Afternoon, commissioners.

This is our annual, our year-end finance committee briefing.

I believe we are are we also we also have our enterprise departments that will be um reporting out as well.

So we'll start with general fund, then we'll go to aviation and then we'll go to water.

We'll kick it over to Abby Patel Jones, our budget director to uh take it from here.

Thank you, City Manager.

Um, before started, um, I want to quickly introduce Roma Yango.

Um, Roma is joining me today, and um, she will present the revenue slides.

Um, she has joined management budget team recently, and so this is our first time presenting the information.

We'll be nice, we'll be nice in that case.

All right, we'll get started.

Um, so this is the general fund statement.

Uh, the top section of statement shows our 10 revenue categories, and the bottom section shows the expenditures.

Starting with the revenue, overall revenues that you can see in the top right hand corner.

Um, revenues went up 1.9% or $4.3 million compared to 2024.

Um, while it's more of a modest growth than what we saw coming out of the pandemic years, you remember 21, 22, and 24, um, we saw quite large growth.

Um, this is still a positive results, especially given the fact that we are seeing a decline in our larger source, which is income tax by 6.7 million dollars.

Today we'll walk through several of the highlighted care categories, which are more visible in your printed version than on the screen here.

Um those highlighted categories, we will go more into detail in just a little bit.

Um, however, um, I do want to mention that eight of the 10 categories have increased year over year in the revenue section.

The biggest gains are coming from property and other taxes, EMS fees, fines and forbids, and other revenue.

Um, on the property tax side, I do want to mention that we are seeing that 10.7% increase.

Um, that is primarily related to the millage change that took effect in 2025.

So you may recall our 10 mil of property tax is into two.

Um 4.5 mil prior to 2025 went to the general fund and 5.5 mil went to the bond retirement.

Starting in 2025, the split is even where 5 mil is going towards general fund.

And that's why we're seeing that big increase of 10.7% or almost $900,000 year over year.

Another category that's worth calling out is the local government fund, which you can see has increased nearly 650% year over year.

Um, this is largely due to the fact that we have met primary obligations that are set forth by the state related to the traffic enforcement camera revenue.

The funding has essentially normalized in 2025.

So 2025 reflects a full year of regular collections after traffic enforcement camera revenue has been reduced.

The 4.3 million dollar growth is largely tied to the photo enforcement revenue, which is essentially recorded twice in the general fund.

One is in the fines and forfeits category, and second, it's in the revenue category.

If you recall, um, earlier this year we did the final transfer of $3.7 million from the photo enforcement fund that came over into the general fund, and that is recorded in the other revenue category.

While fines and forfeits category reflects the revenue collected from traffic enforcement, which is now recorded directly into the general fund.

We made this accounting shift to offset the reduction in the local government fund by posting the traffic enforcement camera revenue directly into the general fund.

There is essentially no net impact to the general fund.

Um and that's what we were trying to achieve.

If we hadn't done that, um, we would have seen the reduction in the local government fund for the revenue collected from traffic number program, but we would not have seen the revenue collected from photo enforcement into the general fund.

So this allows us to make that reduction pretty much even.

Year over year, personnel cost increased by 4.8% or $7.3 million.

And this is mostly due to the wage inflation and more field positions.

But they are still tracking in line with the final budget with a budget variance of 0.5%.

But even with that, we've got $4.5 million under budget or about 8.8% budget variance.

So when you put it all together, sources exceeded uses by $4.8 million.

This means we didn't have to utilize the use of cash reserve as we had planned, and we maintained flexibility to support future capital needs, equipment, and any other potential economic uncertainty that we may experience going into the next year.

For context, I did want to point out that if you back out the photo enforcement transfer, we would have ended the year with $1 million positive.

Really, that photo enforcement revenue that was transferred from the old photo enforcement fund is really driving most of that $4.8 million increase.

Okay, now we'll dive deeper into our larger income tax net collection for income tax in 2025 increased by 6.7 million or 4.1 million dollars from 2024.

However, one over made relatively stable.

And what I mean by that is if you look at the chart of monthly net collection on the right hand side, that chart shows the revenue each month that we collected in income tax.

So if you were to back out that five Friday month, um, and then secondly, we also didn't see the large one-time business profits payment that we received in July of 2024.

If you back out those two things, essentially income tax revenue is flat.

Withholdings, which is the largest category in income tax, increased 0.4% or approximately uh slightly over $600,000.

Um withholdings, as you can see in the table, um, we brought in $142.7 million in 2025.

In 2024, it was 142.1 million dollars.

So it is in line with 2024 collections.

Um, withholdings saw an increase of 3.5% and 4.2% in the first and third quarter, um, which was offset by a decline in the second quarter of 4.9%.

So when you look at that growth in the first and the third quarter, it is more in line with the wage growth.

Um, the decline in the second quarter is largely related to that uh one less five Friday month.

As you can see, that occurred in April of 2024.

So in the second quarter, um, there was five Friday month in April and in June, um, while in 2025 we only experienced one, but it was in June.

Business profits did the second largest category, um, which declined by 31.2% after seeing an increase of nearly 45% in 2024, as you can see in the chart in the bottom.

Business profits has uh experienced the largest volatility over the last few years.

Um, it was up over 30% in 21 and 22, and then we saw a decline in 23, and then it was up again almost 45%.

But the difference between 24 and 25 is largely the lack of payment that we received, that one large business profits payment that we received in July of 2024.

That's why we're seeing that large decline in 2025 of 31.2%.

Individual payments are the third category, and the smallest category also saw an increase by 7.2% or 350,700.

And lastly, refunds almost increased by 20% or 751,600.

Refunds, as you know, contributes negatively to the bottom line.

So the larger the refund, the less revenue we receive.

And as you can see in the table, refunds were 4.6 million dollars in 2025 versus 3.9 million dollars in 2024.

All right, now we will cover the remaining revenue categories and good afternoon.

I'll be going over a couple of the revenue categories as Abby mentioned.

So the first one of note is EMS revenue.

EMS revenue increased 9.9% or just over $700,000 in 2025, while billable EMS transports increase one and a half percent over the last year.

The increase in EMS revenue in part can be attributed to the slight increase in transports, but is also due to increased collections.

As a result, the 2025 revenues also reflect the impact of the 2024 rate increase in Medicaid, particularly since the um about 46% of the revenue is um generated from Medicaid.

So moving on to the next category, which is fines and forfeits.

Additionally, a note here um parking and traffic fines revenue fell 23.65, which is driven by a 26.4% decline in parking tickets issued.

Um there was a decline in parking tickets issued as well as the share of parking tickets issued uh that went unpaid increased slightly 25.

So licenses and permits revenue increased 19.6 percent or 713,000.

Um this growth was driven primarily by building and constructions permits revenue, which saw a 33% increase in 2025.

Um, so essentially here changes in permit revenue is largely driven by the changes in the number of permits processed here, therefore, this increase in the building constructions permits revenue is due to an increase in the number of building and construction permits processed in 2025.

So similarly, um revenue increased seven percent, so that's attributed to increased activities and plumbing permits, which is partially offset by decreases in gas and oil and electrical permits activities.

Um and then finally, zoning permit revenue increase 17.1 percent due compared to an increase in permits processed in 2025.

The last category of revenue that we'll highlight is other revenue, other revenue increased 18.9 percent or 2 million dollars in 2025, excluding the transfers in, and accounting for the transfers in, other revenue increased by 753, transfers in, uh, which is primarily photo enforcement revenue as previously mentioned, decreased um from $5 million in 2024 to $3.8 million in 2025.

And as Abby mentioned, the final transfer of cash into the general fund from the photo enforcement fund took place in 2025.

The um increase in other revenue is due to a uh two hundred and five percent increase in refunds, which can be attributed to NATO refunds received in 2025.

So the city received nearly two and a half million dollars in NATO reimbursements, um, excluding the NATO reimbursements, refunds and recoveries fell about 55 percent from 2024, but this is due to large reimbursements that we received in 2024 for buyers participation in Ohio Task Force One for severe weather responses.

Cable franchise fee revenue also decreased 28.9% in 2025.

This decline is due in part to the timing of receipts.

So in 2023, um 2023's quarter four payment was processed in quarter one of 2024, increasing 2024's total revenue to include final payments.

So in 2025, the quarterly payments have normalized.

However, the cable franchise fee revenue has continued to experience a decline of approximately 10% each year since 2021.

This is um potentially could be attributed to a decrease in cable subscriptions post-COVID.

Currently, miscellaneous revenue is increased $6.5 million, 38% since 2021.

Most of this growth is coming from these interest earnings, which reside in this category.

You can see the chart of the rate.

Once our investments that we have locked in for long term, uh meaning three to five years, um, once they will expire, we will start to see the decline in our interest earnings.

All right, um, so going to the expenditures, starting with personnel cost, total personnel expenditures were 157.4 million dollars in 2025, which is 8.7% or 12.5 million dollars higher than 2024.

And as you can see in the chart to the right hand side, um, the personnel costs have tremendously gone up over the last few years.

We started with 131.3 million dollars in 2021.

Um, and then we grew the personnel cost about 3.9% in 2022.

Um again, personnel costs grew 3.6% in 2023, and as you uh may recall, in 2024, it's going to be um went into the new contract year, um, which is why we're seeing that large growth in 2024 of 6.5 percent.

Um, the total cost uh in 2024 was almost 151 million dollars, and in 2025, um, we saw again a nearly 5% growth at 157.4 million dollars.

In 2024, um, you may also recall 5.8 million dollars of personnel costs were reimbursed through the through the state of Ohio's first responder for both police and fire um grant and the MRU grant.

Um, the 2024 was the year for this ARPA funding to sunset.

However, we did receive an extension uh specifically for the MRU grant, and so we were able to take advantage of that in 2025.

Um, as you can see in the table below, um, for the past few years, those reimbursements were large in 2025, it was about 600,000.

Um, and so it was a uh good thing because we've been able to reduce our cost by 600,000 in 2025.

Going into 2026, we will not have any um payment that are there are funding or personnel cost.

Um, after excluding the prior year ARB rent offset, personnel costs grew 4.8% or $7.3 million, and this is largely driven by the wage inflation.

Um, civilian wages, which is the second largest cost um in the personnel, we're up $3.2 million or 7.6%.

Again, um, it is primarily the reason um uh wage inflation, year over year wage inflation.

Um, swarm wages, which are the largest um category in personnel cost grew 8.8 percent or 4.2 million dollars.

Um, swarm wages has a combination of the two things.

We have higher staffing um yeah, as well as our annual contract adjustment and stepping increases.

Sworn over time saw 5.7 percent increase.

Um, and as Ruma mentioned, this is primarily related to the NATO related upstaffing.

Um, we also noticed an increase in the holiday pay of 10.9 percent or 269,300.

This is largely due to having one more holiday for the SA pay group in 2025.

So 2024's Christmas holiday was paid out in 2025, and that's why we're seeing that increase in 2025.

When we exclude other use contracts and material increased by 7.6% or $3.2 million.

Miscellaneous category experienced the largest increase as you can see of 79.4% or 1.4 million dollars.

And this is primarily driven by the NATO related expenditures.

1.2 of the 1.4 million dollars is related to NATO.

Taxes also increased by 905,400 or 67.8%.

This is largely due to the payment that was made to Miami Conservancy.

This payment is in two parts.

One covers the increase that's associated with the existing assessment for the maintenance of the flood protection system.

And then the second increase, which is a new increase for the new assessment for capital improvement.

And that's why we're seeing this large increase in taxes category.

For utilities, we also saw an increase of 5.4% or 224,100.

This is related to the payment made to Miami Valley Lighting.

This is due to the invoicing delays.

As you know, we had some invoicing delays for electricity.

And so there were 13 payments made in 2025 for electricity versus 12 payments made in 2024.

So this is largely related to that delay that we experienced in 2025.

This increase was offset by water utility costs.

Overall, contracts and material increases were offset by two things.

This is as we've seen costs go down this past year.

And so this is related to the economic activities and market condition.

And then we also saw a reduction in rental usage compared to the prior year.

So looking at the big picture, um, and seeing where we've come in 2025 compared to 2021, income tax has remained as largest source of revenue in 2025, making up 68.2% of the total general fund revenue off the remaining categories.

Income tax rose 8.7% or 12.7 million dollars.

Um if we were to look at the compounded annual growth in income tax category, it was only about 2.1%, which means on average income tax only grew 2.1% since 2021 annually.

Um, excluding interest earnings growth was 31.4% or 15.9 million dollars.

Of that 15.9 million dollars, 9.4 million is coming from fines and profits, uh, which contributed 3.9 million dollars.

EMS fees um grew 56.3% and contributed 2.8 million dollars, and property and other taxes increased almost 41%, contributing 2.7 million dollars.

That means the remaining six categories contributed $6.5 million on the personnel side, um, personnel costs remained the largest expense, uh making up 69.2% of the total general fund expenditures, contracts and materials and were 20.3 percent, while investments were 20.5% of the total general fund expenditures, excluding investments.

Expenditures increased by 22.9% or 38 million dollars since 2020.

Personnel costs increased 20.3%, while contracts and material and other uses grew 32.7 percent from 21 to 25.

With the annual wage growth, personnel costs were 26.6 million dollars higher than what we had in 2020.

Contracts and material were 11.4 million dollars more than 2021 amounts.

Um, as you know, personnel is the largest cost driver, um, and it continues to be approximately 70 percent of the total spent in the general fund.

Contracts and materials are also growing at a higher pace.

The supply chain delays has normalized from 20 and 2020 and 2021.

Contracts and material has grown at a faster pace in the last few years than it did in 2020 and 2021.

Putting the transfers out, and so on the left hand side, you can see the various operating transfers, which includes the paramedic training program in the amount of $300,000.

We also have set aside for employee professional development of $280,000.

$400,000 is for us to cover the 27th pay.

As you know, the 27th pay comes around every 11 years or so for each pay group.

The set aside allows us to uh plan in advance so that way we don't have to experience this cost all at once when it does come around.

Um we also have $200,000 transfer for the community paramedicine program.

This is a one-time transfer starting in 2026 community paramedicine program in funding from the general fund.

For the uh CDBG unallowable expenditures, um, we transfer 193,300.

Um, additionally, we also transfer $73,000 for the violence disruption program.

As you know, violence restruction program, the total cost is $273,000.

Um we did transfer $400,000 for this program in 2024.

The miscellaneous grant cash matches are nearly $45,000, and then the two small categories of approximately $21,000 and $21, $25,000 are related to capital expenditures.

One is in the police department for carpet replacement, and then we also uh purchase some computers, or we are going to purchase some computers at the recreation center lobbies.

So all in all, the operating transfers were $1.5 million.

Um for the investments, um, we have $11.1 million dollars, nearly $11.1 million for the Euro dollars your neighborhood.

Um, this is an increase from our prior allocation.

2025 is the first year of the renewal.

Um, in 20 the there are there are two things that are going up in your neighborhood.

One is the resurfacing.

You may recall resurfacing had an allocation of $3.4 million in 2024 and prior in starting in 2025, because we saw almost 60% increase in cost, um, we had to up the allocation to $5.9 million.

And then the second increase is for the newly added housing program of $650,000.

Um, capital improvement, which are listed on the uh top right-hand corner.

Um, the $2.9 million dollars is our normal allocation for 2025.

Um, we also fund contingency in case something comes up throughout the year.

Um, and so that contingency was $150,000 for capital improvement.

Um, the highlighted items are probably familiar to you as they were presented to you during the revised appropriation.

Um, we did end up uh increasing the capital improvement by $1.4 million to stabilize $34 North Main site.

Um, and then as for the capital equipment, um, $2.4 million were set aside for capital equipment.

Um let me back that up.

Capital equipment also has $2.9 million, however, $500,000 is for technology, um, and so therefore capital equipment set aside for two was $2.4 million, and then we have the contingency of $150,000.

In the final revised appropriation, we did end up uh increasing the capital equipment for items that were funded for about $590,000 for police, fire, and planning department.

Our development transfer remains the same, $3.2 million, which pretty much covers two things.

Um is the annual arcade payment, um, the amount of uh $1.5 million, and then the second item is the tax sharing payment to Vendalia Butler School District, um, which is $1.6 million.

Um this tax payment is associated with the jobs that were created at the Dayton Airport.

And so most of the uh these agreements uh that are at the Dayton International Airport are either TIF or P1990 CRA, um, where we are sharing half of our income tax um with the school district.

Um, we have set aside 1 million dollars, um, which hasn't changed.

It has remained the same for the past uh for quite some time now.

Um, and so all in all, we have 22.9 million dollars of transfers related to the investments.

Here is the segment variances, um including the encumbrances, um, the variance overall was 98.6 percent, um, excluding the encumbrances, the variance was mainly 6.3 percent.

Um, and so it's to the departments for spending the uh appropriated budget.

Um, this variance is comparison to the final budget.

Um, and that is uh a really good news story.

Good job for spending down the allocated funding.

All right, so for employment, um as you can see in this chart from the peak in February of 2020 to April 2020, we lost uh nearly 61,000 jobs, which was 15.5 percent decline in the job base due to the pandemic.

Since then, we have seen some ups and downs, uh, but overall at the end of 2025, we ended the year with 395,500 jobs, um, which is um a growth of 2900 jobs above pre-pandemic levels.

Um, the data is preliminary, so it is subject to change uh by the time we see this chart again in the first quarter.

Employment in the Dayton region peaked in July, as you can see, July of 2025, um, and then fell again for the next five months, but is still uh remaining elevated relative to the pre-pandemic levels from 2019.

Job counts steady steadily increased from April to July.

However, between August and December, employment declined by 3300 jobs in the Dayton region.

Um, but as I mentioned, the counts are still 2900 higher than where we were pre-pandemic, April of 2020.

These are our economic indicators.

Um, the Dayton region starting with the employment start, the Dayton region was mostly flat, as you saw in the prior chart from February to May, relative two month change.

Employment did rebound in the summer months of June and July, and then retreated again by 3300 jobs by December.

The Dayton region is tracking behind the state growth.

So you can see the state registered 1.7% growth compared to the peak of 2020, while daily register of 0.7 percent.

Um, for the GDP chart underneath, nationwide GDP declined by 0.6 percent in the first quarter of 2025.

We did talk about this um in our third quarter while um growing to 4.4 percent in the third quarter.

The increase reflects higher consumer spending, exports, government spending, and investments, imports which are subtracted from the calculation also decreased.

The advanced estimate for the fourth quarter and 2025 year end will be released on February 20, 2026, but the Federal Reserve Bank of Atlanta has estimated the GDP for the fourth quarter, and their estimate is around 4.2 percent.

So it is um in line with where it was in quarter two and quarter three.

Looking at the unemployment chart, um, where you see Ohio experienced unemployment uh 4.5 percent at the end of 2025, which remained unchanged from December of 2024, it was also 4.5 percent.

The number of unemployed persons in December 2025 was around 265,000, which is consistent with the same level that was reported 12 months prior.

Uh unemployment for Ohio is either in the same range as the surrounding Midwestern states, or better, except for Indiana and Pennsylvania.

Then lastly, we have the CPI.

Uh, inflation in the Midwest has cooled significantly from the 2022 peak, but remains above historical norms, continuing to put upward pressure on the everyday purchases.

The CPI for all items, as well as core inflation, including food and energy rose 2.7% over the year.

Food prices increased 2.6% over the year, which includes food away from home, increasing by 4%.

Food at home increased about 1.8%, particularly higher prices for meat, poultry, fish, and eggs rising 4.7% over the year.

For the energy prices, electricity and natural gas both increased by 11.4%, while gasoline declined by 6.7% over the last 12 months.

So overall, the economy is stable, but it's also sending some mixed signals.

Growth is slower than the state.

Unemployment remains steady.

GDP has rebounded in these second, third, and potentially fourth quarter.

The inflation has cooled, but is still driving those higher costs that we had experienced over the last few years.

The MPE60 projects is 22.8 million dollars.

And so far we have achieved 22.2 million dollars, which is a great news story because that is a 97.4% compliance rate.

This chart shows a detailed breakdown by project subcategories.

And so we have spent um 73% of the total award and 64.4% of the total DRP.

At the bottom of the page, you see the dashboard link.

And that link is available on the city's website.

That link provides detail drill down into each of the subcategories as well as each of the projects that are within those subcategories.

And since this is a year-end presentation, we also wanted to provide you with some highlights of the projects that have been completed in 2025.

We are going to not cover all of them, but we'll cover some of the more um really good news story.

So starting with the Ronald McDonald House charities, the total allocation for that project was 645,500.

Um the allocation was spent on design, site preparation and landscaping.

Access Center is the second project.

Um allocation of 264,500.

Um this allocation was primarily used to purchase the loading, but they also utilize some of the money for the exterior and interior renovations.

Um Access Center provides gently used medical equipment to people in need.

The Mayo Valley Child Development Center had a total allocation of 300,000.

The funding was primarily used for construction and engineering costs for the new building called the Lincoln Hill Miami Development Center.

Um, this new location is expected to serve around 200 children.

Um, and as you know, um BCDC provides the early head start start and the head start.

So this roughly on this page is the Dayton Children's Hospital, um, which was the 500,000 allocation.

Um, this funding supported the kinship family housing project, um, which includes the construction of affordable cottage style homes.

The next page, we have we'll start with the good neighborhouse.

Um, the good neighborhouse funding total funding was 200,000.

Um, this funding reported the purchase of Crown Mill and a backup generator for the building, allowing them to provide same-day dental crown services in their clinic, which provides uh which they provide at low or no cost dental care to the community.

Um they're also safeguarding the food pantry in the event of power outage.

Um, the food pantry serves around 160 families and 100 unhoused individuals each day.

Um the next two projects are nearly complete, uh meaning the projects are complete, but we're still in the final uh phase of invoicing.

Um, the uh final invoices that haven't uh been paid to them, which includes the rebuilding together.

Um, rebuilding together received 1.8 million dollars.

The funding was used to complete home repairs and modifications in the priority neighborhoods, which include old North Dayton, five oaks, Edmond, Caroline, and Miami Chapel with the ARPA funding.

Rebuilding together was able to assist 139 households, completing 3,570s.

In the image that you see here, before and after image, which is the first two images.

That is uh 1008 Grafton Avenue in Five Oaks neighborhood.

And then the last project is the uh Habitat for Humanity, which received 848,000 of total allocation.

This funding was used for critical route repairs to help stabilize and revitalize the Caroline neighborhood, Edgemont, Miami Chapel, Wolf Creek, Five Oaks, Dayton, and Finthavers neighborhoods.

With the funding, humanities was able to complete pairs of 60 addresses.

And the image that you see here, um, which is on the right hand uh corner of the roof roof repair, um, that is off a location at 1519 Roosevelt Avenue.

Right.

So we have in totality in progress project.

Um, out of the 60, 45 projects are still in progress, um, which totals to about 94.5 million dollars.

Um, four projects have not started, um, which is 2.4 million dollars, um, including in these four projects are uh one of the larger ones is Wongfellow Midtown.

Um, it's a 1.5 million dollar allocation.

Um the grantee received notification in December of 2025 that they will be receiving the historic tax credit, um, which is what we were waiting for.

Um, now that that is in place, PND will continue to work closely with the grantee and provide regular updates on the progress of this project.

Um, the second project is the MVE compliance tool.

Um, the tool will support the city's efforts to engage diverse businesses and comply with prevailing wage requirements.

The project manager is currently working with the vendor and the city department to finalize pricing and requirements.

And then the third one is safe and secure housing.

As you know, the safe and secure housing uh process is underway.

Um, the portion that has been unspent is for the software procurement, third-party software procurement.

Um, the software will provide information for mailing of notices and it will also keep track of hearing requests.

And then the last one is the um internal project, which is which is pool house at Fairview.

The demolition of pool house is contingent upon the flash pad renovation project, which is currently underway.

The design portion of the splash pad project is being finalized, and the construction portion is expected to be put out in all in all for the general fund um income tax collection were lower than 2024 by 6.7 million dollars.

If it wasn't for that um extra Five Friday that occurred in 2024, as well as the uh one large payment business profits payment that we received in July of 2024 income tax is pretty much flat year over year.

Total revenues in 2025 performed 239,400 under the final budget and 1.9% or 4.3 million dollars higher than 2024.

And as I mentioned, um 3.8 million dollars of this is related to that transfer that we did from the old photo enforcement fund.

Um personnel costs are 4.8% higher or $7.3 million.

Um, this is largely associated with the NATO-related staffing in more positions as well as the annual wage growth.

On the contracts of material and other uses, um 4.5%, um, including the 1.5 million dollars in operating transfers.

When we isolate contracts and material without transfers, the growth was 7.6% or $3.2 million, largely attributed to the NATO related expenditures, as well as higher taxes.

We also had higher payments for C, which is a normal inflation and the higher streetlighting cost.

So at the end of 2025, sources by 4.8 million dollars, which eliminated the need for our planned use of cash reserve.

As you know, we had planned to use the cash reserve to balance the budget, but because we ended in the positive, we did not require that.

And it also provided us the capacity to address the emergency structural repairs, as you know, at 34 North Main site, as well as increasing the equipment allocation for specifically for police, fire, and planning at the year end.

So year end performance was driven by sustained strong performance related to the interest earnings.

As we mentioned, this is a truly a one-time source.

We're going to experience that for the next few years, but once it dries up, um it will be gone.

And then the second piece here is the transfer of that one-time transfer of the $3.8 million from the photo enforcement fund into the general fund.

Um overall, the city's budget performed favorably due to the strong fiscal stewardship policy organization.

Well, thank you.

That's good news.

And you know, right off the bat, the things these top the pages the export is from the all the departments show this year to consider things you'll see.

Um Commissioner Joseph, uh I just second your comments.

Uh no questions uh other than uh thank you for the stewardship and see um still performing strong from the budget and stuff.

So thank you.

Thank you, Commissioner.

Yeah, my colleagues' comments.

Um working, um you know, it's remarkable the amount of effort into being good stewards of these resources and getting them in accountable budget.

I do have a question.

The question goes back to the broader budget question and with the public hearing on the budget.

I was asking where is the evaluation component of the policy budget.

We have the year-end results for the fiscal budget.

Okay, from what I can tell, this presentation is divorced from the CSA's 14 outcomes and an overall evaluation of the policy budget.

So I'm curious when do we see that evaluation?

So when we present the information, when we present the annual budget to you in the presentation include the performance from the KPIs for each of the program areas, um, and it shows the comparison between quarter three and quarter three, because that's where we are at that time the year.

Um, and then it also shows the overall performance for the entire year, the prior entire year.

So we can see how we perform for the entire year, and then where we are today compared to last year when we were follow up in February for the final order.

That's right.

Yeah, and then like the city manager mentioned, we received the annual report um in February, which includes the entire year of performance.

When so the metrics are usually identified with some of the intermediary process items, not necessarily the uh objectives of the CSA's 14 objectives, and so those metrics really measure process and activity and necessary outcomes, and then the policy budget it calls for whether the budget is being effective and efficient on the outcomes, the broader CSA outcomes.

So the metrics are tied to the programs, each of the program areas, and those program areas then are tied to the community priorities.

There are 14 community priorities, and all of those program areas fall within those 14 priorities, and those 14 priorities are then tied to the five CSA, and that's how the um connection is made to those metrics.

Right.

I understand that, but they don't cascade up to uh EI for the 14 objectives.

It seems to me at this point as we're getting the fiscal budget back, and we have good news here in the fiscal budget.

There should also be a parallel process looking at the policy objectives and whether this fiscal budget was achieving the outcomes of the policy question.

The other thing for the outcome, uh, we you know we do the annual survey.

Um, and so the annual survey does provide us with feedback from the community on how are we doing um against providing those services in the community.

And so those metrics are really related to the day-to-day work that we do, but then we go out in the community and we ask them, well, now give us your feedback.

How did we do?

And that's where the survey results comes in place for the outcome.

Right.

And that data gets wrapped up into those program metrics at some at some levels.

But again, I think there's a cascading up where there should be an objective at the metric at the objective at the CSA level that then lets us know have we achieved increasing safety and uh bringing justice to our neighborhoods, those big objectives that we have.

That's my own account.

Thank you, Chris.

Yeah, thank you.

No, I've just appreciated the work.

I I haven't said your point on that.

Um I think maybe it would be helpful to kind of try to capture that data um at some point.

I'm not sure where that where or when that happens, but uh, let's want to think about that some more.

But yeah, other than that, uh, thank you for the report.

Uh just two comments.

One is uh my brand new question about gas and diesel fuel costs.

I'm really glad to see the decrease.

I know that we saw the decrease in cost.

Is there any indication that decreased use is happening, like fewer gallons are being buried?

Yes, you don't have to answer me now.

I know you I'm curious to find out.

And the third thing is uh I know that we're getting a million dollars in transfer value investments, uh million dollars on demolition, which is great.

And just reminding me that we've been discussing the last couple of weeks what's gonna happen, whether the federal money for demolition is there anymore.

And uh that just a reminder of me that I wanted to check in with you all uh to see if there's planning both gaps to make sure that we have sustainable amount of funding to make sure to take it out of the houses, still that's still gonna be taken down after we take it off the stage.

So, yeah, and we're we're looking into that with our federal state lobbyists as well.

I mean, you you know we have about a million dollars in C D BG that is used primarily for boarding, um, and there's some demolition.

So, you know, the after the federal money that we've identified for this five-year plan goes away, we're trying to identify other opportunities for other funding sources.

That's all I have again.

Thank you.

All right, but thank you, junior staff.

Excellent work this year.

We'll have aviation error.

Okay.

So um just want to give you a highlight of 2025.

So overall, 2025 was a good year.

We started out uh anticipating and welcoming in-person pression, the NATO parliamentary assembly.

So we need the airport really showers well.

We got a lot of good compliments.

We uh have the escalators working, so we have a lot of good accomplishments that happen in 2025.

So we also receive over nine million dollars grants to replace a lot of our jet bridges, old jet bridges.

Uh so and also you've probably heard in the news the 78 million dollars that we receive from all how treatment funds.

So that is really all good stuff that's happening.

Uh so uh also the airlines will go to us as well.

So United added capacity to Chicago.

We added uh mainland aircraft to both Chicago and Denver's uh Delta Airlines added this place to Atlanta.

Yeah, do service announcement that Legion part of service to Myrtle Beach come this May.

So all good news, good stuff, Jody.

Uh their operational post office, they're actually manufacturing parts for their uh vertical takeoff and aircraft.

So it's all good.

In spite of all the news that that happened with Doge and government shutdowns.

So but we still in uh 2025.

Uh with some positive news.

Our uh claimants went up 0.7 percent.

It's good.

So we ended about 657,000 inflamements.

Those are people that actually buy tickets from Dayton.3 million people to actually use the air.

But we can't claim that everybody buys the ticket.

Commissioner Beck, I know you knew this up to make you say inflammate versus declaimant.

So we total about 1.3 million people, but you can buy tickets and basically 67,000.

We want to rise.

Airline revenues went up about 0.2 percent, 16 point 16,900 2024, non-airline revenue to uh something about 16.5 percent parking revenue increase by 880,000 26%.

We also we did increase the rate, we're still below Columbus in Cincinnati.

So we have very competitive parking rates.

So uh and plus can you park in the garage and walk across the terminal?

So now the airport has a uh feature.

Our rental car concessions, they're about 1.3 million.

Well, that's due to settle up.

So I think I mentioned last time that uh during the pandemic when the mags went away.

Uh we had to do a true setup.

So we finally got it all sorted out.

So now we're all good with the rental car companies.

And we have uh put something new in place with them.

So we're settling up at the middle of the year.

Now we set up every new that kind of makes it go a little bit better, so there shouldn't be any bags, any large amounts of coming in uh at later date.

Concession revenue, they went up about 160,000 or 14% with increased sales, and probably the good news of the airport that we're getting new concessions.

Uh the old max and ermals, that's gonna go away.

That's gonna be a warp wing.

Uh soon, right now it's currently closed.

They're in the process of remodeling that we expect to have that open by June, mid-June.

You know, right now, all the other restaurants are being uh revamped as well.

But right, we're gonna wait until the max and ermans and what we use operational, then we do within the concrete right now.

They're operating and uh very busy, so it's amazing that uh we're seeing a lot of traffic into our concession areas.

Um total sources are up by 3.2 million or 10% compared to 2024, about 1.1 million or 3.4% higher than budget.

Our total uses have increased by 612,000 or 4.8%.

Under budget, they're still under budget, even though they go up a little bit.

Personnel costs are up about 750,000 or 7.2%, but remained about 243,000, 2.1% below budget.

Capital projects are down 325,000 or 16.5.

So we got some low bids plus for the jet bridges.

So it's a real surprise as they came in lower than our estimates that was good news for us.

Uh contracts materials, other uses are up by 929,000 or 6.4%.

But it's still below budget.

This is uh giving a snapshot of our operating revenue, which is uh airline revenues and non-airline revenue.

So this is kind of the split that we like to see roughly about 70 percent non-airline revenue and about 30 airline revenue.

So we're uh 2872, which is good.

Uh again, airline revenue is up 16,000 or 0.2 percent year year, offset by annual settlement, internal rental rates.

Uh non-airline revenues gone up by 3.2 million or 16.5 compared to 2024.

Again, this is all due to the uh large in part due to the rental cost setup, higher CFC rate and the CFC that's a customer's facility charge.

That's what's on the uh like you rent a car every day.

There's a fee on there, six dollars.

So we collect six dollars per day for the rental car was 550 to increase it another 50 cent.

So that's helping us and what that does help you pay for infrastructure improvements.

So that just helps up pay those infrastructure costs of the garage and uh uh here's some components of airline revenues, terminal rent base and landing fees.

So inside the terminal, uh we charge the lines for uh use of bridges, the gates, and then the uh bag claim system ticket capital and all the space that they've been.

We're seeing uh a decrease a little bit uh because we did lose uh one of our tenants uh last year, which was uh air, Wisconsin.

They uh we're operating for American and they lost that contract.

So we lost a little bit, and we also decreased our uh journal rates.

We're really trying to work with them easily cost low, so it kind of reflects that a little bit.

Uh landing fees increase.

Uh, we need to get larger aircraft uh in Dayton, such as the Denver, uhsaw More capacity into Atlanta, and also we're uh collecting a little bit more from uh the GR general aviation type aircraft, such as the private aircraft.

We hired a company called Plain Pass, and they track the airplanes that come in and they actually build this companies and provide the revenue to the airport, which they take a certain percentage of it.

Annual settlement was 91,900.

So I'm gonna two uh very components of not airline revenue, which is parking rental car concessions and the property tax around this parking revenue again, like we said was up uh 889,000 six percent, uh, which was increase of parking rates, uh car concession revenue increase by 1.3 million two percent again.

This is all settled up, so that should be over now.

So you sort of see that going forward.

So all the prior years have been set up concession terminal uh revenue increase by 160,000 or 14 percent over 2040, stabbing more utilization.

So we're offering a lot more again.

Uh we have coffee and uh uh vending machines and low concourse and the lobby, but we didn't have before.

So we're seeing a lot more people taking advantage of our concessions.

Uh property taxes up uh 30,000.

And just so let you know, uh, Commissioner Beckham, that we we uh asked this uh when a tenant taxes uh we get reimbursed for that so it's basically past through cost, but we have to budget for it, and because what's happening down in the south there was a huge building, the con group has done where the taxes went up, and we weren't expecting that large increase that we had to budget for that 430,000 increase.

Around this is uh 145,000 or six percent due to uh new airport tenants, such as Jovi, Sierra Nevada.

So they just completed the uh fourth hangar, so this is really good.

So now there's I think last year we had only two, and now we have they're all the operational fourth one goes online next week.

Just pass the final test, so it's all looking good.

Um, revenues up by 320,000 and 95.

This is the interest offset of one million dollars distributed in the center personnel cost uh personal costs up by 75,000 seven point two percent year of a year.

Uh leaves are up 498,000 seven to five percent due to wage inflation staff.

Uh friends is up by 166,000 or 9.9 percent with uh uh increase in wages and additional pensions.

Old time is up slightly, about 9,500.

And the agencies of bill, we don't need to offer as much.

So we'll slide it up a little bit, but not costs are up from 2024, growing seven-four thousand unit with five point one percent contracts and materials.

Uh total contract uh material expenses have increased by almost a million dollars or six fees possibly down over here, about thirty-one thousand.

Uh market is up seven thousand, but services are down by five hundred and thousand, and taxes are up again.

And utilities again up.

Senator sewer, water, gas.

459,000, 18.2%.

And other contract material is up 536,000 or 113%.

So nothing major, but this is a good difference.

Again, with our employments, this is uh we over about 11,000 additional employments compared to 2024.

America remains our uh primary uh carrier.

Delta and United, you saw growth uh with Delta United and Allegiant.

Uh American, you know, that was impacted a little bit because of what you know government travel with government shutdown.

So that's why you see the uh two percent decrease with the American airlines, really primary uh transport a lot of the government to places like DCA, uh Dallas Fort Ward.

So we saw a decrease there, but the other airline's a delta minute at least it also increases, which is positive.

But uh we're happy with that, so moving in the right direction to wrap it up.

Um sources are up 3.2 million or 10% compared to 2024 planes have grown 1.7 percent on airline revenue is up three percent total uses are up 612,000.

So up 78,000 contract materials other needs to increase 929,000.

Um total project are down 325,000.

Um department ended 2025 with the 88,200 surplus.

We have a balance budget for surplus increase revenues from parking from the parking session, positive slightly with 50s.

No, in contract material.

We can continue to uh improve cost saving measures where we can, but well intentionally growing service to ensure future financial success.

Any questions?

Thank you, Commissioner.

Uh thank you, Gil.

Uh it was good to recently spent some time at the airport with the team and deputy city manager loft and definitely a comprehensive uh opportunity and learned a lot there.

So I uh don't know I appreciate them as I must say come back anytime you want.

Absolutely.

Um one question, uh definitely glad to see that if claymants are slightly up, that's always encouraging.

I'm just curious about the uh parking rate increases, and I guess my question is are we are we doing some you know, type of schedule in which we can make those rate increases to be more competitive, or is this more so kind of a one-time increase?

Just curious if this is something we can come back to review and see if it comes over time, or again, is this a one-time one time?

We always looking at you know, right now my goal is always to be competitive with uh Cincinnati and Columbus, look at their rates and what uh rates in the region.

So uh we we're very we're one of the lowest airport in the state of our rates are like lower Cincinnati raises their rates.

Uh I think up two bucks.

Let's see, costs go up, cost of maintaining the parking facility and why it goes up so you have to wake it revenue.

We uh parking one of our largest singles of revenue.

Thank you.

Well, yeah, I um was thinking about the parking twice and too like if there was an opportunity there.

This in your opinion, um do people evaluate the parking costs when they decide on whether or not they're gonna go here or somewhere else.

I I don't think so, but I I think uh I think look at the airlines, but it's a good selling point for the airport.

We have reasonable rates, but that's one of the things that I can't control.

I can control the ticket prices like control of parking.

That's one of the what I'm looking at is that it's passenger experience, you know.

We put in the uh control system, but uh properly.

So people have a great experience, and I want them to have uh reasonable pay a reasonable rate.

I just went to the summer fee and three dollars because the market arrested so we you know uh I don't think I I don't think that's a decide back from Pi.

But it's a part of the uh passing experience.

And remember, Commissioner, we're still dealing with higher rates than Cincinnati call it flight flight costs, right?

And so it's kind of a they're balancing a lot right now.

If we can get successful in bringing in some low-cost carriers and keep driving those flight costs down, then you know, I think that there's opportunities then to look at you know where we have room to move to you know generate more rip.

Yeah, well, the reason I asked the question someone asked me recently.

Um if we just offered free parking, doesn't feel like that's not an opportunity.

Wrong direction.

That was my my thought too.

And right, so I see you sweating over this.

But uh, this is definitely I mean this was enlightening for me because it demonstrates you know the parking is a huge economic driver for that.

And I I guess I'll ask you this question offline.

I would be interested in find out what the break-even point would be for in terms of parking.

Right now we're we're positive.

But what would that be?

We'll talk we'll talk about that one.

But that's all I ask.

Thank you very much for work.

Thank you.

Friday or Thursday.

Oh, here we go.

I'm working on working on that protection.

Okay, then me both.

Hello, good afternoon.

My name is Katie Henny.

I'm the director of water with me.

I have Kenna Chris.

I'm sorry, I'm hire.

She is our financial services division manager.

We're gonna talk about the engineer for 2025 for water.

It performed as expected on both our revenue, but also on our expenses as well.

We'll dive into a little bit of that, some pilots that you can see there's that line performed as expected.

There are some increases there, which we'll probably let people out on the um sanitary side.

We did have some positive um lighting with that.

We'll talk about it as we go on, but again, we put as expected, and we'll add changes overly excited about other than the fact that we're pretty much decided.

Um, so good afternoon.

I'm gonna go over our sources and use statement, which is essentially a summary um of our expensive revenues for 2024 and 2025.

Um, and then our director will dive into some or any changes.

So in our sources and uses statement, we always start at the top with our sources, other words revenues.

Um, overall in the water fund up 5.8 million dollars or 8.5% when we compare 25 to 24.

This was really driven by our three largest uh revenue categories.

The first and largest being revenues from city customers, we were very close to our budget forecast, um, only around 240,000 above budget forecast.

When we look at year over year, a 7.5% increase of 2.4 million from our city customers, that's very closely in line with our rate increases uh for 2025.

Second largest revenue category is revenues from other jurisdictions.

So considerably over budget forecast, and that was really due to uh some favorable bill timing, but also higher revenue in certain county accounts with the moment.

But yeah, year over year and 8.3% increase of 2.2 million.

This is right in line with the rate increases with the exception of those search favorable bill timing instances.

The third uh revenue gain was in interest revenue.

And so we experienced a significant year over year growth of 1.5 million, and um budget director spoke to that, but that was due to higher than average yields and investment portfolios post-pandemic, and a few times where higher entrance actually is supposed to looking at the bottom half of the table, those are our uses, so money out, our expenditures that was up only 3.6% or 2.3 million.

And so we had some increased categories, very similar to the general fund, uh personnel costs up 6.3%, contracts and materials, which we expected considering inflation.

Um that was due largely to uh sledge disposal costs, but we are also at the end of our life in our meters in Brooklyn and Troutwoods.

So we've been working very closely with our colleagues finance um to make sure that all those customer service concerns are being addressed, and so we've cruise out um replacing aging dime meters, um, and so we hope your driver in that category, and then we also had some well-field improvements at water supply entry.

Really the reason that we can see what we expected um in our overall uses due to inflation was because we had a really strong offset in our capital equipment.

And so we kind of talked the flip of this this time last year.

We had um we were so impacted by the supply chain issues in this category.

So we're struggling to get all the equipment that we had been ordering in 21, 22, even into 23.

Our colleagues in procurement and budget helped us re-budget, reprocure when some of those purchase orders lapsed.

We were finally able to fulfill a lot of that in 24.

So that um category almost you know doubled in a way.

And so now this is not that we're not purchasing the equipment that we need, we're just back to business.

Um, like we always like to see, we did not have to use our back reverse in the water fund in 2025.

Um it back to our director to go over some of those.

We looked at our marketers, yeah, and we did perform as expected.

We were up when we looked at the city of Dayton rates.

We didn't fully realize our 9% rate increase, but we did hit about seven and a half percent, which is what we expected.

We do have a little bit of bill timing, so we expect as we go to the next quarter, you can increase there.

But this is just due to as we're able to, but our usage is still as we expected, so that is relative to when you look at other jurisdictions again there, you're gonna see that we're pretty much performing as expected.

We're not quite making the rate increase that we were expecting from there, but we do have some volumetric increases, so there is other uses that are increasing, but you also have to get a single idea.

Um, as Ken pointed out earlier, you can see that we had an increase of 1.5% in the interest rate.

So again, we are happy to see that.

But then we also have that revenue increase from line sales, which we can see year over year.

So this is more due to the fact that we have 13% increase that's cut to the index, but we also had a few extra additional sales as well.

But this is mainly in conference, but all interests.

So as we go over to our expenditures on the water side, we did have some increases in our personnel, which is about 1.7 million dollars.

This is due to our regular year increase, but also you're going to see some increases in our overtime.

We are continuing to build some positions, so we're hoping that overtime will start to decrease, or we do continue to see overtime, that's because we're doing projects in houses, not just covering this 20.

Um, we have the offset that we talked about by a little bit of earlier that you see our continuous even for instance once of personnel.

As you go down to our capital equipment here, um, this was talked about before.

So if you had the supply chain issues from COVID, we're with the order things that come in here, and that's continued on.

You can see that we're starting to that supply chain issue, and we're starting to see that when we're ordering and budgeting, it's starting to come here that we actually did.

So it's not that we're changing our budgeting, it's just as items are starting.

If you look over at contracts and materials, we do have where we're up there.

And this is due partially if we start with looking at residual or sludge, which is tied to our fundamental and our how long there.

If you have increased line residual removal, you're gonna have the sludges gonna go up, and we're also gonna have continued uh production at the line.

But also if you have a wetter season, is where it is long, it takes longer for us to get those processes out.

So that changes the prices, and then you're also just gonna have the uh CPI increase.

So that's why you're seeing those increases with our capital with our sludges and you go down to supplies and materials as a whole, those are increased, but those are due to us actually starting to complete projects.

So you have some improvements out in well field, which are some pumps that are being replaced, but also we're starting to do improvements with our skater flood, which is where we're starting to increase uh the instrumentation that's received removed, which is also starting to harden our into our cybersecurity as you go through and you start to do those improvements.

So that's why you're starting to see some of those increases in our supplies.

Um, as you look at professional services, those are up as well.

But that is as we're going through these on those larger pumps that you have in our distribution system.

So on those two main pump systems, and then for utilities, these are up, they're not as up as we would like for them to meet still feel a slight delay in the AES and IGS billing, but we're hoping when we get to the next quarter of 2025, that first quarter full needs that we caught up to what we got in.

And you'll see the same thing in itself.

Okay.

And moving on to our sanitary fund in our sources and use this statement starting first with our courses for revenue overall 9% or 4.2 million when we compare 25 to 24.

Again, our two uh driving um revenue categories are from city customers and other jurisdictions, starting first with city customers, our largest revenue categories.

Um, only two percent above forecast.

When we look year over year, a 4.3% revenue increase of a little under a million.

That's very closely in line with our rate increases in the sanitary fund.

Sanitary utilities, sorry.

Uh revenues from other jurisdictions.

This follows a similar pattern as we saw on the water side.

Um certainly above budget forecast, uh, year over year a 10.9% increase of 1.8 million dollars, um, in part because of rate increases, but largely due to favorable bill timing and also increased consumption in certain accounting accounts.

Our other revenue was up almost 509,000 when we compare to 2024, and that's largely attributable to the revenues that we've started to realize from the RP project out of reclamation.

Director will get into that to a moment.

Other charges for services up 400 and almost 26,000, and that's due to higher BOD demand from our uh large industrial users.

Looking at our expenses or uses down 1.2% or a little under 500,000, um, due to just like we talked about before, that offset of capital equipment, as well as lower personnel and contracts and materials costs.

And um, as we always like to see, cash reserves were not required in Q for 2025.

I do want to sort of highlight, and our directors spoke to this um a little bit ago for utilities.

We focused, we had a short amount of time towards the end of the year to push out as many IGS payments as we could.

We focused first on our water fund because it'll be the bills.

Um, so we'll we're getting caught up with sanitary and we'll see that first quarter of this year.

Okay.

So when we ordered your actual revenue again, um, we were up as expected, which is going to be slowly here's the um increases that we saw of the 9.5%.

However, we know this is due to bill timing, and hopefully we'll see these revenue just in the next quarter of 2023.

Um we look at uh bill timing, you're gonna see that full of water, you're gonna see this on the city side, but also in other judiciations as well.

But we would like to note that on other pictures, there are some increases in usage as well.

When we look at our other revenue sources, we'd like to talk about the RG project, including great collaboration with our sustainability optic.

Although this is starting to show that it has probabilities, we want to make sure we caution that this is a very volatile market.

So although we are seeing profit now, it is being offset by the use of what we're purchasing for gas.

So we haven't had a full year, so we can't say if this is the trend we'll see, but we want to highlight this as some 325 or 2025 into 2026.

And then again, we have our other charges as well, which we look at our BOD and our PODs were higher, but this was offset by suspended solids.

This is great for our actual operations, but for our bottom line, there are no options.

But we are going to have some higher overtime usage because we still have to train the people as they come into the 24 hour operation.

So we're hoping that that overtime number starts to either decrease, or if we're talking about it's because we're doing projects in house.

Similar on the water side, you're gonna have on the sanitary side that we're starting to see a slowdown in our equipment as 2023.

We caught we got equipment in 2024, equipment came in and then 2025.

So we're hoping that it continues the trend, and when we've left it, and when we actually get our capital equipment as you go over to contracts and materials, those were lower, but a part of this is when you look at professional services.

You had um a decrease in some of the bill timing there.

Supplies and materials were down again, but a part of this is because our staff is able to optimize some of their chemical fees, so that's a good thing that that was done in utilities.

As we said, we're trying to catch up on actually paying those bills as we're starting to get those.

Okay, but this was offset by our sludge removal, which is similar to residuals on the water side.

So we had a very wet year last year.

As you remember, we had two weeks of just continuous rain.

When that happens, we have to actually send those residuals to adopt, and then we have tipping fees, which makes the cost higher, and then you're also just gonna have regular CPI increases as well.

And then you also had another offset on some security investments again.

We try to make sure that we're securing our facilities because these are part of our operation requirements.

So as we end up 2025 on both water and the sewer side, we performed the perspective.

We didn't have revenues for natural gas, but also our revenue sales were up as well.

Personnel costs on the water side were up, but we are continuing to fill positions on the sanitary side, they were lower.

But again, we're hoping that this is a continuation as the overtime numbers are to um contract.

The materials were up, and we should make our strides towards new projects, and a lot of this is related to some of our residual removals, our sledge removes, depending on which side of the drain we're on, but those continue to make sure that we are being able to fulfill our operational needs.

As also explained, we did not use our cash reserves, which again is showing that we are meeting our budgetaries.

And that is water for 2025.

Commissioner's any questions or comments.

Uh no questions, just some brief comments.

Also, I want to thank the water department for recently hosting me and uh deputy city manager Latin.

I just have a few quick uh things I want to just lift up.

Uh, really cool to see uh the profitability of the renewable gas project.

Uh remember it's approved, so it's really cool to see it actually saving the city money.

I'd be very interested to you know just continue to see the long-term profitability of it uh moving forward, and uh just want to say uh great to see the higher revenues uh in 2025.

So thanks.

Oh, good.

Uh I just want to echo my colleagues' comments.

Very excited about natural gas.

And actually, I'm curious if anyone else has started to ask about it.

We maybe calls maybe more trying to wonder if we would actually hear from not right now, but hopefully we will soon.

Okay, interesting.

All right, well, thank you.

If there's no other questions or comments, back to you, city manager.

If there's anything else, I don't believe we have anything else.

I just wanted to let you know, Commissioner, we did get um word that we diverted 776.

Oh, seven seventy hundred.

I said, well, yeah, I should 7,776 due to our electricity.

Thank you.

That's excellent.

Also, for the work.

Thank you all.

Thank you all out there.