AND NON-ROUTINE MAINTENANCE PROJECTS. THE OTHER PROJECTS WILL BE DISCUSSED IN A LATER SLIDE. AS YOU CAN SEE, A SIGNIFICANT INVESTMENT IS BEING PROPOSED IN THE COMMUNITY PARK SWIM CENTER. THIS YEAR'S CIP BUDGET PROPOSES TWO PROJECTS TO MAINTAIN THE SWIM CENTER POOL.

ONE WILL REPLACE THE POOL DECK AND PLASTER, AND THE OTHER WILL REPLACE THE POOL HEATER, WHICH IS NEARING THE END OF ITS USEFUL LIFE. THE NEW POOL HEATER WILL HAVE A SIGNIFICANTLY LONGER LIFESPAN, LOWER ANNUAL MAINTENANCE COSTS AND A MUCH HIGHER ENERGY EFFICIENCY. THESE IMPROVEMENTS ARE NECESSARY TO CONTINUE TO SERVE THE NEARLY 83,000 POOL ENTRIES, WHICH WERE COUNTED IN 2025. THIS PROJECT WILL REPLACE THE WOOD BEAMS ON THE PEDESTRIAN BRIDGE LOCATED NEAR THE BOXCAR AT OLD POWAY PARK, AS A PRIMARY ACCESS POINT BETWEEN THE LOWER AND UPPER AREAS OF THE PARK, THIS BRIDGE EXPERIENCES HEAVY PEDESTRIAN USE. THIS PROJECT WILL PROVIDE IMPROVEMENTS TO DIRT PARKING LOTS NEAR OLD POWAY PARK. THIS PARK ATTRACTS HUNDREDS OF VISITORS EACH WEEKEND AND DURING SPECIAL EVENTS, PLACING

[00:55:05]

THIS PROJECT INCLUDES THE DESIGN AND CONSTRUCTION OF A STANDALONE RESTROOM BUILDING ADJACENT TO THE EXISTING BOCCE COURTS. THE DESIGN IS UNDERWAY AND WE'RE EXPECTING COMPLETION OF THE DESIGN BY THE END OF THE SUMMER. THE OLD POWAY PARK BOARDWALK REPLACEMENT IS AN EXISTING PROJECT THAT WILL REPLACE THE EXISTING WOOD BOARDWALK WITHIN OLD POWAY PARK.

CURRENTLY, STAFF IS LOOKING INTO DIFFERENT MATERIALS TO EVALUATE THEIR DURABILITY, ESTHETIC APPEAL AND COST. STAFF IS ANTICIPATING SELECTING A PREFERRED MATERIAL BY THE END OF THE SUMMER. THERE ARE NINE PROJECTS PROPOSED TO RECEIVE FY 27 FUNDS IN THE WATER CATEGORY.

TOTAL FUNDING BEING REQUESTED FOR THE WATER PROJECTS IS JUST OVER 13.8 MILLION. HOWEVER, THE MAJORITY OF THAT IS FOR ONE PROJECT. THE TREATED WATER CONNECTION AND REDUNDANT PIPELINE. I'LL GO INTO MORE DETAIL ON THAT PROJECT IN A LATER SLIDE. FIRST, HERE'S A LIST OF FIVE WATER PROJECTS THAT WILL NOT RECEIVE ADDITIONAL FUNDING IN FY 27.

THE EMERGENCY INTERCONNECT NUMBER TWO AND POWAY ROAD IS BEING DESIGNED. THE WATER MASTER PLAN UPDATE IS BEING DEVELOPED THROUGHOUT THE REST OF THIS YEAR, AND THE CLEARWELL REPLACEMENT PROJECT IS NEARLY COMPLETE. THE POWAY WATER INFRASTRUCTURE IMPROVEMENT PROGRAM IS A THREE PHASE PROGRAM TO IMPROVE, IMPROVE THE RELIABILITY, REDUNDANCY, AND RESILIENCY OF THE CITY'S POTABLE WATER SYSTEM. THE PROGRAM CONSISTS OF THE CLEARWELL BYPASS PROJECT, WHICH IS IN OPERATION. THE CLEARWELL REPLACEMENT PROJECT, WHICH IS NEARLY COMPLETE, AND THE TREATED WATER FACILITIES AND PIPELINE, WHICH IS CURRENTLY IN THE DESIGN PHASE. THE THIRD PHASE OF THE PROGRAM IS THE TREATED WATER FACILITIES, WHICH PROVIDES THE CITY WITH A REDUNDANT WATER SUPPLY. THE PROJECT WILL ESTABLISH A CONNECTION BETWEEN THE CITY OF POWAY AND THE RAMONA MUNICIPAL WATER DISTRICT. THIS PROJECT IS CURRENTLY IN THE DESIGN PHASE AND IS EXPECTED TO AWARD A CONSTRUCTION CONTRACT IN EARLY 2027. THERE ARE TWO SEWER PROJECTS THAT ARE PROPOSED TO RECEIVE FUNDING IN FY 27. THEY ARE THE ANNUAL SEWER MANHOLE REHABILITATION AND ANNUAL SEWER LINE REPAIR PROJECTS. THESE

[01:00:01]

AND THERE ARE FIVE SEWER PROJECTS WITH NO ADDITIONAL FUNDING REQUESTED IN FY 27. THE BUTTERFIELD TRAIL SEWER PROJECT IS NEARING DESIGN COMPLETION, WITH CONSTRUCTION BIDDING ANTICIPATED FOR THIS SUMMER. THE SEWER MASTER PLAN UPDATE IS CURRENTLY BEING DEVELOPED AND IS EXPECTED TO BE COMPLETED IN EARLY 2027. SO TO SUMMARIZE, THIS SLIDE SHOWS THE BREAKDOWN OF PROPOSED FUNDING BY CATEGORY AND THE TOTAL PROPOSED FISCAL YEAR 2627 BUDGET OF $32.3 MILLION. THIS CONCLUDES MY PRESENTATION. THANK YOU BOTH A LOT TO DIGEST THERE. I HAVE JUST ONE SPEAKER TONIGHT. THAT'S GOING TO BE ALEC OTTINGER, THE BUDGET REVIEW COMMITTEE VICE CHAIR HERE TO LET US HEAR THEIR THOUGHTS. ALEC, WELCOME. GOOD TO SEE YOU.

YOU TOO. ALL RIGHT. IS THIS ON? YEP. PERFECT. THANK YOU. MAYOR VOSS AND MEMBERS OF THE CITY COUNCIL FOR THE OPPORTUNITY TO PRESENT THE BUDGET REVIEW COMMITTEE'S RECOMMENDATIONS TODAY. BEFORE MOVING INTO RECOMMENDATIONS, IT'S IMPORTANT TO RECOGNIZE SEVERAL WINS FOR THE CITY OF POWAY. THE PROPOSED FISCAL YEAR 2627 BUDGET IS NOT ONLY BALANCED, BUT FULLY FUNDS ALL CURRENT OPERATIONS AND PROGRAMS. THE BRC IS ALSO PLEASED TO SEE THAT A FEW RECOMMENDATIONS FROM LAST YEAR WERE INCORPORATED INTO THE BUDGET PROCESS, TO INCLUDE THE COMPLETION AND UPDATE OF THE CITY'S COST ALLOCATION PLAN AND THE COMPLETION OF A TEN YEAR GENERAL FUND FORECAST. THE CITY HAS ALSO PAID OFF THE 2012 REFUNDING CERTIFICATE OF PARTICIPATION DEBT EARLY, AND IS ACTIVELY WORKING TO UPDATE VARIOUS CITY IN LIEU IMPACT AND MITIGATION FEES. ADDITIONALLY, THE CITY COMPLETED A MUCH ANTICIPATED CITYWIDE USER FEE STUDY UPDATE TO ALIGN SERVICE COSTS WITH REVENUE RECOVERY EFFORTS. IN TERMS OF RECOMMENDATIONS, THE CITY OF POWYS ONCE AGAIN THE ENVY OF OUR NEIGHBORING CITIES AS WE RECOMMEND FUNDING FOR THE NEW REQUESTS TO INCLUDE AN INCREASE IN SIX NEW FULL TIME EMPLOYEES AND FOUR EMPLOYEE RECLASSIFICATIONS SUBMITTED FOR THE NEXT FISCAL YEAR. THE ADDITION OF THE PRINCIPAL FINANCIAL ANALYST POSITION WITHIN THE FINANCE DEPARTMENT IS OF PARTICULAR INTEREST TO THE BRC. THE COMMITTEE STRONGLY SUPPORTS THE SUCCESSION PLANNING INTENT BEHIND THIS ROLE, ESPECIALLY GIVEN ITS CORE RESPONSIBILITY OF SERVING AS THE CITY'S PURCHASING AGENT. THE CITY'S GENERAL FUND RESERVE POLICY CONTINUES TO BE MET WITH THE HIGHEST RESERVE LEVELS, 45% IN SAN DIEGO COUNTY. THIS REFLECTS THE LONG TERM FINANCIAL STABILITY AND RESPONSIBLE PLANNING FROM YEARS PAST. THE BRC IS SUPPORTIVE OF ALL PROGRAMS AND PROJECTS BEING PROPOSED FOR FINANCE, COMMUNITY SERVICES, PUBLIC WORKS AND FIRE TO INCLUDE THE FIRE ENGINE E 91 REPLACEMENT, WHICH IS INCLUDED IN THE GENERAL FUND OPERATING BUDGET. NEW ITEMS REQUEST OF 1.8 MILLION. WE ARE ALSO SUPPORTIVE OF THE 42 CAPITAL IMPROVEMENT PROGRAM PROJECT REQUESTS TOTALING 32.8 MILLION. WE ALSO HAVE A RECOMMENDATIONS ON WAYS TO CONTINUE TO IMPROVE TRANSPARENCY OF THE BUDGET DOCUMENTS. THE ITEMS BELOW ARE A CARRYOVER FROM LAST YEAR'S RECOMMENDATIONS, THE FIRST BEING AN INDICATOR ON BUDGET RELATED ITEMS THAT ARE UNFUNDED MANDATES, AS THOSE SEEM TO INCREASE OVER TIME TO INCLUDE STATE, FEDERAL, OR GRANT MONEY. THE LINE ITEM IN THE BUDGET WITH AN IDENTIFIER TO DIFFERENTIATE THEM FROM OTHER REVENUES. AND ALSO DEVELOPING A BUDGET IN BRIEF DOCUMENT AS AN EDUCATIONAL TOOL FOR RESIDENTS WANTING TO EASILY UNDERSTAND THE CITY BUDGET AND SEE HOW THEIR TAX DOLLARS ARE ENRICHING THEIR LIVES. THANK YOU SO MUCH FOR THE OPPORTUNITY TO SERVE THE COMMUNITY. AS BRC MEMBERS, WE FEEL PRIVILEGED TO BE ABLE TO SERVE ON THIS COMMITTEE AND RESIDE IN SUCH A WELL-RUN CITY WHO PRIORITIZES COMMUNITY ENGAGEMENT, FISCAL RESPONSIBILITY, QUALITY OF LIFE, AND PUBLIC SAFETY. A CITY THAT CREATES OPPORTUNITIES FOR RESIDENTS SUCH AS US TO ADD VALUE TO THE CRITICAL CITY BUDGETING PROCESS, IS A WELL-RUN CITY. IN ADDITION TO RECOGNIZING CITY MANAGER CHRIS HAZELTINE AND ASSISTANT CITY MANAGER TRACY STEVENS, WE'D LIKE TO THANK DIRECTOR OF FINANCE CRAIG SCHMOLLINGER FOR THE COMPREHENSIVE PROCESS IN ALL CITY DEPARTMENT DIRECTORS FOR THE OUTSTANDING WORK THEY DO. THANK YOU VERY MUCH. THANK YOU ALEC. THAT CONCLUDES OUR SPEAKERS AND I WILL NOW CLOSE THE PUBLIC HEARING. AND I'M GOING TO START THINGS OFF TONIGHT. SO I DON'T HAVE TO GO AFTER PETER WHO COVERS EVERYTHING AND LEAVE ME SOMETHING TO SAY FIRST. THANK YOU, CRAIG AND THE ENTIRE FINANCE TEAM AND EVERY DEPARTMENT DIRECTOR WHO PUT THIS DOCUMENT TOGETHER. I'VE BEEN DOING THIS LONG ENOUGH TO KNOW THAT A BUDGET ISN'T JUST

[01:05:05]

THEY'RE CITIES THAT MADE DIFFICULT CHOICES OVER TIME OR FACE DIFFERENT CIRCUMSTANCES.

AND THEY NOW FIND THEMSELVES IN A DIFFICULT POSITION. POWAY IS NOT IN THAT POSITION. TONIGHT, WE'RE ADDING STAFF. WE'RE INVESTING IN PARKS AND POOLS AND PERFORMING ARTS, DRESSING UP DOWNTOWN, COMPLETING THE LARGEST CAPITAL IMPROVEMENT PROJECT IN OUR CITY'S HISTORY.

AND WE'RE DOING ALL OF THAT WITHOUT RAISING TAXES, WITHOUT CUTTING SERVICES, AND WITHOUT ASKING OUR RESIDENTS FOR ANYTHING EXCEPT FOR THEIR CONTINUED TRUST. AND IN FACT, WHILE EL CAJON IS REDUCING FIRE STATION STAFFING, POLICE FIRE BUDGETS GOING UP FROM 17.5 TO 18.8 MILLION. WE'RE INVESTING IN PUBLIC SAFETY, NOT RETREATING FROM IT. THAT'S NOT AN AUTOMATIC. IT HAPPENS BECAUSE OF DECISIONS MADE AT THIS DAIS. SOME DECISIONS MADE

[01:10:04]

THANK YOU, MAYOR VOSS. I THINK WE'RE LOOKING AT BUDGET PAGE TWO IN THE PACKET THERE WITH A GENERAL FUND AT THE TOP. WHAT YOU'RE SEEING THERE FROM THE CURRENT YEAR, FISCAL YEAR 25, 26, PROJECTED NUMBER AND THE PROPOSED FISCAL YEAR 2627 IS DIRECTLY REFLECTIVE OF THE NEW COST ALLOCATION PLAN. SO THIS IS STRICTLY A PRESENTMENT CHANGE. IT'S NOT A TRIPLE INCREASE IN THE FINANCE DEPARTMENT OR A ONE AND A HALF TIMES 150% INCREASE IN LEGISLATIVE AND ADMIN. IT'S BEARING THE FULL COST OF THOSE GENERAL FUND DEPARTMENTS AND REFLECTING THEM THERE IN THAT TOP LINE NUMBER. BUT IF YOU LOOK DOWN FURTHER, YOU'LL SEE A SUBNOTE THREE IN A NEW LINE LABELED INDIRECT COST IN OUT, WHICH IS THE DIRECT RECOVERY OF THOSE COSTS FROM WATER, SEWER, DRAINAGE, AND SO ON. SO WHEN YOU NET THOSE OUT, IT HAS ALMOST AN INCONSEQUENTIAL INCREASE OF ABOUT A CPI INFLATOR INCREASE YEAR OVER YEAR. SO THAT'S JUST A PRESENTMENT ISSUE. IT'S NOT A TRIPLE FOLD INCREASE. BUT THAT IS A GREAT POINT IN OBSERVATION THERE. SO SO THE COST DIDN'T CHANGE. IT'S JUST THE WAY THAT WE'RE SHOWING THEM. THAT WAS RECOMMENDED BY A PROFESSIONAL CONSULTANT. ESSENTIALLY GREATER TRANSPARENCY. YES. THAT WAS THEIR RECOMMENDATION IN LINE WITH INDUSTRY BEST PRACTICE TO REFLECT THE COST RECOVERY IN THIS MANNER. YES. THANKS. MOVING ON. OUR LAW ENFORCEMENT SERVICES CONTRACT WITH SAN DIEGO COUNTY SHERIFF'S OFFICE EXPIRES AT THE END OF THIS YEAR AT 16.75 MILLION. IT'S THE SECOND LARGEST EXPENDITURE IN OUR GENERAL FUND. I KNOW NEGOTIATIONS ARE CURRENTLY UNDERWAY, CHRIS OR CRAIG, I'M NOT ASKING YOU TO TO TALK ABOUT NEGOTIATING POSITIONS, BUT I DO WANT THE PUBLIC TO UNDERSTAND THAT WE'VE MODELED THIS RISK.

SO IF YOU COULD SPEAK BRIEFLY TO HOW THE TEN YEAR GENERAL FUND FORECAST ACCOUNTS FOR SCENARIO SCENARIOS INVOLVING LAW ENFORCEMENT COST INCREASES AND WHETHER THE CITY'S FINANCIAL POSITION CAN ABSORB A RANGE OF OUTCOMES WITHOUT PUTTING CORE SERVICES AT RISK.

YEAH, WE FEEL VERY COMFORTABLE WE'LL BE ABLE TO TO HANDLE WHATEVER ADJUSTMENT COMES OUR WAY. CRAIG MENTIONED IT EARLIER JUST HOW IMPORTANT THE TEN YEAR FORECAST IS. WE'VE GOT A AN INCREASE TO THE BUDGET PROJECTED 4.25%, I BELIEVE IS WHAT WE HAVE IN THERE RIGHT NOW.

DO I THINK THAT'S ENOUGH? NOT SURE. NOT SURE. MIGHT MIGHT BE LOW. BUT THAT'S WHAT WE HAVE IN THERE RIGHT NOW. AND THE THE TEN YEAR FORECAST INFORMS EVERYTHING THAT WE DO. SO WHEN WE GET FARTHER ALONG IN THE NEGOTIATIONS, WE'LL BE ABLE TO MODEL THAT IN OUR TEN YEAR FORECAST TO SEE WHAT THE IMPACT IS. BUT WE FEEL VERY, VERY COMFORTABLE AND VERY, VERY CONFIDENT THAT WE'RE WELL POSITIONED TO TO MANAGE THE INEVITABLE INCREASE IN THAT CONTRACT COMING FORWARD. THANKS. I JUST I THINK IT'S IMPORTANT THAT THE THE PUBLIC REALIZE THAT WE SEE IT AND WE'VE PLANNED FOR IT. STAFFING. WE'RE ADDING SIX FULL TIME EQUIVALENT POSITIONS. I'VE READ ALL THE JUSTIFICATIONS. EVERY ONE OF THEM SOLVES A SPECIFIC PROBLEM.

THE IT MANAGER POSITION EXISTS BECAUSE OF OUR ASSISTANT DIRECTOR OF FINANCE FOR BUSINESS OPERATIONS, BRAD ROSEN, WHO WASN'T FEELING GREAT. AND SO WE GOT HIM OUT OF HERE. HE SERVED THE CITY WITH DISTINCTION. HE'S TOLD US HE PLANS TO RETIRE NEXT YEAR.

WE'RE HIRING A SUCCESSOR NOW SO THAT THERE'S TIME TO TRAIN TO OVERLAP AND TRANSFER INSTITUTIONAL KNOWLEDGE. THAT'S CRITICAL. THAT'S NOT GOVERNMENT GROWTH. THAT'S GOVERNMENT CONTINUITY. THE PRINCIPAL PLANNER EXISTS BECAUSE THE STATE OF CALIFORNIA KEEPS PASSING HOUSING LAWS THAT GENERATE MANDATORY CODE AMENDMENTS, AND OUR CURRENT STAFF CAN'T KEEP UP WITH THE VOLUME. THAT POSITION IS NOT OPTIONAL. IT'S A RESPONSE TO SACRAMENTO PARKS. MAINTENANCE WORKER EXISTS BECAUSE WE WANT SOMEBODY ON DUTY ON WEEKENDS TO SUPPORT THE FARMERS MARKET, CAMP OUTS, FISHING EVENTS, HALLOWEEN AT OLD POWAY PARK, THE WINTER FESTIVAL. THESE ARE EVENTS OUR COMMUNITY LOVES. WE NEED TO STAFF THEM PROPERLY AND

[01:15:01]

WE SEE THEM AND WE PLAN FOR THEM. WE'RE ONE OF THE LEANEST CITY GOVERNMENTS IN CALIFORNIA RELATIVE TO THE POPULATION WE SERVE. WE'VE ALWAYS BELIEVED THAT THE MONEY WE DON'T SPEND UNNECESSARILY IS MONEY THAT STAYS IN THE POCKETS OF THE PEOPLE WHO EARNED IT. THIS BUDGET HONORS THAT. IT INVESTS WHERE INVESTMENT IS DUE. IT PROTECTS WHAT WE'VE BUILT, AND IT LEAVES THE CITY IN GOOD HANDS, NOT JUST FOR THE PEOPLE IN THIS ROOM TONIGHT, BUT FOR THE ONES WHO WILL SIT IN ALL OF THESE SEATS LONG AFTER WE'RE GONE. SO I AM PROUD TO SUPPORT THIS BUDGET, AND I WOULD MOVE TO ADOPT IT. THAT'S ALL I'VE GOT. DEPUTY MAYOR MAIDA, YOUR TURN. JONATHAN. I LOVE SEEING THE BEFORE AND AFTER PICTURES, AND IT'S JUST GREAT TO SEE OUR TAX DOLLARS AT WORK. I WOULD LIKE TO THANK THE BUDGET TEAM FOR PULLING ALL OF THIS TOGETHER AND DOING THE HARD WORK FOR US AND THE BRC, FOR HELPING TO REVIEW IT AND MAKE IT A LITTLE BETTER. AND EVERY STAFF MEMBER WHO IMPLEMENTS THE BUDGET THROUGHOUT THE YEAR TO KEEP OUR CITY CLEAN AND PRETTY. I APPRECIATE THAT WE HAVE A BALANCED BUDGET THAT IS STRONG ENOUGH TO WITHSTAND THE FINANCIAL STORMS OF INFLATION AND UNANTICIPATED LEGAL FEES, WHILE STILL PAYING OFF OUR DEBTS. MAYOR VOSS MENTIONED SOME OF THE OTHER CITIES THAT ARE STRUGGLING AROUND US. ANOTHER ONE IS THE CITY OF SAN DIEGO, AND THEY'RE STRUGGLING TO FUND THEIR FIREFIGHTERS, EVEN, WHO ARE ALREADY SOME OF THE MOST UNDERPAID FIRST RESPONDERS IN THE STATE. AND FINALLY, MY CONSTITUENTS WILL BE HAPPY TO SEE THAT. INCLUDED IN THE BUDGET IS SHADE FOR GARDEN ROAD PARK. COUNCIL MEMBER PICUS. WELL, FIRST OF ALL, I'M GRATEFUL I GET TO GO BEFORE PETER. SO BUT I THINK CRAIG COVERED MOST OF THE POINTS I MADE. SO THANK YOU FOR THAT TOO. AND YOU KNOW, MAYOR VOSS COVERED A LOT OF THE OTHER POINTS. SO I'LL SUMMARIZE THIS REAL QUICK. ONE, I FIND IT INTERESTING THAT ALTHOUGH THIS IS THE MOST IMPORTANT VOTE OF THE YEAR, IT'S ALSO THE LAST VOTE OF THE FISCAL YEAR WE'RE TAKING. SO WE'VE GOT THAT. AND YEAH, IT'S AN AWESOME BUDGET. A FEW HIGHLIGHTS I HAD WAS, AGAIN, UNLIKE, YOU KNOW, OTHER CITIES, WE'RE NOT DOING ANY ACCOUNTING TRICKS TO BALANCE OUR BUDGET THIS TIME AROUND OR EVER. WE HAVE THE LARGEST RESERVE PERCENTAGES IN THE COUNTY. I THINK SEVERAL PEOPLE MENTIONED THAT AND VERY LITTLE DEBT. AND AGAIN, WE'VE RETIRED ALL KINDS OF BONDS. THE ONLY THING THAT'S OUTSTANDING AT THE MOMENT ARE TWO WATER BONDS AND THE AS YOU MENTIONED, THOSE PENSION OBLIGATION BONDS THAT WE PRETTY MUCH WE PRE PRE FINANCED THEM.

SO WE DIDN'T HAVE TO CONTINUALLY PAY THEM EACH YEAR. SO THAT WAS GOOD ROBUST MAINTENANCE AND CAPITAL IMPROVEMENT. AND AGAIN SHERIFF FIRE STREETS PARKS SENIOR CENTER PCPA ALL COVERED ADEQUATELY PLUS ALL OUR CAPITAL IMPROVEMENTS. AND WE'RE BUYING ANOTHER FIRE TRUCK FOR $1.8 MILLION WITH CASH. AND SO THAT'S A I THINK THAT'S REALLY IMPRESSIVE. AND THAT'S PART OF OUR CITY'S PHILOSOPHY THAT THE MINUTE WE PUT A PIECE OF CAPITAL EQUIPMENT INTO SERVICE, WE START SAVING UP TO REPLACE IT, KNOWING THAT BECAUSE WE KNOW IT HAS TO BE REPLACED. AND BECAUSE OF THAT, WE HAVE THAT $1.8 MILLION ALL READY TO GO.

[01:20:02]

SO IF SOMEBODY CAN, YOU KNOW, WHIP ONE OF THOSE UP, THAT WOULD BE NICE TO PUBLISH. I'D APPRECIATE THAT GREATLY. OTHER THAN THAT, I THINK MY COMMENTS ARE DONE BECAUSE EVERYONE SAID WHAT I WANTED TO SAY, BUT I WILL SECOND IT IF YOU NEED A SECOND. SO THAT'S ALL WE'LL TAKE THAT SECOND. COUNCIL MEMBER DORFF, SEE, THIS IS PUNISHMENT FOR TALKING TOO LONG, I THINK. ALL RIGHT. EXCELLENT PRESENTATION THERE, CRAIG AND JOHN AND ALEC, WHO'S NOT HERE.

VERY COOL. ACTUALLY, I WAS JUST LOOKING AT THAT AND THINKING THAT THE HITS JUST KEEP ON COMING. I MEAN, I REMEMBER JUST ONE THING AFTER ANOTHER, YOU KNOW, WITH THE WATER RATES, COST OF SERVICE STUDY, THE CAP, INTERNAL FEE STUDY, WHOLE NINE YARDS, AND NOW WE'VE GOT THE BUDGET. SO VERY COOL. AND WHEN I SEE THIS BUDGET, I REALLY THINK OF IT, YOU KNOW, AS A FOCUS ON THE FUNDAMENTALS. YOU KNOW, THIS IS WHAT THIS CITY HAS ALWAYS BEEN ABOUT YEAR AFTER YEAR THROUGH THE ELECTION CYCLES, THROUGH THE ECONOMIC CYCLES, IS REALLY KEEPING THAT FOCUS, YOU KNOW, ON PUBLIC SAFETY, ON INFRASTRUCTURE AND ON COMMUNITY SERVICES. AND IF YOU GET THOSE THREE THINGS RIGHT, EVERYTHING ELSE FOLLOWS. AND IF YOU LOSE SIGHT OF THEM, EVEN ONE OF THEM, AND EVEN FOR A MOMENT, AT BEST, YOU'RE GOING TO SPEND THE NEXT DECADE OR SO TRYING TO CLAW YOUR WAY BACK OUT OF THAT HOLE. SO THE BUDGET IS PROOF, I THINK, HERE THAT WE'VE BEEN MAINTAINING THAT FOCUS, AND IT DIDN'T HAPPEN BY ACCIDENT. YOU KNOW, ACTUALLY, I WAS LOOKING AT THIS AND I'M NOT I HAVEN'T BEEN HERE AS LONG AS STEVE AND I APPRECIATE HIS PERSPECTIVE THERE. I'VE BEEN DOING THIS FOR LIKE SEVEN YEARS. YOU KNOW, IT'S LIKE I WAS THREE ON THE BUDGET REVIEW COMMITTEE AND ALMOST FOUR YEARS. IT'S ALMOST SEVEN YEARS. AND THE LESSON IS REALLY SIMPLE. THE FUNDAMENTALS ARE NEVER FINISHED. YOU KNOW, YOU HAVE TO KEEP AT THEM TO GET THEM RIGHT. AND I THINK WE'VE GOT THEM RIGHT HERE. YOU KNOW WE'RE BALANCED. WE HAVE THE LARGEST, YOU KNOW, RESERVE MARGIN ANYWHERE. AND THAT RESERVE EXISTS TO MAKE SURE THAT IF TIMES GET TOUGH, YOU KNOW, WE CAN TAKE CARE OF OUR OWN. YOU GUYS REMEMBER THE FEMA GRANT. YOU KNOW, THAT WAS A THING TO, YOU KNOW, KEEP TWIN PEAKS BECOMING A THREE MILE LONG CREMATORIUM IN A FIRE. YOU KNOW, THAT TOOK FOUR YEARS FOR THEM TO GET FUNDED. AND SO, YOU KNOW, WE NEED TO BE ABLE TO CARRY THAT. AND AT THE SAME TIME, BECAUSE OF THE DIVIDENDS THAT COME FROM DECADES OF DISCIPLINE, FOCUS, SAY THAT TEN TIMES FAST, WE'RE UPGRADING OUR FIRE DEPARTMENT EQUIPMENT, WE'RE ADDING NEW RECREATION FACILITIES, AS MENTIONED, AND WE'RE INVESTING INTO THE COMMUNITY PARKS AND PCPA, EVEN MAKING THEM EVEN BETTER. AND BUT MORE IMPORTANTLY, WE'RE FULLY FUNDING ALL OF OUR PRIORITIES. AND NONE OF THAT HAPPENS WITHOUT THE RIGHT PEOPLE AT EVERY LEVEL. AND I'VE GOT TO START WITH THE STAFF HERE, BECAUSE THE BIGGEST DRIVER OF OUR SUCCESS IS THE ALIGNMENT BETWEEN THE STAFF AND THE BOARD'S POLICIES. WE'VE ADDED 5 OR 6 POSITIONS TO THIS BUDGET, BUT WE'RE STILL INTENTIONALLY LEAN, YOU KNOW, AND IT'S THAT CULTURE OF LEANNESS THAT ATTRACTS THE RIGHT KIND OF PERSON TO THE JOB, THE JACK OF ALL TRADES, YOU KNOW, THE PERSON WHO THINKS FAST, TAKES OWNERSHIP QUICKER ON THEIR FEET, AND THEY SORT OF CARRIES REAL RESPONSIBILITY AND SOME REAL AUTONOMY THERE. AND, YOU KNOW, I SEE THAT, YOU KNOW, WHEN CONSTITUENTS, THEY COME TO ME A LITTLE FRUSTRATED ABOUT SOMETHING, BUT THEY ALWAYS ADD, ALMOST ALWAYS ADD WITHOUT PROMPTING THAT THE STAFF MEMBER SO AND SO, YOU KNOW, THAT I WAS WORKING WITH HAS BEEN FANTASTIC.

YOU KNOW, I HEAR THAT OVER AND OVER. AND I THINK THAT'S A CULTURE, AS I MENTIONED, FROM THE TOP AND THE BOTTOM. BUT YOU KNOW WHAT NEEDS TO HAPPEN, YOU KNOW, TO HAVE GOOD POLICY IS YOU ACTUALLY HAVE TO HAVE A GOOD POLICY MAKERS AND THE GOOD POLICY MAKERS, THEY DON'T GROW ON TREES, YOU KNOW, THEY THEY COME FROM THE RESIDENTS. AND PALAIS ATTRACTS SOME OF THE BEST RESIDENTS. I THINK THERE ARE PEOPLE WHO PAY ATTENTION TO PERFORMANCE AND ARE AWARE OF WHAT'S HAPPENING IN OTHER CITIES, AS WE'RE HEARING ABOUT TONIGHT. AND THEY BRING THAT INFORMED PERSPECTIVE, YOU KNOW, TO THEIR INTERACTIONS AND THEIR UNDERSTANDING OF LOCAL GOVERNMENT. AND I THINK NOWHERE IS THAT MORE VISIBLE THAN ON THE BUDGET REVIEW COMMITTEE, WHICH IS REALLY THE PREMIER LEGISLATIVE VOLUNTEER ACTIVITY OR OPPORTUNITY IN POWAY. AND IF YOU REMEMBER, EVERY EVERY CYCLE, WE GET A LINE OF PEOPLE THERE WHO, WHO ARE WILLING TO GIVE UP HOURS OF THEIR TIME AWAY FROM THEIR FAMILY, REVIEWING AND DEVELOPING THIS DOCUMENT, ATTENDING MEETINGS. AND AS YOU HEARD, YOU KNOW, ONE OF THEM LASTED FOR MORE THAN FOUR HOURS.

BUT THERE'S A LOT OF TIME IN FRONT OF THAT THAT THEY NEED TO PREPARE FOR, AND THEY'RE WILLING TO DO THAT. AND SO BEYOND JUST IMPROVING THE BUDGET READABILITY, YOU KNOW, EVERY YEAR, THE BRC, I THINK SERVES AS A DEEPER FUNCTION BECAUSE IT DOESN'T TAKE LONG WHEN YOU'RE UP HERE TO GET SORT OF STEEPED IN THE VOCABULARY, THE THOUGHT PROCESS OR THE ACRONYMS, YOU KNOW, THEY'RE USEFUL, BUT THEY CAN CARRY A LITTLE BIT OF A RISK OF DRIFT.

[01:25:05]

AND, AND THEY'VE, THEY'VE BEEN VERY WELL ALIGNED AND VERY HELPFUL HERE. AND YOU KNOW WHAT, I, I SAW SOME REALLY STRONG IDEAS THIS YEAR. YOU KNOW, THE RECOMMENDATION, I THINK REVIEWING THE EQUIPMENT COSTS, YOU KNOW, WHAT THOSE REPLACEMENT COSTS ARE. I THINK THAT WAS SPOT ON. YOU KNOW, THAT'S THE $20 MILLION LINE ITEM THAT WE HAVE. THAT'S A KIND OF IMPORTANT. AND THAT THAT IDEA TO GET THE COSTS OF WHAT THE MANDATES FROM SACRAMENTO ARE COSTING US AS A LINE ITEM OR SOME SORT OF NOTATION, I THINK WILL BE VERY HELPFUL BECAUSE IT'LL IT'S IMPROVES TRANSPARENCY WHEN IT COMES TIME FOR PEOPLE TO VOTE.

AND IF YOU JUST RECALL, IN THE LAST ELECTION, YOU JUST LOOKED AT THE TURNOUT NUMBERS AND POWAY ONCE AGAIN BASICALLY LED EVERYBODY, YOU KNOW, THE SURROUNDING AREAS IN TERMS OF OUR TURNOUT, BECAUSE THE RESIDENTS HERE, YOU KNOW, THEY PAY ATTENTION. AND RIGHT NOW, THOSE RESIDENTS ARE PAYING ATTENTION, YOU KNOW, TO SOMETHING IMPORTANT THAT'S HAPPENING OUTSIDE THE CITY BECAUSE, YOU KNOW, THEY'RE GIVING US SOME REALLY EASY CONTRAST TO WHAT HAPPENS WHEN LOCAL LEADERSHIP LOSES FOCUS OR MAKES SOME HARD DECISIONS EARLIER ON. AND THOSE CITIES ARE, YOU KNOW, IN THE PAPERS, IF PEOPLE ARE PAYING ATTENTION AND THEY ARE AND SOME OF THEM, YOU KNOW, BEEN LIVING ON INERTIA OR A GRAVY TRAIN THAT NEVER SEEMED TO QUIT UNTIL IT DID, YOU KNOW, AND OTHERS, OTHERS HAVE COUNCILS THAT HAVE FLIPPED, YOU KNOW, SOMETIMES ONLY A COUPLE OF YEARS AGO, THEY BROUGHT, YOU KNOW, ACTIVISTS ON AND WHO SAW THOSE RESERVES, LARGE RESERVES LIKE WE HAVE AS UNTAPPED RESOURCES FOR THEIR OWN POLITICAL AMBITION OR THEIR SIM CITY DREAMS OR BOTH. AND NOW THEY'RE RUNNING OUT OF MONEY AND THEY'RE STARTING UP WITH WHAT I CALL ACT ONE, WHICH IS SORT OF THE DANCE OF THE SHENANIGANS. AND THAT'S, YOU KNOW, THE PORTENTS OF A FISCAL EMERGENCY.

AND THOSE THOSE ARE RIGHT BEFORE THE CALLS FOR ANOTHER SALES TAX INCREASE, YOU KNOW, BUT OTHER AGENCIES HAVE MOVED ON TO ACT TWO. YOU KNOW, THEY'RE ALREADY TAXED OUT THE CUTS TO, YOU KNOW, THE SUPPOSEDLY BELLS AND WHISTLES HAVE ALREADY BEEN EXHAUSTED.

YOU KNOW, THEIR MAINTENANCE IS NO LONGER DEFERRABLE AND THEIR MULTIPLE AGENCIES, WE SEE NOW THEY'RE CUTTING THEIR CORE SAFETY SERVICES. FIRE DEPARTMENTS ARE ON THE CHOPPING BLOCK. AND WHILE, AS I MENTIONED, OTHER FOLKS WERE, YOU KNOW, CUTTING LIBRARIES AND PARKS, WE'RE INVESTING IN THE IN THE PCPA, YOU KNOW, WE'RE BUILDING NEW COURTS, WE'RE IMPROVING THE GIRLS SOFTBALL FIELD TO EVEN BETTER THAN IT WAS BEFORE. YOU KNOW, WHILE AND WHILE OTHER PEOPLE ARE OTHER AGENCIES ARE KNEECAPPING THEIR FIRE DEPARTMENTS WERE BUYING A NEW FIRE ENGINE, YOU KNOW, AS MENTIONED BY CHRIS WITH, WITH CASH, YOU KNOW, SAVED UP OVER THE YEARS. AND I'VE ACTUALLY SPOKEN WITH OTHER WITH STAFF ON OTHER AGENCIES AND THEY ACTUALLY HAVE POLICIES THAT EXPLICIT POLICIES THAT THEY'RE NOT TO BUILD CASH RESERVES BECAUSE THEY KNOW THE LEADERSHIP DOESN'T HAVE THE DISCIPLINE TO NOT SPEND THE MONEY, BUT THEY BOND THEIR EQUIPMENT REPLACEMENT INSTEAD. SO WHILE WE'RE COLLECTING LEAF INTEREST, THEY'RE PAYING THE BOND COUPON. AND IT'S REALLY TOUGH NOW WHEN INTEREST RATES ARE HIGH, YOU KNOW, AND THAT'S A DIFFERENCE OF WHAT DECADES OF FISCAL DISCIPLINE LOOKS LIKE, YOU KNOW, ON THE BALANCE SHEET. AND IT'S TRUE THAT ALL CITIES HAVE TO BALANCE THEIR BUDGET, YOU KNOW, BUT WHEN YOU HAVE THAT HOLISTIC UNDERSTANDING, I THINK OF, OF WHAT, YOU KNOW, THAT'S A FOUNDATION OF, OF GOOD POLICY IS, IS HOW YOU GET TO THAT BALANCED BUDGET. YOU KNOW, DO YOU HAVE TO CUT THROUGH CORE SERVICES OR IS IT THROUGH REAPING THE REWARDS OF FINANCIAL DISCIPLINE? YOU KNOW, SO I'LL SKIP AHEAD HERE BECAUSE A LOT OF WHAT I'VE SAID HERE HAS REALLY BEEN TALKED ABOUT. BUT I DO WANT TO COMMEND THAT. WE'VE GOT THE THE LARGEST CAPITAL PROJECT IN POWAY'S HISTORY IS ON TIME AND ON BUDGET AND ON, YOU KNOW, UP ON THE TOP OF THE WATER, UP TOP OF THE HILL BY LAKE POWAY. AND THAT'S REALLY GOING TO HELP, YOU KNOW, IMPROVE THE THE FUTURE RATE STABILITY AND SAFETY OF THAT SYSTEM. BUT I'LL ALSO POINT OUT SOMETHING THAT I THINK IS EMBLEMATIC OF WHAT POWAY DOES AND DOES REALLY WELL.

AND IT HAS A STRONG FOCUS ON THE FUTURE. AND BURIED IN THE CIP, YOU'LL SEE SOMETHING CALLED AN I AND II STUDY, WHICH IS ANOTHER ACRONYM. IT'S FOR INFILTRATION AND INFLOW, AND NO ONE'S GOING TO NOTICE IT AND IT'S OKAY. BUT OVER THE NEXT DECADE OR SO, IT'S GOING TO BEGIN TO REDUCE SOME OF THE UPWARD WATER PRESSURE, UPPER UPWARD RATE PRESSURE ON OUR SEWER RATES, BECAUSE IT'S GOING TO TIGHTEN THE SYSTEM AND REDUCE SOME OF THOSE, YOU KNOW, STORMWATER FLOWS THAT WE ACTUALLY HAVE TO PAY FOR. WE HAVE TO PAY FOR THAT CAPACITY.

AND OVER TIME, THOSE SAVINGS ARE JUST GOING TO BECOME PART OF THE BASELINE. AND THAT'S SORT OF WHAT LONG TERM PLANNING LOOKS LIKE IN A BUDGET DOCUMENT. IT'S SOMETHING THAT, YOU KNOW, THE WAY THE CITY OPERATES, YOU'RE NOT GOING TO SEE IT. YOU'RE NOT GOING TO YOU'RE NOT GOING TO NOTICE IT. NO ONE'S GOING TO PUT AN EYE AND EYE SIGN OUT ON THEIR ON A CAMPAIGN SIGN ON THEIR LAWN, YOU KNOW, SUPPORT THE I AND II STUDY. IT'S JUST SORT OF WHAT WE DO AS A CITY LOOKING FORWARD INTO THE FUTURE. YOU KNOW, THERE'S A LOT IN THIS IN THIS DOCUMENT WHICH IS SO IMPORTANT AND TOUCHES EVERYONE'S EVERY ALL THE RESIDENTS, IT'S NEVER GOING TO MAKE A HEADLINE. BUT, YOU KNOW, ALL IN ALL, WHAT WE'RE SEEING HERE, I THINK IS, IS DISCIPLINE

[01:30:03]

[COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS]

BECAUSE AS THEY LIKE TO SAY, WHEN YOU HAVE A DISASTER AND EVERYTHING IS GONE, THERE'S STILL AMATEUR RADIO. SO IF YOU'D LIKE TO LEARN ABOUT AMATEUR RADIO OR WATCH THEM DO IT COMING UP, IT'S AT THE KOHL'S PARKING LOT ON THE 27TH, AND THEY MAY EVEN LET YOU GET ON THE AIR AND MAKE SOME CONTACTS YOURSELF. AND IT'S HAM RADIO HAS CHANGED SIGNIFICANTLY SINCE THE 70S. WHEN I STARTED STUDYING FOR IT. YOU NO LONGER TAPPING OUT MORSE CODE. THEY'RE USING, YOU KNOW, DIGITAL MODULATION TECHNIQUES AND COMPUTERS, AND IT'S PRETTY NIFTY. TWO MORE ITEMS. I WAS AT THE SANDAG MEETING LAST WEEK AND TALKED TO THE HEAD OF REGIONAL PLANNING, AND SHE TOLD ME THAT THEY ARE FINISHING UP THE SB 79 MAP OF HIGH DENSITY HOUSING THAT'S BEEN MANDATED BY SB 79. GOOD NEWS IS I SAW IT REAL QUICK. WE'RE NOT ON IT. SO AND I CAN RANT ALL ABOUT SB 79, BUT I WILL NOT DO IT HERE SO WE CAN HAVE A DRINK AFTERWARDS IF YOU WANT. AND FINALLY, SINCE THIS IS OUR LAST MEETING FOR A FEW WEEKS, 4TH OF JULY IS COMING UP ON 4TH OF JULY, WHICH IS, I BELIEVE TWO WEEKS FROM SATURDAY. AND I'M JUST, YOU KNOW, AMAZED. WE LIVE IN A GREAT COUNTRY AND WE OFTEN DON'T NOTICE IT MUCH, BUT, YOU KNOW, PLEASE, YOU KNOW, WE'RE GOING TO HAVE OUR 250TH CELEBRATION. I'M SURE THE MAYOR WILL TALK MORE ABOUT IT IN A MINUTE. IT'S GOING TO BE PRETTY AMAZING. BUT PLEASE TAKE SOME TIME TO APPRECIATE THE FREEDOM THAT WE LIVE IN. AND THAT'S ALL I'VE GOT. DEPUTY MAYOR MADE. I HAVE A COUPLE OF COMMITTEE UPDATES. THE GOODAN RANCH POLICY COMMITTEE HAD THEIR ONCE A YEAR MEETING. THERE WASN'T MUCH TO REPORT THERE. THEY PLANTED OVER 300 TREES LAST YEAR, AND THERE WAS SADLY NO SPADEFOOT TOAD SIGHTINGS. AND IT WAS OVER IN 12 MINUTES. AND

[01:35:01]

[CITY MANAGER ITEMS]

IT MAKES OUR JOBS A WHOLE LOT EASIER. ALAN. ANYTHING? NO, NOTHING FROM ME. WITH THAT, WE WILL STAND ADJOURNED AND SEE YOU NEXT MONTH, WHEN WE WILL SWEAR IN A COUNCIL MEMBER. SO

* This transcript was compiled from uncorrected Closed Captioning.