Yes, we hopefully we'll be able to answer all the questions that you have, but this is the uh first meeting of the council to begin to talk about the FY twenty-six budget.

Normally we have this meeting in December.

It's meant to be high level priorities direction.

We have just begun council, I'm sorry, we've just begun uh department budget meetings, so we've just begun actually all the little easy ones so far.

Um and so um this is a good time for us to hear from you if we're headed in the right direction, if we have the right priorities, if there's big things.

There will be lots of times to evaluate the actual budget.

That'll be coming several months from now.

Um you'll be able to uh see more line items, more uh specifics.

So this is meant to be thirty thousand foot.

Um but again any direction now's a good time for us to be able to plug it into into the budget.

Um so with that I will turn it over to Rob uh to get us started.

All right, good evening, Mayor, Vice Mayor, and Council.

My name is Robert Baer, and I'll be giving the uh financial update part of this presentation.

We also have the CIP update um and the we'll cover some budget priorities.

So starting off, we'll go take a look at how we ended the last fiscal year, fiscal year twenty-four.

So um we'll first take a look at general fund revenue.

So our general fund is um our the fund that we center a lot of discussions on during the budget process because one, it is where a lot of our frontline services like police, fire, parks, um, that's where the funding comes from for those um areas in the city.

Um two, most of the employees here in the city are paid out of that fund, so it is of special focus when we go through the budget process.

For general fund revenues, our largest source of revenues in the general fund is our sales tax.

Um in March of 24, as we were preparing the twenty-five budget, we came forward with an estimate for each of our major revenue sources.

And then we're taking a look at the actuals and how we ended the year.

So with sales tax, we ended two point six million dollars above what we were anticipating in March, which is a very positive variance, um, mostly due to strong construction and contracting activity throughout the city.

Um of the other ones we'd like to highlight is charges for service, which is also related to a lot of the development happening in the city.

So we saw very strong returns in the last three months for those revenue sources.

And then for our property sales and interest, we um have been able to earn higher interest on our investments on our fund balance here in the city.

Um so all in total for general fund revenues compared to where we were estimating in March.

So all in total for general fund revenues compared to where we were estimating in March, we ended the year 11 million dollars above that forecast, which is uh good to roll into fiscal year 25.

On the expense side, um for the general fund, um we had an estimate which was below budget, but um we estimated where we were anticipating end of the year, and then we have our actuals.

Um for the general fund, um we ended 2.1 million dollars higher than what our estimate was in March.

Part of that was um we had some expenses that we were anticipating that were originally budgeted in 24 that we anticipated those actually hitting in fiscal year 25, but those actually did hit in 24.

So that increases the 24 amount but decreases what we anticipate in 25.

Um a second part of that is we had some savings um in public safety that we were able to um pay down some of our unfunded liability for our public safety pensions.

Um our other major operating funds here in the city include our public safety sales tax fund, our and our utility funds.

Um those um were pretty close to where we were estimating in March.

Um public safety was a little bit above due to that same um paying down of the unfunded pension liabilities, um, and our utilities were pretty close to where we were anticipating in March.

So with our general fund balance um coming into fiscal year 25, so we ended fiscal year 24, um over 120 million dollars, which is above on the orange line, which is our stabilization or minimum reserve amount in the general fund.

We do have a dotted line on here.

So we do have a number of capital projects that were initially budgeted in 24.

They did not uh were not completed in 24, they will probably complete in 25.

So that budget was initially in the 24 budget, it carries over into the 25 budget.

But since that was already authorized in the 24 budget, if we include that in our estimate, that lowers um our fund balance by about 16 million dollars.

So that's just kind of an important caveat to take a look at as we look at the budget.

So giving an update on how we're trending this fiscal year, so we're about halfway through the year, a little bit more.

Um going into the fiscal year 25, what we included in this budget, we included 511 million dollars in funded CIP.

We approved um additional full-time positions, full-time equivalent positions of 13.4.

Um we had funded supplementals, so additions to the budget of $13.3 million.

We fully implemented the police take-home vehicle program, and then we also included um service increases for we ride.

For our revenues, um, halfway through the year.

Um, for our general fund, right now, compared to prior year actuals, we're $8.7 million above prior year actuals.

And compared to our budget, we're $3.6 million above.

For the public safety sales tax fund, um, we are um about $400,000 above our budget and about uh $100,000 above prior year actuals.

And our utilities, we are trending um for water, are trending above budget, and sewer and solid waste, we're right on track for budget with our revenues.

Digging a little deeper into the general fund, so you can see with sales tax.

Um right now we are about nine percent above those prior year actuals for sales tax, and we've updated our forecast, we're about two percent above the updated forecast for sales tax.

Um I will also highlight state shared revenue.

So compared to prior year actuals, we're down about nine percent.

That is because we are seeing the effects of the implementation of the state's flat tax.

Um, we're seeing that in the portion of the state's income tax that gets shared with us as a city.

Compared to forecasts, though, we're pretty much right on target, just a little bit below there.

Um other sources for the general fund include charges for service, license uh license fees and fines.

Um we're 36% above our forecast, 79% above prior year actuals, so we have some really good news there.

And for property sales and interest, we are 40% above prior year actuals and 15% above our forecast.

So most of our revenues in the general fund are trending very positively.

Digging into sales tax, which is the largest source of general fund revenues.

Um, this is actually for all funds, because we have two specialized sales taxes here in the city, not just for general fund, but also for public safety and for streets, water sewer improvements.

Um we have various categories of sales tax.

Um retail is the largest component of that.

Compared to prior year actuals, we're about 3% above prior year actuals.

Um compared to our forecast, we are trending right along with that forecast.

Um the one that um is the hardest to forecast is our contracting um construction sales tax.

Um right now we are 43% above prior year actuals, which is great news, and 17% above our forecast.

So that one's the hardest one to forecast because it's really dependent on development activity here in the city, which can be highly cyclical.

Rob, uh Mr.

Mayor, if I can interrupt for just a second.

Um he's going uh at a good pace.

Uh if you guys have questions, don't hesitate to stop while we're on that slide.

But I also, if you could go back to the last slide, Rob, I just want to clarify a couple things.

Uh the he said this, but I just wanted to hit home the the contracting is the reason our sales tax revenue is up.

That is not reoccurring revenue.

Most of that, and and I can let Rob or uh Keith talk about the number, but most of that goes into one-time spending.

We do not expect for that number to stay at that level forever.

Eventually, uh Verdi Trails is starting to uh run near completion.

Other ones are starting, but at some point, so we don't staff, we don't create programs based on revenue that isn't expected to be there for the long haul.

You never know when it's gonna stop.

Um we have lots of growth still available to us, but I just want to make it very clear that if you're wondering why we're not doing more or we're not adding more staff or more programs, we don't budget that goes into CIP projects, which you see we have a very robust program.

The other thing for me that is a tell is that our general sales, our retail is flat, auto flat down a hair.

So when it comes to spending habits of the of our residents of people shopping in Avondale, it's flat.

So we're not seeing a significant growth.

Is this fair, Rob, in our ongoing revenue?

Um, I just want to kind of clarify that when you look at the big numbers and and how we're spending our money.

We are very conservative in our budgeting and making sure that we don't over spend well, we can't keep going.

Just a quick question, the rental line that's there.

Is that apartment?

Is that going to go down when we don't get the stuff from the state?

How does that number reflect with what the state is not going to give us?

Um Mayor, Vice Mayor, Council.

So the majority of the rentals is residential rental.

So that sales tax goes away in January this month.

So we will see that definitely decrease over the second half of the year.

So that's uh four million.

Um we gonna lose all of that?

Yes.

Thank you.

Mr.

Mayor Vice Mayor, we will still have some commercial rental that will stay there, so the number won't go to zero.

But uh I think it's closer to five to six million, especially if you take into the growth that council approved over the last five, six years on all those apartments that will no longer be receiving rental tax on the long-term impact.

Really quickly, Ron, uh, just even based on discussion of uh future development that we're all aware of with some of the data centers and such, uh, based on our communication.

It was important.

I guess reiterated the fact that we don't uh we don't count on that until it comes to fruition.

And so for that point, as I would have uh anticipated the offset that we should not do that until it comes to fruition, correct?

Mr.

Mayor and Council, yes.

Um we uh I we don't budget hope um and I consider it very hopeful um that those will come to fruition.

Um I confirmed with Kim today.

The one that I thought was lagging um that should have already started, started uh groundbreaking today, the um the one on Avondel Boulevard Kim, I don't remember the name of it.

Prime Prime data centers.

Prime is starting moving during today, just so they are on the game and not being scheduled inspectors.

So that was less more actual.

But uh, and the ones, Mr.

Mayor, are in counsel on um Lower Buck I Road are they're pouring pavement, they're our pavement uh cement and and uh foundations and footings and all sorts of stuff.

So they're moving very fast uh down there.

So very hopeful.

I and I just I just thought it was appropriate to make sure that I comment on that for the fact that while we're out there and you know the discussion center around what we're what we're losing, which is about five, maybe six million uh for the TPT tax regarding to rentals, is that I know that in the past I've said that the fix will be it'll be offset later, but based upon our conversation, I thought that was helpful that you that you referenced it that way.

So thank you.

All right, thank you.

So um we also have some graphs that speak to the growth that we've had in sales tax.

So in 20 fiscal years 20, 21, 22, we saw sales tax grow significantly, partially because of all the the federal stimulus that was uh going around.

Um people's spending habits changed quite a bit with the pandemic.

So we really did see that um that really significant growth those years.

We are starting to see that flatten out, um especially with when it comes to retail sacks, like uh Ron was mentioning.

Um retail SACS is our largest category of sales tax, it's the one that we pay the most attention to because it speaks to the larger health of the economy.

We are still seeing growth there.

It's minimal, you know, we're looking at 3% over last year compared to fiscal years 2021-22, where we did see that significant growth.

Um I also have a slide here speaking to state shared revenue and the fact that we are this year, the the blue line is actually below the purple line.

So for fiscal year 25, we're actually below last year due to the implementation of that um state flat tax.

Another significant thing that we take a look at, and an indicator that we take a look at as we're doing our revenue forecasting is single family permits.

For single family permits, we're tracking along with the budget.

Obviously, some months were above budget, some months were below budget.

Compared to last year, um, we're generally lower, but that has been made up by significant activity on the commercial multi-family side.

So as far as our development revenues go overall, um they've been exceeding, but it's been driven more on the commercial multifamily side.

Um, as far as our operating expenses for our major operating funds uh for fiscal year 25.

Um, so for the general fund, um we are about 3.5 million dollars below budget.

You'll notice those lines are those uh when we're below budget for this one, they're green, not red, because that is a good sign.

Um so for general fund, we're 3.5 million dollars below um our budget year to date.

Um for our other funds, you can see that we also have some savings there that we've realized um through the first six months of the year.

So I just showed throw a lot of numbers about fiscal year 24, 25.

So that is all going into what our forecast is, which really um how we drive decisions during the budget process here in Avondale.

So we have some assumptions going into our forecast.

So we are assuming that um employees here in the city will receive a cola and merit, our public safety um positions are going to uh receive step increases.

Additionally, we have a market study to uh make sure that we're competitive with our highly competitive positions here in the city, and we can match what the market is for those positions.

We do have um increases in health care costs.

We know that health care is one of those costs that always increases every year, and we have a significant increase in the budget for that.

We have the continued implementation of our police take-home vehicle program.

We have um factored in the loss of the residential rental sales tax.

We do have our contracting sales tax, which as Ron highlighted is more towards the one-time side of uh things, the one-time revenue.

We have that assume going down to more of a base level.

We have seen very significant developments here in the city, but um, as Ron says, we don't want to continue to budget hope.

And we are not including a uh recession in our forecast.

So here in the city we are trying to maintain a structural balance, and what that means is that our ongoing revenues, um the revenues that we can depend on year to year, whether the you know we're seeing economic growth flat or if we're seeing that explosive growth, um, we want to have revenues that we can depend on on good years and bad years.

Um that those that is the blue line on this chart, and as you can see, that is above the orange line, which is ongoing expenses.

So, what that means is that we're structurally balanced.

What we're forecasting is um we are maintaining a structural balance throughout the forecast.

Um in 26 and 27, that number is about 2.5 million dollars, um, where the ongoing revenues are exceeding the ongoing expenses.

You'll also notice that that number does dip from fiscal year 24 to fiscal year 25, and that is because one, the loss of the residential rental sales tax, and two the implementation of the state uh flat income tax.

Um we also take a look at one-time um revenues and expenses.

So one-time expenses would be things like capital improvement projects, our continued reinvestment in infrastructure here in the city.

Um that exceeds our one-time revenues, which are our one-time revenues, are usually tied to development, our contracting construction sales tax, and those development related revenues for permitting and planning.

Um so um with that, we do have a conservative assumption with those one-time revenues.

Um, and we have the one-time expenses exceeding that.

Um we do have what we call the Dorito chip, that big spike in fiscal year 25 for one-time expenses.

And what that is is um we have a number of capital projects that have been in design, you know, in construction, but the nature of construction is that you know you budget one year and sometimes those projects slide.

So we have a number of projects that are budgeted in fiscal year 25 that are nearing completion, like the detention center that recently completed and Fire Station 171, which is anticipated to complete in the next year or so.

Let's try to remember that one off the top of my head.

So in terms of our general fund forecast, so we are in a great position going into the fiscal year 26 budget process.

Um we are anticipating that we maintain above what we call our minimum reserves, our stabilization amount throughout the forecast by fiscal year 2030, that number is 30 million dollars.

Um caveat with that 30 million dollars is that doesn't mean we have 30 million dollars available every year.

It means we have 30 million dollars at the end of the forecast.

So if we add 1 million dollars of ongoing um expenses in fiscal year 26, that reduces that fiscal year 2030 number by 5 million dollars.

If we add, you know, a $1 million project in fiscal year 26, that reduces that fiscal year 2030 number by 1 million dollars.

Mr.

Mayor, if I can add uh Rob, um this also doesn't include the supplementals that have been asked for or any uh either ongoing or one time.

So this is one of the slides that will um come down, hopefully, as we go through the budget process.

Um but this is very good news.

The slide we saw six months ago, or how long it was was much slower than that.

So we are absolutely moving in the right direction.

So going into the fiscal year 26 budget cycle.

So our budgeting philosophy here is we want to make sure that we maintain that structurally balanced budget where our ongoing revenues exceed ongoing expenses.

Because we don't want to have positions here in the city that if economic times get rough, um, we see a slowdown in development here in the city that we have to make some tough decisions.

We want to make sure that we can maintain um the ongoing services that our citizens depend on.

So we want to maintain that structurally balanced budget.

We target having 10% above that stabilization amount in the next year.

We want to make sure that we try to spread out CIP projects, um, other one-time expenses over that five-year forecast, not just put everything into the next budget year.

We want to make sure that we're making decisions based off of that five-year forecast.

Um, we don't want to say, oh, we have all these extra reserves, fund a bunch of stuff, and then at the end of the five years, we're we're having to make some very tough decisions.

We want to make sure that we're keeping that long-range focus in mind as we make decisions during the budget process.

Um to reiterate, we also want to make sure that we're trying to spread out the capital projects over that five-year horizon and not just budgeting everything in fiscal year 26.

Um, and also consider any operating expenses that we may need to add and factoring those into our forecast long term over the five-year planning period.

Um we also have a slide for compensation and benefits, um, which Andy can speak to.

Thanks, Rob.

So talking about compensation, as Rob mentioned, uh, we are in the midst of completing a market study to ensure that our positions are appropriately aligned with our current market, that we're uh continuing to remain competitive.

Um the preliminary information has shown that the majority of our positions are are currently within market.

We're targeting about 20% of our current jobs that we're evaluating a little bit more closely to ensure that if there's any adjustments that we need to make, that we're planning accordingly for FY26.

Um additionally, we're looking at COLA and Merit, kind of determining what that combination is going to look at or look like for uh FY26.

Um currently we're looking at somewhere between a three to five percent amount, but not sure really what that looks like from you know what aspect of that would be COLA versus merit.

Uh one of the other things that we're considering um, and this comes from our benefits committee, but also looking at uh some strategies that other agencies have utilized is if an employee is topped out in their particular market uh range and maybe they're not eligible for any additional merit, um, the consideration of giving a one-time lump sum of what that uh percentage increase would be for them.

So while it wouldn't be an ongoing expense for the city, it would be something to reward that employee for uh good performance over that year and a one-time lump sum amount at the at the time that we do implement any increases.

As far as benefits go, as Rob mentioned again, um the increased cost of health care uh is something that we currently uh have to strategize on as as we look at health care costs going up.

Um you may recall last year we implemented a um a four-tier employee uh benefits plan, uh essentially going from an employee and employee and family um tier to employee, employee spouse, employee family, um, and employee and children to give employees more options and ensuring that there wasn't the brunt of health care costs wasn't falling on one particular group.

So we've we've implemented that four-tier uh approach this last fiscal year, and we're currently looking at um kind of smoothing out that cost to ensure that that those level out.

Um we did have a plan to have that um level out.

I can't believe I can't remember if it was over the the three years, three years.

Um so this is kind of year two into that into that aspect.

Um additionally, we we can continuously look to seek information from our employee benefits committee.

Uh so again, these are employees that represent their respective departments, they pre bring back feedback to our group so that we can evaluate it and analyze that.

Um of the information that we've at least preliminarily received are things like uh a new vision plan vendor, so looking at one that that more closely meets our current needs of our employee base, um, looking at uh deferred comp contributions.

So one of the things that we do for our public safety groups is to provide if they contribute, I think it's fifty dollars uh per pay period into the deferred comp account, the city will match that and and provide that same benefit.

Um so we're looking at the cost of uh providing that benefit to all of our employees across the city and and just ensuring that that's something that we can um we can sustain for the long term.

But that's one of the things that came out of those um benefits committees.

We're also looking at if if you recall last year we had a policy specific to public safety for uh our police officers about being able to provide or sell back um sick leave at the end of our fiscal year.

And so, again, looking at at strategies like that for our employee base um to see if that's something again, just looking in that uh retention aspect, the the recruitment retention um priorities for us as a city.

So I'm happy to answer any questions uh Mr.

Corbin if there's anything additional that you'd like me to cover.

No, no, thank you, Mr.

Mayor.

If I may uh thank you, Andy and Rob.

Um just for council, know that in the base budget that we have uh started with that includes uh uh 5% uh Merit Cola mix uh for employees.

Uh we included is it 11% increase in health care costs uh we've included in that, and we all are have already set aside money to implement the uh market study.

Um we don't know the exact numbers yet, so it may be more or less, and we'll adjust that as we go, but know that that's already built into our starting point as we begin to work through uh this year's budget.

We've started with those uh costs.

Any questions from council?

Very good.

Okay, thank you so much, Andy.

Sorry, I just got a curiosity one here.

The sell back, you said that's on an annual basis.

Is that on the calendar year?

Is it in the employment year, or is it the fiscal year when someone can sell that back to them?

That's a good question.

Um Mr.

Mayor, Vice Mayor, the currently for the the option on the sick leave side, it it's on the end of the fiscal year basis.

So in order right now, we have our vacation sellback that happens in December, so right before the end of the calendar year.

This uh currently for our our our police, uh our sworn officers is, and again, this is our first year doing it, but it would be in uh in June time frame, and I think it's up to 40 hours that they're just so there's no confusion about all the way through, but if there's two set points, that's thank you.

Mr.

Mayor and Vice Mayor it also allows us to budget, so they have to put in the request early.

Um and so we pay it out after July 1st so that we can budget it.

So it goes into one-time costs as as we can fund it and budget it.

Um but it was our plan to uh evaluate it over the next year or so to see if it's something we can roll out to other employees.

It's usually meant for long-term employees who've been here a while and had the opportunity to build up their sick leave.

No other comments?

Thank you, Ron.

And thank you, Andy.

All right, so looking at the timeline for the budget process this year.

So um obviously this is our update on the budget here in January, in February.

Um, in the second meeting, we're looking to come back with um some information about utility rates.

We anticipate there being some significant discussion there as there's some very large capital projects going on in utility, you know, the wastewater treatment plant expansion, potentially some large water infrastructure projects as well.

In March, we are looking to have work sessions on the budget and working towards uh the city manager's recommended budget in April.

Um and then May and June would be tentative budget adoption and final budget adoption.

So thank you, everyone.

Any questions before I hand it off to Rick?

Any questions from council.

I just wanted to share or at least um make the comment uh regarding the follow the budget philosophy that um uh it's really it's kind of a usually when you say a broken record, that's a negative thing, but it's really good to know that um we've been so consistent, at least since I've been on council and council prior to that uh of being you know so prudent with uh the residents' uh money and the way that we allocate and spend it.

Um but also one of the things too is in regards to projects as we plan them out long term, and again, this goes back to my discussion uh with uh City Manager Corbin is costs only go up in most cases, and so being able to take advantage of opportunities uh at a short amount of time.

Um we also must think about some of those things as they become on our radar and uh part of the priorities because as they say you have to strike when the iron is hot.

Sometimes we have to take advantage of those cost savings when we can get them.

So uh while I definitely appreciate that uh that long-term strategy, it's also I think vital that we also look at some of those short-term win wins as a part of that budget process as well.

Thank you.

Uh good evening, Mayor, uh Vice Mayor, Council members.

I'm Rick Carr.

I am the engineering CIP division manager, and I will update you here on our fiscal year 24-25 capital improvement plan.

Okay.

So projects that we've completed since July 1 include the Mountain View Expansion Park Expansion, uh about 1.1 million uh dollar project.

Uh we completed the detention center and PD substation, uh 21.3 million there.

Uh we have resurfaced uh Avindale Boulevard from I-10 to Broadway.

That was a $2 million project there.

Um gateway program.

We completed the monument sign with the Agua Free High School students, which you see in the photo there.

Uh and we've completed the wastewater odor control program for $8.5 million.

So about a total of $33 uh.1 million dollars in projects.

So been able to find some savings in those projects a little bit uh with some different uh pavement preservation options and uh uh we came in early on the detention center.

So we were proud proud to get that completed.

Mr.

Mayor, if I can interrupt uh Mr.

Mayor and Council.

Umce he's standing there, I'd like to once again uh publicly say thank you to Rick for the gateway program.

Um we'll do a lot of big things over my career here, I hope.

Um we got to open the aquatic center.

But um things like this that involve our high school students and create a long-lasting legacy for our residents who live in the area.

Every time they drive through or their kids or grandkids years from now, uh God willing, they'll be able to point to their impact on the community.

So it's just one of those things.

And uh Rick was given just a little bit of direction, him and Kim and the team and and uh turn it into a program that I didn't imagine teaching kids how to take art and create a uh monument sign through design, through permitting, through the whole process.

So again, um just a big thank you to that.

Also managing these programs.

I have two goals with every program on time under budget, and they were able to uh do that with the detention and PD substation.

And so I'm very appreciative uh of the work that their team team does.

And uh shout out to Kirk's team.

Um the he did say pavement we saved money, but Gus has done a fabulous job of making sure we get the most for our money.

And then I probably interrupted for this reason the most.

I want to thank Kirk and the and the council for approving the wastewater odor control because I live in that neighborhood.

So a little self-serving on that one.

So I wanted to say thank you to Kirk and Council for that one.

Okay, moving on to our under construction project list.

So we have a new Civic Center Park for about 4.1 million here on the campus here uh between the library and the new aquatic center.

Uh excited to get that open for the programs to spill out from the aquatic center.

Um we are um nearing completion on the Deacon City Parker model for about 2.8 million.

Uh we are uh up to earthwork and foundations uh for Fire Station 171 replacement uh and to answer Rob's question on completion there.

Uh we're looking for um opening the new station November of this year.

We're also working uh through our old town phases.

We are up to phase three.

Uh this is the cash in area, uh working through those improvements.

Uh we're close to finishing the water line, and then uh we will start on the roads, be completing hopefully by August.

That's a almost a 14 million dollar project.

Uh we are working on Hawk signals, uh 1.4 million.

Currently, we have just started the one at the north side of uh uh Alamar Park, so be on the watch out, Ron.

Uh and then we are uh if you have driven through the intersection of El Mirage and Lower Buckeye, we are working on that signal.

We have the polls up, so we're working diligently to get that one done.

That's about two million dollars.

So all told about 40.2 million dollars under construction right now.

Rick, I promise I won't do this every time.

Mr.

Mayor, if I can.

It looks like a council member didn't understand what the Hawk was.

Rick, can you explain what the Hawk is?

Okay.

It was the wings actually I'm still learning the acronym myself, but it's it's uh the signal that a pedestrian can come up to at uh um a crossing, a street crossing, maybe mid-block, not necessarily at the um intersection, and uh activate the signal.

And for the driver, it will flash red and and then go to red, and the driver stops, and then the pedestrian can cross, and then it'll turn to flashing again, so it doesn't time for the whole time as a like a regular intersection.

Um there's one down here at Littleton.

Avenue Boulevard, yeah.

And Kim, you could probably give it the acronym better than me.

IRC on the spot here I'm gonna go to the acronym.

Okay.

Yeah, no, pass, hard pass.

Uh so yeah, like Rick described, it's another kind of uh safe crossing area for pedestrians.

Okay.

Um and then coming soon, uh breaking ground this summer.

We have the Western Avenue uh reconstruction from Central to Fourth Avenue.

Uh that's about two million dollar, uh, has some federal funds in that project.

Uh we're working on the bridge housing, which is adjacent to the resource center uh for six units there.

That's uh 2.4 million.

And then when we have the old town phases uh continuing in um phase four and phase five, and four is sort of the uh Mountain View community area, um, and five is right adjacent to where the fire station is to give you a visual where those two areas are.

And again, we're spending about 14 million dollars for those projects.

Um then we have our friendship park improvements.

Uh we're looking at the dog park remodel at 1.3 um and then the new pickable courts at about 1.4.

So all told we have a 21.5 million of projects breaking ground this summer that we're excited to get completed for park programs and uh and housing and uh street improvements.

And then um our CIP as always continues to focus on on this list of priorities, um, our community pride.

Uh we want to make sure we are looking at opportunities to um clean up the community, clean up the edges of our roads, add some streets, add some uh or add some sidewalks, and curbing, some new wayfinding, uh the new monument signs.

Uh we are um very active with Corey's leadership on our recreation and tourism.

Uh we've had great activity at the San Valle Bowl courts, and we want to continue to do those types of programs and we'll be looking at trails.

Um continuing to look for grant funding opportunities.

Um again, I've mentioned the trails and sidewalks.

Um also enhancing our public facilities like our libraries and adding more public safety facilities, um, pavement preservation.

We appreciate the council's support of that and that that ongoing program.

Um there's Ron's data making sure we're completing all projects as planned on time and on schedule.

Um most importantly, safety in our community.

So we have um streetlight infel programs, we'll be adding some lighting on the bridge at Avondale Boulevard.

Um we're looking at traffic flow.

We're looking at traffic flow.

There's a balance while we got growth.

We got new signals coming on board, but we also want to make sure that we're having the traffic flow.

So we go back and we check timing.

We've done some timing updates lately.

And again, our uh acronym of the night the Moorha signals are planned.

Mr.

Mayor, if I can interrupt again, I and I apologize to put Kim, I'm going to put you on the spot now.

Um I don't remember uh reading the update.

Um I got an ask about the Van Buren uh bridge.

We talked about lighting and safety.

Um we were talking about adding uh solar lighting, I think, to the Van Buren Bridge.

How's that uh project coming along?

Yes, we I had an update earlier today, and that's uh getting into working as the way through permitting and plan review.

So once we have those plans finalized, then we can go to construction.

Okay.

And then we are also um looking at doing a general obligation bonds grant this November.

Um so the committee has been established and we've been through two meetings.

Um we presented last on parks.

We'll present here shortly on public safety and some follow-up with that.

I'm sure Ron will give council guidance on on their role in that and uh the timeline.

Uh thank you, Rob.

So uh our uh sorry, Rick.

Uh I wanted to see if uh Rob, who's been leading these efforts on our bond, uh actually Katie's leading it, Rob's Manning and doing the the hard work behind it.

Um, like you said, we've had two meetings.

Uh we're meeting with the consultant now to do uh community survey.

Um the numbers and the projects up you here are currently just suggestions to the committee.

Uh they have their own ideas, they have their own thoughts.

And so the next meeting they will uh be presented with our ideas on the public safety uh facilities.

Um and then the following meeting from that, they'll really give us what they want or not to want include in the bond question.

Remember, we have about a capacity for about a hundred and twenty million dollars.

Been very clear to them that we do not plan to raise taxes, um, that this bond has to keep us at our current rate, um, but that that would be a priority that I would not be bringing to council a recommendation to raise property taxes as a result of this bond.

This bond will replace uh retiring, I think is how it said, retiring bonds.

Um and so we should be able to keep our tax rate uh flat.

But Rob, if you want to talk about the process or how the committee is doing.

Thank you.

Um yeah, so mayor, vice mayor, council.

So we um had two meetings with them.

So the first meeting um with our citizens committee was to cover kind of just the general um financials of the city and why we would um seek additional general obligation um voter authority.

The second meeting we had was to review um parks, potential parks projects for such authorization.

We'll have a third meeting on public safety, um, which is uh the second um Tuesday in February.

And then they will um come up with a recommendation and forward that to council for council to consider.

So council will have the ultimate say on what goes on the ballot and what the question or questions look like.

But um, we are very thankful for our citizen committee and the support that they've been providing us, the feedback.

It is very essential for us to listen to the community because this is truly something that we're we're asking the community whether um they want this uh if we're going in the right direction and if this is uh if this is projects they trust us with.

So thank you.

Councilmember Garcia.

If it doesn't pass, are we able to lower our tax since this is replacing something?

Is that a benefit to not having the bond go through?

Yep.

Mr.

Mayor, Vice Mayor, Council.

Um The absolute question is yes, you could lower it if you want.

Um doesn't mean we would.

Um there is flexibility in our base sales uh base property taxes and other bonds we pay off early.

There's other things we could do.

So I don't know that we would necessarily result in a lower tax rate, but of the direction I council after it's retired, technically, where's I I can't see him.

Keith, correct me if I'm wrong on this.

You are correct.

So to expand on more.

Hey, thank you, Keith.

Ron is always correct, but Mr.

Pay.

Yes, if if this does not do not issue general obligation bonds, then as we pay off existing debt, the secondary property tax rate would go down because that is what the secondary property tax rate is for, is to pay off debt.

Okay, so our list of proposed projects for the um uh parks and rec.

We have the trail network and trailhead improvements.

Uh then this will include the pedestrian bridge, and this is the pedestrian bridge that is over a drainage way just at Friendship Park between Friendship Park and the freeway that we've been pursuing for uh many years.

Um it'll also include park shade expansion uh as well as Civic Center library renovations, uh again focusing back on those priorities that we have.

Um public safety.

Uh we have the Almar Public Safety Facility in that uh bond list as well.

Um some public safety administration, some police training, uh expansion for police and the city court uh improvements Mayor, I have a question Councilmember White.

Thank you so much, sir.

Um thank you as well.

Um I appreciate this.

But uh I think this question is for you, Mr.

Corbin.

I'm taking a I got a chance to actually see the land that um Alamara has given us for the public safety um facility.

It looks like a triangular piece of land that to me honestly isn't a floodplain.

I just don't know if that's enough.

Is that what the bond committee is uh challenged with doing?

Are they going to actually assess what we have and then go back and match the amount, or is this what we told them we want, and that's our vision?

Mr.

Mayor, Vice Mayor and Council.

Um there's a couple parts to your question.

First, the land works.

We've already had a uh site uh designed and uh created to make sure it would fit um both for uh fire and for uh PD.

So we're good there.

Uh it is awkward, it's in a location.

Uh when I first got here is one of the first things Shirlene took me around with the chief.

Uh I think you you we we did it right along and and we've questioned quite a bit if that's the right location.

Uh it's free land, which makes it a great location for that part of it.

Um, but um we we can make it work.

It's on a road that has access to uh the raceway um and has uh uh through Broadway and El Mirage uh has good access to the southern part of the city as it grows and expands down in that area.

So we think the location is good, and fire chief can disagree if you know we're we we've debated it several times.

There's also wires that go across the top.

And so we've looked at all that and um it we think it'll work just fine.

The question before uh the committee though is really about is this a project that they could support on the bond list?

So eventually the question will go to uh the voters, goes to council, and council uh uh approves or alters or does whatever the question, but it comes from the committee first.

And it says here's how much we think you should ask for for public safety, here's how much you should ask for for parks, here are some of the projects we like, here's what we think the community can get behind, this is what we think the community can believe in.

This is what we as community members want to see.

These are the things we're willing to pay property taxes to pay off the debt.

Um Rob, this may be for you.

Um the number up there, 31.6.

I I thought that was the total cost of the project where we're only gonna bond like 10 million of that.

Uh that is correct.

So the uh the majority of the funding for that project would come from um what we call development impact fees.

Um so new development would be paying for the majority of that um fire station, police substation, and then a portion of that uh we would be looking for some other funding source, which may include the general obligation.

And Mr.

Mayor, Vice Mayor and Council, if I can also add that number is still uh very preliminary.

I actually think it'll be much lower.

They used uh 175, I think is the base.

Um and this is a far-out station.

This does not need to be um this is on our peripheral.

It's not a central station.

So the the what we put there uh for growth and for other things will be uh uh very different than we would put for both PD and fire in a centralized station that's gonna have more access, more um uh reach than this on the southern edge of our our town.

We'll only grow as far as the Australias, so the racetrack, right?

Anything on the south side of the uh Australias will take another police station, another fire station.

I'll take another whole development.

So when we talk about uh our growth, we have Tullison uh good year, and so we're and then the mountains.

And so we're kind of sandwiched in, so we know um that this will be the last station we need to build in the southern part of the city.

There's no uh need for any other uh uh growth in PD and fire stations facilities down there.

Uh I shouldn't say that for PD, you never know what we'll end up putting PD, but for a fire response time, um this would be the right location.

So but we don't really go in back to your original question, ma'am, and I apologize.

And I apologize.

We don't really go into that much detail with them.

This is really is this a project uh that you could support with a secondary property tax.

Is that fair, Katie, or we've got a couple of questions.

Uh Councilmember Garcia and then Vice Mayor Nielsen.

Go ahead.

If and when the bond goes through.

Are the projects fluid or that's what the money is going to go to?

So if I'm uh speaking to the public and letting them know the bond is good because ABC.

Is that viable or is it fluid where the project could change or fall off?

So uh Mr.

Mayor, Vice Mayor and Council, it depends on how the question is written.

Um you will have a question and Nicole or team, correct me if I'm wrong, but the way the question question is written, it'll be uh general to construct, build, obtain, uh design public safety facilities.

But attached to that we'll have a description, a commitment to the community of what we will build from that.

So if we list the Alamar public, if we list those five things up there for public safety, we will do those five things.

How much we actually spend on each one depends on many, many things.

Um if uh let's say the judge isn't listening, I hope.

Let's say we do the court last I hope he is listening.

Yeah, no, I'm listening.

But but let's say we do the court last, and so the cost is now ten million.

Uh we still will do it.

It just it'll only be paying for 50% of the projects at 100% of the project.

So the amount we spend and the um, especially in parks, uh what we exactly do may vary, maybe the location varies a little bit.

Um we've got some ideas on the uh public safety uh the fire admin building we've been thinking about, but we may find a better place for that.

So the location, so there'd be parts of it that change, but um whatever projects comes out of the discussion with both the um citizen committee and then from council will be documented in a document for the where's Marcella.

The Marcella will keep on record for a very long time.

So 10 years from now when I'm retired, um there'll still be on record that the city committed to doing this.

You also have to think about time frames.

Um, you know, we hope to start and hopefully finish most projects within 10 years over the 20-year loan.

But depending on the economy, you know, when 2008-2009 hit, it slowed everything down.

Um so it's a long game.

Um also you don't borrow all the money right off the bat, right?

Because um we can't build everything at once.

So there's a lot of ifs.

But back to your question.

If we list a project on there, it's a commitment to the community.

Thank you.

And I think I was gonna ask the same one.

You answered it.

If we do the 31 million and we find out that in five years or four years the inflation rate's gone up and now it becomes 38 or 39 or 40.

Well, where's the funds to make up the difference?

But this is the idea to put these things out to the community.

This is our best estimate right now, and then we would have to adjust a little bit.

Mr.

Mayor, Vice Mayor and Council, absolutely.

Um lots of projects.

Um the aquatic center, partially uh bond fund, um, correct me if I'm wrong, partial general fund.

And so that ratio changes based on uh resource availability and uh bond availability.

And then any project.

Council would have to approve.

Yeah, and it all always comes back to council.

Like as we're approving the the project, you guys approve the fund that it is paid for out of.

So we recently came back and asked for a few more million dollars uh bond money for um the design uh and construction of the expansion at the wastewater treatment facility.

Again, we had to come to council to get permission to sell the bonds.

We already have the authorization from the community to have the bonds, but we always come back to council to sell the bonds to create the debt and for approval of the project.

And just really quickly, to the contrary, uh not being able to utilize those funds would be essentially underutilization of the towards the investment, right?

Sitting on uh funds and public funds that we're not doing something smart with.

So Mr.

Mayor, that that's correct.

It it it delays the project or cancels the project.

Um there's nothing up there that we're not gonna do at some point, right?

Um we work very hard as you saw from Rob earlier to reserve our money and and we pay cash for a lot of things.

Um if you just saw the numbers that uh Rick uh went through, we that that's a lot of cash.

Uh what wasn't in there because it was in the last FY was uh the Aquatic Center, 30 something million dollars for the aquatic 28 million.

Yes, 28 million dollars for the aquatic center.

So we're spending uh a lot of cash and trying to borrow as little as possible.

Uh we think that's the best way to do the money that the taxpayers have given us to provide back to them.

So um but at some point this um construction boom is going to slow, and um we will not have all this uh money to do uh these projects that need to be done.

Thank you.

Appreciate it.

Mayor Vicemor Council.

Um next we wanted to touch on our project adjustments.

Uh we've had some projects here that have been our CIP for quite a while, and uh some inflation over time has impacted them.

Um those are the water reclamation facility expansion.

Uh and these are uh in the city manager's recommended uh FY26 budget.

Uh 22 million for the expansion of the wastewater or autoreclamation.

Um phase four, uh just two point six million, and the operational warehouse design, just a half million.

So yeah, and and Mr.

Mayor and Council, if I may, um those are uh projects.

They're not all funded.

Uh the the for example, the water reclamation facility expansion is currently planned for a different kind of bond uh and um impact fees um and and then utility fees as needed.

So we don't have I think the project's up to 145, 155.

Um it was 150 yesterday, it's about a five million.

No, I'm kidding.

Every day.

Five million more a week.

Yeah, five million more in a week.

Um so it's not all funded just yet, but the project is going to be in our long uh forecast, and so we have to begin to plan for it.

Um we have not collected enough development impact fees um to um handle the cost of this plant.

Uh over the sometime this calendar year.

Uh I need to next year make sure I can see finance.

Marcella, make a note.

I need to be able to look at finance.

Um we will be coming back to council to adjust our impact fee schedule.

Um when we originally did it when I first got here two years ago.

Uh it included a cost of a plant expansion at 50 million, six sixty-five million, sixty million.

And that's the number that was used to create the current impact fees for development.

Well, we're less than half, right?

Uh, collecting what we need to be collecting.

So uh this mid-cycle um recommendation that we'll be bringing being we will be bringing back this year will only be about uh wastewater.

Um we're not doing the other fees, but we feel like we need to start collecting, we are under collecting from developers currently to pay for the growth that they are costing us.

So we'll be coming back just as an FY to council to to uh fix that um increase.

Um and next um as we're doing our uh budget planning, we have some new ask uh that are not in the recommended budget as of yet.

Um but we do want to expand El Mirage Road from Calle Hermosa to Alinei.

Um we have the uh Bartlett Dam project um that's uh expanding the dam uh creating more capacity for water, and that's um a project with several cities uh beyond ourselves.

Um we have the PFAS project, uh PFAS treatment.

Um we've there's been some new regulations that have come into process uh of treatment of of water, so we uh need to upgrade our facilities there.

Um of course our Civic Center campus pickable facility.

Um this is the current estimate we have from the study.

Um we are hoping it's not quite 19 million, hoping a little less, uh, but we'll be designing that in the next fiscal year.

Um and then last we have the Desi Lorenz Park Turf Reduction, uh which is currently in design, and the 1.2 is funding for construction.

Rick, I'm sorry to keep interrupting, but I think this might be good time, Mr.

Mayor and Council.

If you'll indulge, um I'll let Kirk uh talk for a couple minutes.

I I do think he should mention actually the Bartlett Dam as well to make sure they're aware of that, and then PFAS uh just a few minutes.

So Mayor Vice Mayor and Council, a couple of items there on the on the slide.

So first off is Bartlett Dam.

We are one of about 26 partners in the valley that are participating in a plan to actually build a new Bartlett Dam downstream from the existing dam to add additional water storage capacity on the Verde River system.

Uh all of the partners have worked together to identify the allocation of water that they would get from from their based on their needs.

The amount of water that we anticipate or hope to get would be about 5,000 acre feet, just a little under that, which basically offsets our entire Colorado River allocation.

So we're not looking at as new water, but as water to make up for any shortage we might see if we see a cut, and I'll say when we see a cut in the Colorado River allocation, because we do expect to see cuts after 2026.

So it's basically just making up for what for what uh we might lose.

So our our cost for that portion of water is $15 million.

That would be our contribution to the overall construction cost of the dam, which is estimated right now to be 1.1 billion.

Um we're still looking to the uh federal government to pick up a big chunk of that, at least half.

Um we're working SRP is the lead agency on this, it's putting it all together and working with the Fed, so we're partnering with them on that.

Uh PFAS is another issue.

Um a few months ago we came to council and talked to you in executive session about some class action lawsuits that we were involved with.

The federal government, EPA issued a back in April of 2024, issued a regulation on PFAS substances in drinking water, requiring municipalities and water providers to remove that compound or compounds from their drinking water.

And it's a very aggressive removal process from a standpoint of numbers, it's almost to the point that it's non-detectable in the water.

That it's a very, very low amount that's allowed.

We have to have the infrastructure in place and have the have be meeting those regulations by April of 2029.

So we've started on our process right after that regulation went into place in April to identify exactly actually how much PFAS we have in our water and and what kind of a problem we were looking at.

We knew it was there.

Um as we were watered watching it over the last few years, EPA had issued what's called a health advisory level, which was 70 parts per trillion, and we were well below that number.

We were in the around 20 in a few of our wells.

So where we were well under the health advisory level, we were suddenly would be way out of compliance.

So we formed a team that evaluated what that impact was to the city, and about 70% of our water supply is impacted by PFAS right now, and we were gonna have to treat all of that water before we distribute it to the city.

The team has worked with a consultant, we developed an action plan, a concept on how to treat.

We're actually going to be discussing that with city management later this week to demonstrate exactly what's in that 105 million dollars, but it is a lot of um treatment facilities that we don't have right now in several of our wells and our booster stations around the city.

So it's a significant um investment and a significant impact.

I'm also while I while I'm talking about it, I'm gonna touch on something that came out last week.

There was a little bit of confusion, and I want to make sure everybody's clear about that.

Um this is an existing regulation that was put out in April of 2024.

There was some news that came out on Thursday last week about PFAS regulations changing, and that is not the case.

What would what happened on Thursday last week actually happened on Tuesday but announced on Thursday, is there was a proposed regulation for the discharge of PFAS into the environment through drinking water or other things from industrial and manufacturing facilities.

That rule under um President Trump's executive order to put a freeze on new regulations.

The rule that was being proposed was frozen and pulled out of consideration.

So as it stands right now, um industrial producers are PFAS or users of PFAS that discharge into the water system or anywhere in the environment can continue to discharge at whatever amount they are that's it's not necessarily regulated, which really just puts more burden on the cities or the other municipal water providers to clean up the mess that they put in.

Um I will say that PFAS is a very um hot topic right now.

It's been in the discussions with confirmation hearings for um the EPA administrator.

I mentioned the lawsuits that are involved.

Um there's a lawsuit with a couple of the water industries against the EPA on how these rules were actually established.

So I know that there's gonna be a lot of um turmoil over FIFAS over the next um few years.

The regulation could possibly change.

More likely than not, the implementation date may go out beyond 2029, but they could also change the limits or it could just go away.

We just don't know right now.

So our plan at this point is to make sure we're prepared as best as we can be and be ready to pivot as things transition over the next couple of years.

I have an email that I sent out to the city manager's office on Friday.

I believe we'll share that to all of you through Anissa so that you're all informed on that development from last week.

Happy to take any questions.

Mr.

Mayor, Vice Mayor and Council, if there's no other question about that.

Um I I saw a couple uh eyes open up on the 19 million for the pickleball facility.

Um this year we hired a consultant to tell us if an indoor facility could fit on that land between the pool and the courthouse and that area back there, and how many courts to make it viable?

Um I think the number is about 10 indoor courts.

Um so we know it can fit.

We know we can put a building, we know we put a parking lot there.

We'll now actually this next year budget for a design.

Um there's no plan to spend 19 million dollars.

That was for a normal constructed building like we would have here or like a uh an office building.

Our plan would be to build something a little more sports-like, either ASC, or if you've been to any of the other indoor pickleball places, uh, it'll be a little different.

So the goal um, I won't bring you a $19 million ask um at that time.

It will be millions to do any indoor facility.

Um, but um stay tuned on that.

We'll have a real number at this time next year at the budget once we have it designed.

Councilmember Solorious, I have a question for you on two of the things.

The expand El Mirage Road, does that include sidewalks or is that just the road itself?

Because I know in the past we've talked about expansion of roads, but is that road expansion and sidewalks to make it walkable or just road?

Uh mayor, vice mayor and council.

Yes, that includes the full build out of the road, including the sidewalk.

And then secondly, the Desi Lorenz Park.

I had a resident talk to me last month, I believe it was about um a high presence of um unsheltered population there.

That turf reduction, is that something to maybe debtor folks from setting up camps there?

Or is that Mr.

Mayor, Vice Mayor and Council, if I could uh take that?

Uh no, uh, that is not not the purpose of that.

The purpose is water conservation.

We think it's an opportunity to create more use, more desired use at that area.

Um we've um had uh several details of law enforcement, and Edith, I can think is behind me.

We've been working through our sonar team to um make sure that that park is used for uh good uses.

Um but when we talk about um redesign, that's not our primary focus.

It's really I was just wondering in general, because it's gonna it's looking at that 1.2 million.

If we were gonna put more of an investment in it, what were we doing to handle the other part?

But you said we've had more details on that.

Yes, yes, ma'am, ma'am, uh mayor, vice mayor and council.

Um trying to think the last time we had a big detail there, but we uh keep an eye on there and uh um I can tell you I did a drive along with uh Chief Espinoza maybe a month ago now, I don't even remember.

So part of the direction from council was for me to get out more often, and so I've been doing these drive-alongs with the different directors and uh it was one of the first places we stopped, was that second place we stopped was I think at that park, and we found a lovely lady there that we uh uh reached out to uh sonar.

Where's Edith Edith's back there?

And uh tried to help to get her some um some help.

But so we have an eye on that.

Um we also know that uh probably about a year ago there was some other activity in in um uh vacant building right near there that we've been working on to keep that one clear.

So we're aware of the area, but but when we talk about um these projects, it's really about creating a use that our community can use.

Uh we're looking at uh educational uh services there.

Corey, did you have anything to add about that?

No.

Ron, I think you're on it and uh Vice Mayor or Mayor, Vice Mayor, Councilmember.

Uh so we're looking at doing some zero escape gardening and demonstration garden uh educational opportunities, something that we've seen successful in a lot of other cities.

Um it's got the nice small parking lot platform as well as a bus pull-in.

Uh so if it was to become a field trip destination for maybe one of our senior programs, we see the opportunity to make it more of an educational space and and really get uh the right user in there um taking advantage of that park acreage.

So lastly, um pickleball, I think it's something that you and I had talked about briefly.

That's not an actual building in itself, right?

It'll be is that an out-of-the-open thing that we're looking at for the future?

Uh Mr.

Mayor Vice Mayor closed, should I say?

In this one, it'll be an enclosed uh facility.

What that looks like, we'll have design.

Um the the first people that looked at it this year didn't really understand that concept.

Um but if you look at all the new and upcoming private ones, um it's it's very open, uh welcoming.

So what it actually looks like will depend on cost and um what we can come up with.

Because it does get a little bit loud sometimes, so you do have neighbors that are in the back.

Very concerned about that.

Uh one of the reasons one of the suggestions was put the parking lot in the back to create even more space behind those houses back there.

No, we're very concerned about the noise.

Uh one of the suggestions the cons the current consultant had was put a walking track in there.

That's been an ask for our community, create indoor walking.

But if you've ever been in indoor pickleball, you you don't want to walk.

Uh it's very loud and obnoxious and and uh pickleball players can get very uh fun.

We can get very fun.

That uh that's the word.

So that's what's wrong that's what Ron's doing.

Okay.

Thank you, Rick.

Ron would have known.

Uh Mayor and Vicemor, Council, that ends my presentation.

I know we've asked questions all along the way, but if there's any others, we'd be happy to answer them.

Any questions?

Oh, okay.

Councilmember Connor.

Thank you.

Thank you, Mayor.

Thank you.

Uh I had just had a question because there was no mention of Donatella, the new park with the Donatella Park.

Yeah, Mayor, Vice Mayor, Councilmember, uh, that is currently in design and is funded over the next two fiscal years for construction.

So Perfect.

Thank you.

You're welcome.

Do you have a number?

Any other questions from council?

Okay, thank you.

Thank you, Rick.

Thank you.

Mr.

Mayor and Council, while we're waiting for um Rob to start us off.

Um Rob, I think I I kick in like slide three.

I think you have to do the first couple.

Um this new partnership, Renee was supposed to be here, so I blame Renee.

But um I forgot where it's going to five million.

I was trying to remember the number, but I think Donatelli is somewhere between three and a half and five million dollars um to get started on that.

All right.

So going through the budget priorities portion of this presentation, so we'll just kind of um refocus back on our general fund forecast.

So um as Ron said, um, this does not include um you know any supplementals or um additional positions um other than the Alamar uh fire station positions, which are anticipated to start in fiscal year 27.

Um a lot of the decisions on this budget process are gonna be working within this space between the the blue line, which is our ongoing revenues and the ongoing expenses if we want to maintain that structural balance throughout our forecast.

And then as a reminder to uh show what our forecast is looking like and that amount that we have above our minimum reserves or stabilization amount.

So we're looking at $30 million at the end of fiscal year 23 or 2030.

So that is if you add one million dollars of ongoing expenses in the fiscal year 26 budget, that reduces that $30 million out in 2030 by $5 million because you're adding $1 million each year.

Um or if you add a $1 million project in fiscal year 26, that reduces that um that amount in 2030 by $1 million.

Um then this is the schedule for our citizens bond committee, um, which we previously discussed.

Um so we would be looking to have uh council approve the potential questions, um consider the potential questions in May.

And then November is when statutorily these elections must occur.

So they can't occur on a primary election, they must occur in a November election.

So I will kick it off now to Ron for the budget priorities.

Mayor, Vice Mayor, Council.

A couple things I wanted to go through.

In uh March, we're gonna get together and go over the strategic plan.

And the strategic plan will lay out the priorities for council for the next couple of years.

If we wait till March to begin the budget process to really get into the budgets, I'm gonna be way, way behind and we'll have a budget in August.

So um these based on discussions that we've had individually or in small groups, or uh discussions uh we had a couple strategic meetings with the community members.

This is kind of as I begin to lay out uh how we spend that little bit of money, what new programs, what new uh staff we add, uh what do we fund.

Um I I tried to put together my thoughts, and I'm beginning to see a real shift towards economic development.

We've always done economic development, but I think it's really been a little bit of tourism, a little bit of uh retail, a little bit of eateries, and uh helping uh some of the small businesses.

It's just been helping.

And I really see a new focus uh, and again, we'll confirm this in March of job growth being our number one priority, bringing jobs to our community members, providing jobs and educational opportunities so our residents can get ahead uh in in their lives.

If they can work, play, uh learn right here in Avondale without having to get on that 10, we're just that much better off.

So when I look at those things, I really see economic development, job growth, business attraction, and then of course continue to be business friendly.

Um had discussions today with my staff on approving and moving projects along.

Sometimes we get handed a mess.

Um, not everybody is a good player when they want to do things in the city, but none of that matters.

Our top priority is to provide excellent cover customer service and help these projects get done that add value to our community, either eateries or rest or um commercial or retail or jobs or tax revenue.

We want to help bring things that make our community better.

So, really for me, as I look at the sex budget, a big priority for me there.

I know that working through the um boulevard, which we'll talk about more in March.

Um, again, entertainment, food and retail.

You know, when we were uh council was uh approving the um data centers there on Avondale Boulevard, one of the big things that the community came out and said they want more eateries, they want more entertainment options.

Big priority for us.

Parks Erect continues to be a priority, uh I believe for this council.

Again, correct me if I'm wrong.

Keep expand, add new.

Um you've heard about a lot of those projects tonight.

I think public safety is uh a top priority.

Uh personnel equipment and programs, uh we continue to invest in all of those services.

You all should have seen on your calendar an invite.

I believe it's Monday morning.

Um we are um celebrating the kickoff, our first set of vehicles for the police take home uh ride program where all the officers uh will eventually have their own take-home ride.

Well, with some caveats, all that one and those other things.

But I believe you're being invited uh Monday, 8 or 8:30 or something like that if you want to stop by and help us celebrate.

Really appreciate council's dedication to that.

Um connected communities.

One of the things I've been hearing a lot lately is um what can we do to create a more engaged community?

What can we do to get the word out and be involved?

And so that's a priority.

Uh Piers here somewhere.

Her team does a fabulous job, but it's not just about peer, it's about all our other departments, whether it's public safety or our uh multimedia people uh throughout, or whether it's uh Jody in Avondale Connect and all the projects, or Kim and the project she has going on, or Kirk getting more involved.

And then, of course, I believe this council is dedicated to providing services to our community, whether that's Sonar or the bridge housing or all the other uh great things you have.

But when I began to look through what I needed to focus on, these were the things that that came to mind.

Any questions about that or comments or feedback.

Uh moving on.

Um, so some of the things that we've already talked about, so I'll go real fast, get you guys out of here.

Um, the personnel, um, we continue to be um dedicated to that.

Uh we're in year two of the fire MOU.

We'll implement that.

We'll begin negotiations for the next one in the fall.

Oh, Tracy's not here to smile, but um Tracy's looking forward to those negotiations.

Um we continue to meet with uh police um as we move forward with that, and then of course, uh HR Andy and uh Renee, I believe, help lead the benefits team committee as we we look at ways to attract our um uh folks.

Um just as a reminder of what we've done so far.

When I started two years ago, we were averaging over a hundred vacancies uh uh on a regular basis.

Uh this morning's report showed 43 vacancies.

Um that is less than a 5% vacancy throughout the city.

Um we are at an 8% uh vacancy for sworn officers.

Um so I think we continue to be uh uh higher than we won, but lower than uh I I'll take that number compared to most any of our competitors.

It's eight officers.

Eight officers.

Uh five percent.

I had that wrong.

Eight officers, five percent.

So we only have a five percent vacancy for uh the positions, uh sworn positions.

Yeah, very excited about that.

One in fire.

Two vacancies in fire, as some of you attended the recent retirement of Cassie.

Um we write, uh uh we're gonna continue it.

Oh, I'm sorry, I skipped.

Uh so and then maintaining current uh programs, I think sonar uh and those kinds of programs, helping the elderly, helping those in need with rent assistance and and helping administer federal and county programs continue to be a priority for this council.

Uh we write I've uh in the budget created a status quo.

Um I've not added any uh resources.

Uh I think we're at what we can afford to do at this point.

If more expansion is needed, we'll have to figure out how to do that, and I'll come back to council.

Um over the last uh year it's been running, it is super successful, but I think eventually there'll be some policy decisions about how much of the general fund should be going towards we ride.

But the base budget I'm starting with is funding it at the current level.

Uh and of course, parks programming and libraries, we continue to do great things there.

Um we added several things.

I don't know if you noticed, but our Christmas lights were even better than the year before.

Um I've challenged them to keep doing better.

Um Corey loves those kinds of challenges.

I just know he does.

Um we have fireworks we have to we have continued to um fund and do a great job.

We we are uh the place to be kids fest.

All the great things that we do here um we continue to to fund and see what we can do better.

Really trying to step up our game in trails.

You saw that on the bond committee questions, you've seen that in some of the projects.

We got two underpasses going on right now.

We've applied for a couple years' worth of grants for the bridge from the highway to uh friendship park.

Uh lighting, I know is a priority for council on those trails, uh making them more visitors, creating educational opportunities, uh bird watching opportunities, all those kinds of things to help create a connected uh educated community there for parks, but uh priority that we're working on.

And then for me, um, and I and I think this is what I've heard from council.

We need to be the best at what we do.

We need to provide excellent customer service.

We are business friendly, we want to bring jobs, we want to bring businesses, we want to bring opportunities here to our community.

That means um funding.

Um Kim and Jody ask for things because they're working their tails off when it comes to development uh permit uh uh reviews, plan reviews, inspections.

The number of inspections those teams do is just uh amazing and the problems that they have to solve.

So we have lots of stuff going on to maintain those uh current programs.

And then um newer expanding programs.

We talked a little bit about business attraction.

I think that um, sorry, Jen, I went running there for a minute.

I think GIN is a fine addition to our team.

I see Cheryl in the back.

Uh great uh uh team that they have going on there, um, but they're probably gonna need some more resources to continue to do uh what they do.

Um I always think we can do better with inspections and reviews and turnaround times and stuff like that.

That takes money because our staff is there is uh we don't have capacity.

We are working full steam ahead in those departments.

Uh trails and parks, we'll continue to work towards those community programs, uh sonar and otherwise, special events, uh PFAS.

We've already talked enough about that.

That's a depressing.

I was having a great weekend until I got that email.

Just gonna say, and then uh the wastewater uh treatment plant as we plan for that.

No for the wastewater treatment plant.

Again, um, we have to figure out a way to fund that because even once we borrow the money, we have to pay the debt back.

Uh so uh my uh budget priorities we've gone through, we've gone through a lot of these, so I don't think I need to repeat these roads and sidewalks continue.

Uh we set up a plan uh Kirk, uh three million dollars a year, or maybe that's Rob.

We set up three million dollars a year for the next several years in our CIP to put towards payment preservation.

So we'll continue to to um work on all of our roads and streets in addition to all the one-time spending we have on like the old town projects or Avondale Boulevard, or if there's another project that we have to do, um Laura Buckeye Road and uh El Mirage.

Um we have uh replacement programs, we have a very robust uh budget program for our large vehicles, whether it's in uh utilities or fire or uh other facilities.

Um I recently received an update from Kirk's team on our vehicles and um how we're gonna get all of our vehicles up.

Um several years ago before I got here, we created a program called Ghost Vehicles, and so those were vehicles that weren't operable anymore, but we can still use them.

And um, so they got used, they get repaired, they're expensive, and they're needed.

And so we're working through a program to replace those.

Oh, yes, ma'am.

Higher, would that be included in this?

Uh, yes.

Okay.

So the the good news is Kirk, and if I have the dates wrong, but I believe that was out two years.

We were gonna replace that one.

It was already on the CIP.

One year, two years.

Kirk, Harold, Rob?

Harold, when when did we already have the the truck that burned?

It was already in the CIP replacement program.

So luckily we do have a robust replacement program.

These trucks don't last forever and they're very expensive.

Kind of like some other trucks in the fleet.

And so we work very hard to get those replaced.

IT program, another large uh part of our budget, but to do all the great things that we want to do, we need their support and their help in their programs.

Another department that's probably working at capacity.

New indoor kind of storage facility.

I don't know that we talked about that a whole lot, but remember last year you guys authorized a study to evaluate space needs.

Right now at the mosque, we have several departments working in his building.

We want to get those folks out of there.

We want to create a place for parks facilities.

Where's Joel?

I think Joel's out here for them to have a place to put all their stuff.

So we're in the middle of the that's a stretch.

We've started.

Somebody help me out.

We started that process very recently, right?

The uh needs assessment.

Yes.

Okay.

Yes, that's our thought.

The only problem is uh it's in another city, but I won't say what city he lives in.

Sorry, thanks for not looking at Avendale.

It's not a good thing.

Um PD though.

And then of course, uh we are looking to expand the uh court jury training room over there at the courthouse.

So um we're we're looking at that, and I don't need to say anything else about PC.

Mr.

Corbin, I didn't um I see that we have new requests.

Do we have um uh uh just taking a look at some of our infrastructure for like fire?

They have store they're storing stuff everywhere.

Is that a part of their line item or is that storage going to be separated?

Like is it going to be separate additional fire storage available?

No.

Um there's I think uh we don't have storage isn't somebody helped me out.

Storage the storage project does not include fire.

No.

Perhaps the command van um which would free up a bay uh if we do that.

Um there hasn't been a been at big ask for storage area.

So when I got here, uh we noticed uh remember Larry just got in charge when I got here.

Um we found uh uh several empty spaces not being utilized, and we also found some spaces where there's some very old stuff that was kept for a long time.

And so we've done a uh a better job of getting rid of stuff that we don't need and we shouldn't have anymore and creating space.

We also moved some personnel uh from his admin area to uh fire station 173, right?

Do we move them out there?

170 173.

We moved some people out there um to create space.

We also took the uh public room that was never being used at 175, and we put some storage in that area.

Um and then of course there'll be a little bit of a storage area at the new fire station, but it really hasn't been a uh a big ask for storage from fire that I'm aware of.

Um we debate the uh size of the new facility, uh, but other than that, there hasn't, just to be transparent, we're actually I'm currently winning that fight, but I got a long ways to go to finish that fight.

But uh I and again that nobody asks for it.

I just walked around and I saw things stored in places that seemed awkward to me, but you know, I'm not in fire safety, so I don't know.

Um we're working through it.

Working through it.

Yeah, I my observations only.

No.

Over the uh last uh couple of years, um we've done uh we uh Chief Rooney has done an amazing job of making sure our firefighters have non-expired equipment, up-to-date equipment, and all of the equipment they need.

Um I got an ask from another council member about PD needing some equipment.

Um providing equipment to our public safety officers, let alone all employees, is a priority for me.

So if there is a true need, if there is something they have to have to do their job to be safe, to be trained, um, it's a priority for us.

Uh the what I don't think it was listed on here was a training um tower.

Right here in the fire training center.

Oh, it's right there, yes, the fire the fire training facility.

Uh we hope to finish that very soon.

Um storage area.

And we'll have some storage area there.

No, that is the new uh training tower going out in the mosque area, uh the the pit out there that he would rather not be there, but uh that's where it's currently going.

Um you had asked uh if I may, Mr.

Mayor, Councilmember, you asked uh probably a year ago about repelling.

Um this tower will allow them to train on repelling.

Um I happened to run into one of their technical crews probably a week ago, and we talked about uh me getting out there and getting to practice on it.

So I'm looking forward to that.

But Mr.

Mayor, uh uh Councilmember Slurra?

Question for you.

Um are all our fire engines in a covered place rather than being stored outside, or do they because I and it may just been maybe they're just parked there outside, but a vehicle of that caliber um not being covered and exposed to elements, um just kind of sticks out there when visiting other fire stations and then visiting other towns when we're out serving nationally on the importance of keeping those vehicles covered.

Is there a possibility for maybe storage at the mosque to make or around the area for that?

Thank you.

Mr.

Mayor, uh Vice Mayor, Councilmore Slaughter.

Um they're all stored indoors.

So they all have a bay to go into, including we allow the association to keep the old uh fire truck in one of our bays.

Okay.

So we have enough bays.

One of the um uh as we're looking at 176, the uh public safety facility in Alamar, is I had uh Chief Rooney create a uh map of all of our vehicles and all his desired vehicles that he he wants, and we put them in a in a in a place to make sure everything that we agree is needed is stored indoors.

Okay.

Any other questions?

Because I think I think this is now where Rob gets to finish up.

Um just but I guess I can while I'm here, right?

Do you mind Rob if I wrap wrap it up?

January, we're gonna do this.

We have uh department head meetings going on right now.

We are going to bring utility rates uh back to council.

Um in addition to the PFAS and to the wastewater treatment plant, um, we have just ongoing inflation and projects.

Remember two years ago, for those of you that were here, we came back with a two-year plan.

So we'll kind of try to do the same kind of thing and um and present that uh to council.

Um we also will be bringing it's not on here, we'll be bringing back the impact fee analysis and recommendation to council for impact fees for wastewater.

Um and will we be doing um I don't see it listed, will we be doing solid waste as well when we talk about utility rates?

Yeah.

So that will also include solid waste rates.

As you know, uh here next week, uh the schedules change next week.

Harold, yes, give a thumbs up.

Next week the schedules change.

That's an effort to make us more efficient.

Um so we are doing everything, trying all sorts of things to do what we can to spend the least amount of money and to provide the best uh quality of service.

But all of those will be coming back uh to council.

In March, we have a work session on the budget if needed, which probably will be needed uh shortly after the uh retreat.

Um and then in April, the recommended budget is presented to council and tentative budget adoption, final budget adoption.

All along the way, um council can make adjustments, uh reprioritize, redirect, and give us feedback to fix all along the way.

Uh Rob, correct me if I'm wrong, but I think I have this right.

May of the adoption of the tentative budget sets our maximum spending uh allotment uh cap.

So after that approval, we can no longer spend more money than is approved by council.

You can make internal changes as long as the total budget does not increase, and then we bring back the final budget uh in June.

I believe state law requires it to be adopted by July something, if I remember correctly.

So we are okay.

With that, you have all of your directors here, uh, several appointed officials.

Uh we're here to happy uh take questions, answer questions.

Uh if if I may, uh real quick, not more of less of a question, just kind of more of comments uh for council that uh had the uh pleasure through the city manager's office to meet one-on-one with each director uh prior to the uh holiday break.

And um I gotta say that it was a really eye-opening education.

I did it more um to be in line with our strategic planning that will occur during the retreat in March.

But I gotta tell you that it really lines up well in addition to not only the strategic planning opportunity, but to this budget discussion as we look at which was mentioned by um City Manager Corbin uh capacity that every department here I can attest based on conversation, and I know you're all very full aware uh that they are all working at um not only capacity, but in some cases I would say max capacity, uh whether it be related to um uh uh full-time or some sort of assistance regarding employees, equipment, technology, all of the above.

Um and so what I plan on doing with that is to provide each one of you with a summary of those discussions, and I really intended to have it today.

I did not have it uh finished on time, but I will pass it out to each one of you so that you are uh or through the city manager's office, provide it to you so that you are aware of not only what the strategic goals are of each department, but how they fit in align with some of the budget discussion that we had today because I think that they align themselves very well.

Um and uh just uh based upon some of the comments that you made uh uh Ron and what's been mentioned by several of the departments here, is that you know we I I really thank you.

I know council really thanks you on just how hard uh you work and how dedicated you are to the city.

And if residents only knew just how much uh you prioritize our resources uh and decisions that are made, um they would be uh very pleasantly uh surprised um to to learn just how effective you all are at managing your departments.

And so I want to say personally thank you for your time that you spent with me over that that duration.

Um and I as I mentioned to you then, council will be getting a summary of all of the information that is provided.

And I know that as a as a policymaking body, it is our job to not only provide our residents with the best customer service and uh organization as possible, but you all with the resources that you need, and so I hope that in one small part that that summary will will just kind of reinforce everything that you've all shared with me, and that I could be a conduit to some of those decisions that we make moving forward.

Um, and so at that for at this time, is there any other questions from council that we have or anything that you would like to provide to any member of the departments?

We did have one other question around on the maintenance part of it.

Councilmember Solorial?

On the maintenance part of the budget, when they're talking maintenance, not only that's Kirk's vehicles, right?

But that's also any like fire vehicles, police vehicles that includes all of it.

Mr.

Mayor Vice Mayor and Councilmember Seller, yes.

We have a uh if the I don't know what the cost threshold is, but any of our large items are on a replacement schedule.

Okay, um, and we work through that.

And that's uh Rob correct me, but that's in our base budget.

So when you look at the five-year forecast, it includes what we expect to replace in the next five years.

And another council member asked me about when do we order that?

Uh we order that as soon as it opens up, so our vendors usually have a window, and so we try to get into the front of that line when we can.

You often know that because we come back to council March, April, and ask for permission to purchase the items early.

Just because I remember before you were here with Shirlene being here in the fire truck that was ordered, and she had said that that was a priority, but it was on order, so that's why I figured I ask.

Mr.

Mayor Vice Mayor, Councilmember Solaro, I I believe we have two new fire trucks in town.

They're they're not quite usable yet, but they're in town.

Um they're getting all the decals on them, they're getting all the uh inspection and equivalent, and we've already purchased these.

We've been waiting for these first and wasn't about to pay for it.

So we have everything for it, and uh to get it in service as soon as possible.

And we will invite you all for the ceremony.

Um they won't let me drive it anymore.

Vice Mayor, just a question that popped into my mind.

So you've got the new vehicles coming in and whatever it is.

What happens to the old one?

Do they get retired?

Do they get shoved to another community or something?

They get pushed out.

Mr.

Mayor, Vice Mayor, uh, Councilmember Garcia and I get to drive them around town for while technique.

Um many things can happen eventually, they get uh sold off, auctioned off.

We have a way of getting rid of them.

In the meantime, though, if they're uh um usable, workable, um, we have uh backup ones, we keep around for uh backups.

They they go down periodically for repair for regular maintenance, and so it's always nice to have um a few uh backups.

Yes.

Well, Mr.

Mayor Council, um, again, thank you for allowing us to have this discussion with you on our budget.

Uh special thanks to Rob, uh Keith, Renee who's not here, Rick for stepping in and the team, and all of the directors who put in the work to uh the ask and the knowledge uh that they have to share.

So again, I look forward to talking more about the budget later on.

Thank you so much, Ron.

Uh looks like we have some of your current events from members of council.

Is there anybody who would like to share?

Councilmember Garcia.

I went to uh both the strategic planning with the community, and it's awesome to hear what they want, you know, like that theme park.

Um, resorts, but what they were saying, you all already doing.

And the community doesn't know it.

So I think utilizing social media or some like maybe a campaign where you guys tell them what you're doing in your departments would be very helpful so they know that these things are already happening.

I the program, the gateway program.

This guy thought that he had like the most amazing idea, you know, to get like the community involved doing it, but we all are already doing it, and they don't know that.

So it would be amazing to see that out there that you are doing these things because you should be proud of it, you know, and it should be shown on our social, on our news medias and all that stuff, and also with that, the people who are attending these are all the the people that always attend it.

So we need to somehow find a way to reach people who never attend these meetings because I think the reason why the South of Avondale has been doing so well because they're so active.

Those active community members really fight for their community.

Where I live all the way north, and I might be one of the only people in my neighborhood that even knows that we have a city council that's actively working on really good stuff.

So maybe an outreach on the north side of the freeway to get more people that are there to see all the stuff that's available to them, so they don't have to go to Lichfield or Goodyear, but they have it already in their city.

Um, it was really eye-opening.

I look forward to speaking more about it in March.

But you guys are already doing a really good job, and the community just really needs to hear what an amazing city we live in.

Thank you, Councilmember Garcia.

Okay, Councilmember White.

Thank you so much, Mayor.

Um fellow council members.

I had the opportunity to go to the city of Tempe on January 13th uh to celebrate with them.

Uh the MLK uh junior day.

Uh and I had great time.

It was just really interesting um being able to see that cultural celebration and and participate with the team there.

Um they gave out great awards, and I was able to get recognized as a member of council here.

I also um this past Saturday in the city of Peoria.

I participated in an event with Delta Segmentatus Sorority Incorporated.

They did hustle for the heart in honor of this um heart awareness month that starts on February 1st.

So if you have a chance, don't forget to wear um ladies a red dress on Friday.

Um be mindful, check on your friends and family members, check on their heart and make sure their heart awareness is there.

But I did provide um yoga instruction, and I did that out here in the West Valley.

Um, and then finally, I um just wanted to share an additional appointment that I received um just this past Friday.

Um, a National League of Cities.

I received an appointment to the racial equity and leadership um council.

So I will be serving um at the National League of Cities level on that organization.

So Councilmember Solorio.

I'm really excited about this one, Jen.

I was uh appointed to the economic development for NLC, it's a federal advocacy committee.

So that will be amazing to put us on the map, but also to tie in with that, I was appointed for vice chair for the small cities council, and I will be representing a larger population because the other people that I serve with are Grandview, Texas, the thousand five hundred, Chadbourne, North Carolina, and College Park, Georgia, and we are at the top of the list.

So they said um we want that their exact words were like we want that Avondale type of money to hearing that many people in because we don't have that.

So um it'll be great because they work not just in one area, they work in all areas.

They work in PD, they work in fire, and they bring those ideas together and help shape policy and take that to DC, and that's where we bring our influence in for bigger things to happen on the horizon.

So okay, well, thank you so much, council.

If I can get a motion for adjournment, second.

Okay, I got a motion from Councilmember Conde and second white councilmember White, all in favor say aye.

Aye.

Aye, no opposed.

Okay, thank you so much, everybody, for being here and have a great night and drive safe.