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The 2023-25 budget adopted by the City Council on June 6, 2023, includes funding to develop a Citywide Asset Management Plan. The plan will aid in identifying the City's costs for maintaining City infrastructure to meet the desired level of service. Building and maintaining reliable infrastructure will help the City reduce costs in the long run because deferred maintenance will increase costs, which creates a debt burden on the community. The Asset Management Plan will also bring the financial needs and impacts into greater focus. History of City Revenue Measures It is common for cities to raise revenues to support ongoing services and programs and fund new and existing capital projects through voter-approved revenue and bond measures (e.g., taxes and General Obligation bonds). Unlike most other communities, the City has not attempted to pass a local revenue measure since incorporation although there have been discussions about potential tax and bond measures in the past. Over the years, the City Council has directed significant investments to construct and maintain community infrastructure. As the improvements and facilities age, new investments are important to maintain assets in a state of good repair or replace them at appropriate intervals. The Government Finance Officers Association (GFOA) recommends proactive asset management and promotes adequate investment in capital renewal and replacement and necessary expenditure levels for maintenance. As the GFOA stated in its Capital Asset Management guidelines, as the physical condition of the asset declines, deferring maintenance and/or replacement could increase long- term costs and liabilities. Ultimately, deferred maintenance will turn into debt that will burden current and future residents and businesses. DISCUSSION Well-maintained infrastructure and public facilities are critical to a livable, vibrant community. Investments in community-owned assets like water, sewer, and storm drain infrastructure, streets and roads, parks, and public facilities are needed to sustain the service levels expected by residents and businesses. In addition, new needs reflect changing circumstances and priorities, including human services, affordable housing, modern public facilities (office, police station, fire stations), public safety vehicles, etc. The City has an excellent reputation, ranking as one of the safest cities in the nation. The City also has a high resident satisfaction rating. A recent community survey shows that 91% of the residents ranked the quality of life as excellent or good. To maintain a high quality of life for all residents now and into the future, investments in community infrastructure and additional resources to support ongoing services and programs are critical. Prioritizing Community Needs The recent community survey and outreach for the citywide strategic plan indicate that residents' top priorities include infrastructure and water quality, public safety and fire protection, housing, street maintenance, emergency response, keeping city buildings in Page 3 of 7