ITEM 15 ATTACHMENT 1 - Laserfiche WebLink

each year, the program's fund balance is expected to go negative again in a few years. Staff is exploring options that will increase revenues to fully fund the Storm Drain operation. Service Level Changes from FY 2024/25 The proposed budget represents a culmination of several months of exhaustive efforts first identifying areas of potential service reductions and incorporating guidance and input from various stakeholders, including the City Council, Budget Advisory Committee, and the community. Given the magnitude of the projected structural deficit, to minimize the service impacts, staff took a balanced approach to utilize some one-time funding resources in combination with measured service reductions based on the City Council's recommendations. Below is a high-level summary of the reductions in the General Fund by program/service category, along with associated full-time equivalent (FTE) reductions, recommended by the City Council at the April 10, 2025 Budget Workshop. These reductions have been incorporated into the proposed operating budget. Other personnel adjustments in the General Fund include reclassifying some positions to better align staffing responsibilities. A key adjustment is the addition of an Economic and Business Development Manager in the renamed Community and Economic Development Department -this position will support strategic alignment of economic development programs with land use, zoning, and permitting process improvements, and enhance the profile of economic development as a priority, as directed by the City Council. Additional changes include the addition of a Management Analyst in the Human Resources Department to continue handling expanded labor relations responsibilities that are currently managed through a limited -term position, and a set of minor adjustments to reallocate some staffing hours to non -General Funds, as appropriate. To support the effective operation of the Water and Sewer utility programs, staff is recommending that those Enterprise Funds (not the General Fund) support new positions to meet the growing needs of both programs, including environmental and program compliance requirements, operation, and capital infrastructure improvement needs. A total of 6 new positions (3 in Water and 3 in Sewer) are recommended to be added in FY 2025/26 and additional 5 new positions in FY 2026/27 in Water to provide adequate staffing resources for expanding capital program obligations based on the recently completed Water System Management Plan, as well as operational needs. 13