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HomeMy WebLinkAboutCOUNCIL - COMPLETE AGENDA - 10/14/2025City of Fort Collins Page 1 of 2 City Council Work Session Agenda October 14, 2025 at 6:00 PM Jeni Arndt, Mayor Emily Francis, District 6, Mayor Pro Tem Susan Gutowsky, District 1 Julie Pignataro, District 2 Tricia Canonico, District 3 Melanie Potyondy, District 4 Kelly Ohlson, District 5 Council Information Center (CIC) 300 Laporte Avenue, Fort Collins Cablecast on FCTV Channel 14 on Connexion Channel 14 and 881 on Comcast Carrie Daggett Kelly DiMartino Delynn Coldiron City Attorney City Manager City Clerk CITY COUNCIL WORK SESSION 6:00 PM Language Services are available for this meeting. A) CALL MEETING TO ORDER B) ITEMS FOR DISCUSSION 1. Staff Report: November 2025 Election Voter Information Guide Highlight The purpose of this item is to share the November 2025 Election Voter Information Guide which will be available online to the community. 2. Southeast Community Center Update The purpose of this item is to provide an update on the Southeast Community Center (SECC), including the current project scope, budget, proposed funding stack with trade-offs, and next steps. More than a decade in the making, the SECC will provide southeast Fort Collins with a community recreation center and library, implemented in partnership with Poudre Libraries and Poudre School District as the final project of the 2015 Community Capital Improvement Program tax initiative. Additional materials will be provided on Monday October 13, 2025. 3. 2026 Budget Revision Discussion Follow-Up and Utilities 2026 Budget Revisions & Review The purpose of this item is to familiarize and seek feedback from Council on the City Manager’s recommended revisions to the 2026 Budget. Based on direction from Council, the 2026 Budget Revisions will be combined with the previously adopted 2025-2026 Biennial Budget. The 2026 Annual Appropriation Ordinance is scheduled for 1st Reading on November 3. This item includes follow-up from the first work session on the 2026 Budget Revisions, as well as review of two 2026 Utilities revisions proposed for inclusion in the 2026 Budget. There will also be a review of the utility rates for Council consideration planned for adoption on November 3. C) ANNOUNCEMENTS Page 1 City of Fort Collins Page 2 of 2 D) ADJOURNMENT Upon request, the City of Fort Collins will provide language access services for individuals who have limited English proficiency, or auxiliary aids and services for individuals with disabilities, to access City services, programs and activities. Contact 970.221.6515 (V/TDD: Dial 711 for Relay Colorado) for assistance. Please provide advance notice. Requests for interpretation at a meeting should be made by noon the day before. A solicitud, la Ciudad de Fort Collins proporcionará servicios de acceso a idiomas para personas que no dominan el idioma inglés, o ayudas y servicios auxiliares para personas con discapacidad, para que puedan acceder a los servicios, programas y actividades de la Ciudad. Para asistencia, llame al 970.221.6515 (V/TDD: Marque 711 para Relay Colorado). Por favor proporcione aviso previo. Las solicitudes de interpretación en una reunión deben realizarse antes del mediodía del día anterior. Page 2 File Attachments for Item: 1. Staff Report: November 2025 Election Voter Information Guide Highlight The purpose of this item is to share the November 2025 Election Voter Information Guide which will be available online to the community. Page 3 City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 1 October 14, 2025 WORK SESSION AGENDA ITEM SUMMARY City Council PRESENTER Delynn Coldiron, City Clerk SUBJECT FOR DISCUSSION Staff Report: November 2025 Election Voter Information Guide Highlight EXECUTIVE SUMMARY The purpose of this item is to share the November 2025 Election Voter Information Guide which will be available online to the community. Page 4 Item 1. File Attachments for Item: 2. Southeast Community Center Update The purpose of this item is to provide an update on the Southeast Community Center (SECC), including the current project scope, budget, proposed funding stack with trade-offs, and next steps. More than a decade in the making, the SECC will provide southeast Fort Collins with a community recreation center and library, implemented in partnership with Poudre Libraries and Poudre School District as the final project of the 2015 Community Capital Improvement Program tax initiative. Additional materials will be provided on Monday October 13, 2025. Page 5 City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 1 October 14, 2025 WORK SESSION AGENDA ITEM SUMMARY City Council STAFF LeAnn Williams, Director, Recreation Dean Klingner, Community Services Director SUBJECT FOR DISCUSSION Southeast Community Center Update EXECUTIVE SUMMARY The purpose of this item is to provide an update on the Southeast Community Center (SECC), including the current project scope, budget, proposed funding stack with trade-offs, and next steps. More than a decade in the making, the SECC will provide southeast Fort Collins with a community recreation center and library, implemented in partnership with Poudre Libraries and Poudre School District as the final project of the 2015 Community Capital Improvement Program tax initiative. Additional materials will be provided on Monday October 13, 2025. Page 6 Item 2. File Attachments for Item: 3. 2026 Budget Revision Discussion Follow-Up and Utilities 2026 Budget Revisions & Review The purpose of this item is to familiarize and seek feedback from Council on the City Manager’s recommended revisions to the 2026 Budget. Based on direction from Council, the 2026 Budget Revisions will be combined with the previously adopted 2025-2026 Biennial Budget. The 2026 Annual Appropriation Ordinance is scheduled for 1st Reading on November 3. This item includes follow-up from the first work session on the 2026 Budget Revisions, as well as review of two 2026 Utilities revisions proposed for inclusion in the 2026 Budget. There will also be a review of the utility rates for Council consideration planned for adoption on November 3. Page 7 City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 7 October 14, 2025 WORK SESSION AGENDA ITEM SUMMARY City Council STAFF Caleb Weitz, Chief Financial Officer Kelly DiMartino, City Manager Joe Wimmer, Utilities Finance Director Randy Reuscher, Utilities Rates Manager SUBJECT FOR DISCUSSION 2026 Budget Revision Discussion Follow-Up and Utilities 2026 Budget Revisions & Review EXECUTIVE SUMMARY The purpose of this item is to familiarize and seek feedback from Council on the City Manager’s recommended revisions to the 2026 Budget. Based on direction from Council, the 2026 Budget Revisions will be combined with the previously adopted 2025-2026 Biennial Budget. The 2026 Annual Appropriation Ordinance is scheduled for 1st Reading on November 3. This item includes follow-up from the first work session on the 2026 Budget Revisions, as well as review of two 2026 Utilities revisions proposed for inclusion in the 2026 Budget. There will also be a review of the utility rates for Council consideration planned for adoption on November 3. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED What questions or feedback does Council have on the City Manager’s recommended revisions to the 2026 Budget? BACKGROUND / DISCUSSION OVERVIEW: The 2026 Budget Revisions include both reductions to 2026 ongoing expenses within the Governmental Funds and additional budget revisions for consideration. The first Council work session on September 23 covered the economic conditions being experienced by the City. The uncertainty at all levels of government has resulted in lower forecasted growth in ongoing Sales Tax collections. Additional revenue challenges impacting the General Fund were also reviewed. On the expense side, although the rate of inflation has decreased closer to the long-term goals of the Federal Reserve, the increasing prices over the last few years have not subsided. The City also has expense challenges in personnel costs, primarily from lower than expected turnover than had been planned in the budget. This is very good from a staff and service delivery perspective, but previous financial assumptions need to be revised to keep expenditures within the Council approved spending limits. Although there have been some positive indicators, now the City will need to use the 2026 revision process to address these revenue and expense challenges. Page 8 Item 3. City Council Work Session Agenda Item Summary – City of Fort Collins Page 2 of 7 2026 Utilities Budget Revisions #1 - Halligan Environmental Mitigation Credits City’s Water Utility requests an additional appropriation of $10,357,500 in the Water Utility Fund to purchase needed stream credits and wetland credits (collectively referred to as environmental mitigation credits) in support of City’s Water Utility receiving a finalized mitigation plan by the United States Army Corp of Engineers (USACE). The Halligan Water Supply Project will result in impacts to both wetlands and streams. Pursuant to requirements of the Clean Water Act, City’s Water Utility is required to undertake mitigation. Among the project mitigation measures that were proposed, USACE directed the City to purchase environmental mitigation credits from an accredited bank. Required wetlands and stream credit amounts will be part of the finalized mitigation plan that City’s Water Utility is currently working on with US ACE. The finalized mitigation plan is required to be approved by USACE for commencement of construction of the Halligan Water Supply Project. The USACE prefers mitigation through bank credits as these credits are backed by legal instruments that ensure long-term protection and monitoring. City’s Water Utility entered into a mitigation credit reservation and purchase agreement in June 2024 associated with the North Fork Poudre Mitigation Ba nk. The 2024 agreement secured 19.37 acres of wetland credits and 1,220 stream credits and will be revised up to include a total of 19.9 wetland credits and 1,514 stream credits. The City has spent $1,471,340 to date, with an additional $6,931,660 to be spent from December 2025 through 2027 dependent on timing of credit releases for the North Fork Bank. While City’s Water Utility anticipated environmental mitigation credits as part of the finalized mitigation plan approved by USACE, the proposed quantity has increased substantially due to recent determinations by USACE that the original preservation/conservation stream mitigation plans are no longer sufficient to meet current federal requirements. In response to the additional stream credit requirements, discussions are underway with the Moraine Bank in Rocky Mountain National Park, and other potential banks on the North Fork, to purchase additional stream credits. The Water Utility is intending to be under contract prior to 2025 year-end, securing upwards of 6,834 in stream credits, totaling an estimated $14,020,350. To keep the dam design work and environmental mitigation projects on schedule, the Water Utility plans to spend the project’s remaining $7.4 million unencumbered balance by the end of Q2 2026. An additional $10,357,500 is needed to meet 2026 obligations in purchasing environmental mitigation credits. In July 2025, the City submitted a request for $100 million under Colorado Water Conservation Board’s Water Project Loan Program in support of funding the Halligan Water Supply Project. Provided City Water Utility is successful in the pursuit of $100 million under the Water Project Loan Program, the earliest funds would be available for appropriation by City Council is August 2026. The Water Fund 2025 reserves are available for the $10,357,500 appropriation in advance of loan acceptance. Customer Information System Operational Costs Utilities requests a 2026 budget revision of $702,480 to support 2026 operational costs for the existing Utilities Customer Information System (CIS) and billing software. The new CIS continues to be developed with a new go-live date of May 22, 2026. Due to the project extension, the existing CIS and billing software needs to be extended through 2026. The $702,480 provides funding for unanticipated operational costs of the legacy CIS and associated billing software into 2026. The software system supports billing of Utility customers and tracking of customer payments and amounts due. Page 9 Item 3. City Council Work Session Agenda Item Summary – City of Fort Collins Page 3 of 7 2026 Utilities Budget Revisions #2 - Halligan Environmental Mitigation Credits City’s Water Utility requests an additional appropriation of $10,357,500 in the Water Utility Fund to purchase needed stream credits and wetland credits (collectively referred to as environmental mitigation credits) in support of City’s Water Utility receiving a finalized mitigation plan by the United States Army Corp of Engineers (USACE). The Halligan Water Supply Project will result in impacts to both wetlands and streams. Pursuant to requirements of the Clean Water Act, City’s Water Utility is required to undertake mitigation. Among the project mitigation measures that were proposed, USACE directed the City to purchase environmental mitigation credits from an accredited bank. Required wetlands and stream credit amounts will be part of the finalized mitigation plan that City’s Water Utility is currently working on with US ACE. The finalized mitigation plan is required to be approved by USACE for commencement of construction of the Halligan Water Supply Project. The USACE prefers mitigation through bank credits as these credits are backed by legal instruments that ensure long-term protection and monitoring. City’s Water Utility entered into a mitigation credit reservation and purchase agreement in June 2024 associated with the North Fork Poudre Mitigation Ba nk. The 2024 agreement secured 19.37 acres of wetland credits and 1,220 stream credits, and will be revised up to include a total of 19.9 wetland credits and 1,514 stream credits. Based on timing over proposed credit releases, the City has spent $1,471,340 to date, with an additional $6,931,660 to be spent from December 2025 through 2027. While City’s Water Utility anticipated environmental mitigation credits as part of the finalized mitigation plan approved by USACE, the proposed quantity has increased substantially due to recent determinations by USACE that the original preservation/conservation stream mitigation plans are no longer sufficient to meet current federal requirements. In response to the additional stream credit requirements, discussions are underway with the Moraine Bank in Rocky Mountain National Park, and other potential banks on the North Fork, to purchase additional stream credits. The Water Utility is intending to be under contract prior to 2025 year-end, securing upwards of 6,834 in stream credits. To keep the dam design work and environmental mitigation projects on schedule, the Water Utility plans to spend the project’s remaining $7.4 million unencumbered balance by the end of Q2 2026. An additional $10,357,500 is needed to meet 2026 obligations in purchasing environmental mitigation credits. In July 2025, the City submitted a request for $100 million under Colorado Water Conservation Board’s Water Project Loan Program in support of funding the Halligan Water Supply Project. Provided City Water Utility is successful in the pursuit of $100 million under the Water Project Loan Program, the earliest funds would be available for appropriation by Council is August 2026. The Water Fund 2025 reserves are available for the $10,357,500 appropriation in advance of loan acceptance. Customer Information System Operational Costs Utilities requests a 2026 budget revision of $702,480 to support 2026 operational costs for the existing Utilities Customer Information System (CIS) and billing software. The new CIS continues to be developed with a new go-live date of May 22, 2026. Due to the project extension, the existing CIS and billing software needs to be extended through 2026. The $702,480 provides funding for unanticipated operational costs of the legacy CIS and associated billing software into 2026. The software system supports billing of Utility customers and tracking of customer payments and amounts due. The individual Utilities enterprise funds will cover their respective shares of the software costs through a transfer to the internal Customer Service & Administration Fund. Page 10 Item 3. City Council Work Session Agenda Item Summary – City of Fort Collins Page 4 of 7 2026 Utility Rates The revenues needed to support the ongoing operation and maintenance costs of providing each of the four utilities services to customers are collected through monthly utility rates. As costs change over time, it is necessary to adjust rates to reflect those changes. Long-term financial planning is important to ensure revenues are adequate and reserves are available to maintain and replace infrastructure in a timely fashion to continue providing high quality and reliable services for our customers. Frequent review and updating of the cost-of-service allocation models behind the monthly utility rates maintains equity across rate classes and helps to reduce the impact of higher utility rates on customers by providing gradual, modest rate adjustments over time rather than less frequent and larger rate adjustments. These actions help ensure the delivery of current and future utility services occurs in a fiscally responsible manner, balancing both costs and levels of service with affordability and prudent planning and investments. There are no proposed changes from what was previously planned and adopted in the 2026 fiscal plan and included in the 2025-26 Budget. A summary of the proposed rate increases for the four utility services are shown in the table below. Electric Staff are proposing a 6% retail rate increase for the Electric Fund in 2026. This increase is driven by a combination of an increase in wholesale electric expenses in 2026, as well as an increase to cover distribution operating and maintenance costs and investments in capital projects. Roughly two-thirds of costs incurred each year to provide electric service are attributable to wholesale expenses, while the other one-third is attributable to costs related to operating and maintaining the distribution system. The portion of the proposed 6% increase that is not applied to wholesale cost increases will be used to help fund distribution system needs. There are multiple capital projects necessary to meet future needs, some of which include feeder cable and transformer replacements, streetlighting upgrades, distribution automation, and demand response technology upgrades. The largest expense for the electric fund is wholesale power costs. Platte River Power Authority (PRPA) is planning to increase their wholesale blended rate ($/MWh) by 6.3% in 2026 and is forecasting 7.5% wholesale rate increases for 2027-28. There is variability in how the increase is applied to individual component charges. Fort Collins Utilities participates in the Colorado Association of Municipal Utilities (CAMU) survey each year. Below are the residential electric rate comparisons for the electric utilities in Colorado that responded to the survey. Fort Collins is shown in the maroon-colored bar within the graph. Based on the July 2025 Page 11 Item 3. City Council Work Session Agenda Item Summary – City of Fort Collins Page 5 of 7 survey, Fort Collins Utilities came in towards the lower end of average electric cost within the state, assuming 700 kWh of consumption in a month, at $100.28, or 12th lowest overall of all responses. Water Staff are proposing a 9% retail rate increase for the Water Fund in 2026. Water rate increases are primarily driven by the cost of capital investment, particularly construction of the Halligan Water Supply Project and maintaining replacement of the water distribution system. In the 2026 budget, capital projects account for 38% of the total W ater Fund expenditures. This percentage is expected to increase in the coming years and is a significant driver for future rate increases in the Water Fund. Debt financing for the Halligan Water Supply Project will be the major component impacting substantial water rates over the next 3-5 years while the project progresses towards and starts construction. Development of the Water Fund’s comprehensive Capital Improvement Plan is underway and will inform a long-term rate forecast in advance of the 2027-28 budget process. Wastewater Staff are proposing an 8% retail rate increase for the Wastewater Fund in 2026. In addition to rate increases needed for ongoing operational inflationary pressures, the Drake Water Reclamation Facility (DWRF) recently completed a comprehensive condition assessment and is in need of significant capital investment. The report indicates that 39% of the plant is beyond it’s useful life, and 45% of the plant is in fair condition The upcoming 10-year Capital Improvement Plan may include plans for a large revenue bond debt issuance needed for reconstruction of the DWRF Preliminary Treatment Facility, and the combined Wastewater-Water Quality Laboratory Project. Page 12 Item 3. City Council Work Session Agenda Item Summary – City of Fort Collins Page 6 of 7 Stormwater Staff are proposing a 6% retail rate increase for the Stormwater Fund in 2026. The Oak Street Stormwater Improvement Project revenue bond issuance of $40M in 2023 increased debt service payments for this fund. Additional capital improvement budget capacity is being created to continue capital replacement and improvements to the stormwater infrastructure system. Bill Impacts and Front Range Comparisons The table below shows the impacts of the proposed rate change to the average residential monthly bill. Under the proposed rate changes, a residential customer’s total utility bill, for a customer receiving all four municipal utility services, would increase by 7.1%, or $13.49 per month. The table below compares typical residential electric, water, wastewater, and stormwater monthly utility bills across neighboring utilities along the Front Range, based on proposed 2026 rate adjustments and charges. In total, Fort Collins Utilities comes in the lowest at $230.26 for all four services. With proposed increases for 2026, Fort Collins will remain the lowest overall, as there are known increases proposed amongst the other bordering utilities for 2026, with some of them being substantially higher than the percentage increases proposed for customers within our community. Note that community comparisons use different usage thresholds than the Fort Collins customer averages shown in the bill impact table above. Page 13 Item 3. City Council Work Session Agenda Item Summary – City of Fort Collins Page 7 of 7 CITY FINANCIAL IMPACTS The 2026 City Manager’s Recommended Budget includes these proposed increases in revenues available for the budget. The electric increase would offset increased wholesale costs for 2026, as well as contribute to increasing distribution system operating and maintenance and capital costs. The water, wastewater, and stormwater increases would contribute to operating and maintenance costs, as well as assisting with future debt issuances for large capital projects. BOARD / COMMISSION / COMMITTEE RECOMMENDATION Review of the proposed changes to the Utilities electric rates are planned for discussion with the Energy Board on October 9, 2025. Review of the proposed changes to the Utility water, wastewater, and stormwater rates are planned for the Water Commission on October 16, 2025. PUBLIC OUTREACH The required electric outside city limit postcard will be mailed in early October and a notice was posted in the Coloradoan. Rates and fee presentations will be shared at the Business Accounts meeting for all commercial customer accounts on November 18, 2025. An annual rate brochure will go out to customers in late November or early December, along with updated information posted to the utility website. NEXT STEPS First reading of the 2026 Annual Appropriations is scheduled for Monday, November 3 (due to elections on November 4). Second reading is then scheduled for November 18. ATTACHMENTS 1. Presentation Page 14 Item 3. Headline Copy Goes Here Caleb Weitz Joe Wimmer Randy Reuscher Council Work Session 2026 Budget Revisions 10-14-2025 Page 15 Item 3. Headline Copy Goes Here 2 Agenda •October 23 work session follow up •$22k of reduction alternatives for immigration/legal defense funds •Utilities update of 2026 Revisions Page 16 Item 3. Headline Copy Goes HereFollow up from the October 23 work session 3 Highlights of the questions and requests included in Council’s Thursday Pack materials on October 9 include: •Clarity on positions in the hiring freeze vs those proposed for elimination,including detail on positions in Sustainability Service and Code Compliance in Community Development •Additional information on the Camera Radar Red Light program •Comparative staffing data with S&U Tax Audit programs along the Front Range •Updated chart on Digital Inclusion reserve estimates to cover the 2026 shortfall of the Grocery Tax Rebate program •Additional information about the Poudre Flows offer and why staff believes the delay in the planned 2026 funding is not an issue for the City •Updated information on the community impacts from the proposed reductions in the 2026 Budget Revisions Page 17 Item 3. Headline Copy Goes HereAlternative Reduction Opportunities -$22k 4 •Available 2026 Digital Equity revenue ̵Impact: No impact to the projected positive cash balance in the Digital Equity Reserve in 2030 •Decrease to Bridge Asset Management Program ̵Impact: Decreased ability to respond to unforeseen repairs and maintenance needs; and lowered ability to advance design for scheduled replacements •Decrease in Parks Operations and Programming ̵Impact: Deeper cuts to currently proposed reductions to 4th of July by eliminating City programming and/or partial closures of bathrooms in neighborhood parks Page 18 Item 3. Headline Copy Goes Here Utilities 2026 Budget Revisions Page 19 Item 3. Headline Copy Goes Here 6 Direction Sought What questions does City Council have regarding the proposed 2026 Utilities budget and revisions?01 Page 20 Item 3. Headline Copy Goes Here 72026 Light & Power Budget PRPA Wholesale •6.3% Increase Capital Investment •Cable Replacement •Transformers Operational Technology •Distributed Energy Resource Management (DERMS) Purchase Power PRPA 66% Capital & Asset Management 10% L&P Operations 7% PILOTs 5% Cust Serv & Admin 4% Energy Services 4% Internal Transfers Out 2%Purchase Power Community Renewables 2% Other Misc 1% 2026 Budget -$183.5M Page 21 Item 3. Headline Copy Goes Here 82026 OneWater Budget Capital Investment •Halligan Water Supply Project •Water Main Replacement Program •Drake Water Reclamation Facility Projects •OneWater Laboratory Design Operations •OneWater Operator & Engineering •GIS Utility Network Capital & Asset Management 38% Plant Operations 14% Cust Serv & Admin 14% Transmission & Collection 12% Planning & Sciences 8% PILOTs 4% Engineering 3% Internal Transfers Out 6%Other Misc 1% 2026 Budget -$103.7M Page 22 Item 3. Headline Copy Goes Here 92026 Budget Revisions Halligan Project Mitigation Credits $10,357,500 Wetland Credits Requirement (17.94 acres); est. $3.1M Stream Credits Requirement (8,348 ft); est. $19.3M Poudre North Fork Mitigation Bank •Under contract •19.9 wetland credits •1,514 stream credits RMNP Moraine Mitigation Bank •6,834 stream credits needed •Contract pending Page 23 Item 3. Headline Copy Goes Here 102026 Budget Revisions Halligan Project Mitigation Credits: Timeline •Mitigation plan must be approved before construction •Record of Decision (ROD) expected:August 2026 •Pending CWCB Water Project Loan ($100M), appropriation of Water Fund Reserves Page 24 Item 3. Headline Copy Goes Here •Operational budget needed for continuing legacy systems until go-live •CIS replacement go-live date May 2026 2026 Budget Revisions 11 Customer Information System (CIS) Operational Extension $702,480 Page 25 Item 3. Headline Copy Goes Here 122026 Utility Rates Utility 2026 Rate Increase Electric 6% Water 9% Wastewater 8% Stormwater 6% 2025-2026 City Manager's Recommend BudgetPage 26 Item 3. Headline Copy Goes Here 132026 Utility Rates Page 27 Item 3. Headline Copy Goes Here 142026 Utility Rates Page 28 Item 3. Headline Copy Goes Here 152026 Utility Rates Page 29 Item 3. Headline Copy Goes Here 16Utilities Affordability Assistance Retrofit Programs •Larimer County Conservation Corps Water and Energy Program (LCCC) •Colorado Affordable Residential Energy (CARE) Reduced Rates •Income-Qualified Assistance Program LEAP & IQAP One-Time Payment Assistance •Payment Assistance Fund •Utilities Emergency Fund Outreach •Water Conservation resources •Energy Services programs •Utilities Insights Newsletter •Direct customer engagement Page 30 Item 3. Headline Copy Goes Here 17Utilities Outlook & Initiatives 2027/28 Budget Preparation •Capital Planning •Enterprise Project Management Office (EPMO) •Strategic Asset Management Plans •Asset Replacement Analysis •Major Projects •Halligan Water Supply Project •Drake Water Reclamation Facility Preliminary Treatment •OneWater Quality Lab •Drake Substation •PRPA Integrated Resource Plan •Long-Term Financial Modeling •Capital Financing •Long-Term Rate ScenariosPage 31 Item 3. Headline Copy Goes Here 18 Direction Sought What questions does City Council have regarding the proposed 2026 Utilities budget and revisions?01 Page 32 Item 3.