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HomeMy WebLinkAbout2025/06/19 - Special Meeting - Budget Study Session CITY COUNCIL VISION STATEMENT “Our Vision is to create an equitable, sustainable, and vibrant city, rich in opportunity for all to thrive by building on our foundation and success as a world class community.” Page 1 CITY OF RANCHO CUCAMONGA SPECIAL MEETING AGENDA CITY COUNCIL/FIRE PROTECTION DISTRICT June 19, 2025 – 4:00 PM Council Chambers 10500 Civic Center Drive Rancho Cucamonga, CA 91730 CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL: Mayor Michael Mayor Pro Tem Kennedy Council Members Hutchison, Scott and Stickler A. PUBLIC COMMUNICATIONS This is the time and place for the general public to address the City Council on any item listed on the agenda. State law prohibits the City Council from addressing any issue not previously included on the Agenda. The City Council may receive testimony and set the matter for a subsequent meeting. Comments are to be limited to three (3) minutes per individual. For City Council Rules of Decorum refer to Resolution No. 2023-086. B. ITEMS OF DISCUSSION B1. Discussion and Consideration of Proposed Budgets for Fiscal Year 2025/26. (Verbal Report) (Document is available for review at City Hall and https://www.cityofrc.us/your-government/budget) (CITY/FIRE) C. ADJOURNMENT CERTIFICATION I, Linda A. Troyan, MMC, City Clerk Services Director of the City of Rancho Cucamonga, or my designee, hereby certify under penalty of perjury that a true, accurate copy of the foregoing agenda was posted at least twenty-four (24) hours prior to the meeting per Government Code 54954.2 at 10500 Civic Center Drive, Rancho Cucamonga, California and on the City's website. LINDA A. TROYAN, MMC CITY CLERK SERVICES DIRECTOR If you need special assistance or accommodations to participate in this meeting, please contact the City Clerk Services Department at (909) 774-2023. Notification of 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility. Listening devices are available for the hearing impaired.  CITY COUNCIL VISION STATEMENT “Our Vision is to create an equitable, sustainable, and vibrant city, rich in opportunity for all to thrive by building on our foundation and success as a world class community.” Page 1 CITY COUNCIL VISION STATEMENT “Our Vision is to create an equitable, sustainable, and vibrant city, rich in opportunity for all to thrive by building on our foundation and success as a world class community.” Page 1 Fiscal Year 2025/26 Proposed Budget Study Session June 19, 2025 •Recap of Last Fiscal Year •State, Regional, and Local Economic Outlook •Housing Outlook •Operating Budget Overview •Staffing & Personnel •Workgroup and Department Overview •Infrastructure & the Major Projects Program (MPP) •Special Districts •Update on EIFD, LMD-1, and PD-85 Budget Presentation Overview The City navigated a series of internal and external transitions. Recap of Last Fiscal Year NOW Looking Back Going Forward The City prepares for a “Year of Transitions” and new opportunities for navigating change and pursuing consistency. Challenges included uncertainties in the economic and political landscapes, internal turnover, and new systems. Earlier this year, the City Council adopted the following goals: •By the end of October 2025, bring a project to add lights to the Garcia Sports field to the City Council for consideration. •By the end of December 2025, present to the City Council a plan and implementation strategy for workforce development pathways into public service. •By the end of December 2025, present to the City Council concept plans to modernize and expand the public safety facilities at the Civic Center. •By end of June 2026, complete construction of Phase 2 of ATMS. •By end of June 2026, finalize the site location and high-level concept design details for the second RCMU substation. Update on City Council Goals for 2025 FY 2025/26 Budget Message State, Regional, and Local Economic Outlook State of California Economic Outlook •Despite the initial outlook for the proposed budget showing a small surplus, the LAO debates that revenue projections could be overly- optimistic. •The impact of tariffs at the federal level remain to be seen, but are anticipated to have an adverse effect on revenues. Regional Econom ic Indicators •Uncertainty at the Federal level impacts the regional outlook as well. •Despite the uncertainty, the economic data suggests a cooling, but strong economy. •This uncertainty could bring about policy choices that may trigger a downturn, but this is difficult to anticipate. Economic Indicators That said, some indicators indicate a stronger economy in 2025, with inflation declining and interest rates, though still higher than previous years, also declining slightly. Unemployment Furthermore, unemployment has also seen some lower rates throughout the United States and the State of California. With this, the nation, state, and region have all seen solid gains in earnings across several years, including for those with lower education levels. Household Income After adjusting for taxes, the poverty rate is lower than ever. However, an area of concern is the labor force, especially in California. Despite higher incomes, the housing rate raises concerns for the labor force remaining in California. Employment and Labor Force Despite this, the Inland Empire is one of few areas experiencing growth. Compared to the rest of California, housing prices are more affordable and new construction continues to grow. As a result, the Inland Empire drives a reasonable share of the California economy. Employment and Labor Force The labor force gains have been across many age groups, except for younger age groups. Other Economic Threats Outside of labor markets, national financial threats also impact projections. The U.S. trade deficit continues to grow due to increased reliance on foreign goods. These effects trickle down to a State level, and thus can impact revenue and spending activities at regional and local levels. Local Economy Despite these influences, the outlook at the local level is more positive, especially as population in the region continues to increase. Local Economy Rancho Cucamonga continues to grow, though at slower rates compared to other local jurisdictions. Local Economy Rancho Cucamonga also continues to experience lower than average unemployment rates, and the lowest of the larger cities in the region. Local Economy Logistics jobs remain stronger than others throughout the region, which could be impacted by further tariff activities in the nation. Furthermore, the employment diversity is positive. Local Economy As a result, the Inland Empire is now a significant metropolitan statistical area. Local Economy Rancho Cucamonga continues to show decent employment growth compared to the region, and much higher growth than the State. Rancho Cucamonga Economic Sectors Rancho Cucamonga has a diversified economy 58% of the City’s employment is •Administrative support, •Restaurant/hotel, •Government, •Retail trade, and •Manufacturing Employment Sectors These sectors are showing growth over the last few years. Employment Sectors With the future high-speed rail efforts in the City, this is expected to grow even more in the future. Employment vs. Housing Despite the growth, there remains a persistent gap between households in the City and employment in the City. This is largely due to the strong commuter workforce throughout the City. Employment vs. Housing Significant housing costs also drive this force. Despite appreciating prices, the increases in mortgage interest rates drive higher costs throughout the City. FY 2025/26 Budget Message Housing Outlook Housing Despite increasing prices, Rancho Cucamonga remains an attractive place to live with the strong schools, high levels of public safety, and wide ranging amenities. Housing The City maintained a high number of completed residential units throughout 2024. Finalized (Completed) Residential Units by Year Local Economy - Housing For-sale single-family homes in Rancho Cucamonga remain a rare commodity. Multi-family housing complexes therefore remain a popular option in the City. As a result, average rents remain higher than the Countywide average. Local Economy - Housing While activity slows, multiple multi- family complex are coming online as older approved plans are now being built. As of this presentation, there are: •248 units under construction •2,506 approved units expected to start construction within a few years •3,042 units going through approval Residential Development Activity FY 2025/26 Budget Message Operating Budget Overview Operating Budget Operating Budget At-A-Glance: •Operating Budget increased by $6.2 million (3%). •City operating budget includes a $2.5 million contribution to the Capital Reserve fund. •Fire District's share decreased slightly by $504,000 (0.5%) and includes facility improvements to several Fire Stations. •Library Fund's share increased by $157,000 (2.61%) due to modest growth in staffing and professional services. Operating Budget General Fund – Top Seven Revenues General Fund – Sales Tax Sales Tax and Revenue: •Of the 7.75% sales tax collected in the City, only a small portion is received by the City. •The remainder is distributed between the County, the State, and other local purposes. •The City does not currently assess additional sales taxes or use taxes, unlike many neighboring cities. General Fund – Sales Tax Sales Tax and Revenue: •Sales Tax is the City's primary revenue source. •Estimated to be $42.1 million, a 4.7% increase. •Victoria Gardens contributes approximately 20% of sales tax. •Rancho Cucamonga ranks as an average sales tax performer compared to other local jurisdictions. General Fund – VLF/In -Lieu VLF and Property Tax In-Lieu of VLF: •Estimated to be $27.9 million, representing a 5% increase. •Property tax valuation growth results in increased revenue overall. •Expected to remain a reliable and growing revenue source for Rancho Cucamonga. General Fund – Property Tax Property Tax and Revenue: •Property tax are estimated to be $11.78 million, about $74,000 less than prior year. •Though home prices climb, higher interest has an impact on sales. Modest increases in valuation are offset by decreases in property transfer tax (directly resulting from lower sales). * includes property tax transfer tax General Fund – Property Tax Rising home prices and persistently high interest rates have led to a significant drop in full -value home sales. This decline reduces immediate revenue from property transfer tax, and also slows long-term growth in assessed property -values. General Fund – Franchise Fees Franchise Fee Revenue: •Estimated to be $10.56 million, a 7.42% increase. •Franchise fees are affected by changes in commodity prices and rate increases. •Despite fluctuations, franchise fees remain an important revenue source for the City. General Fund – Transient Occupancy Tax Transient Occupancy Tax: •With the passage of Measure Q in November 2024, the TOT rate increased from 10% to 12%. •In the upcoming fiscal year, TOT revenues are anticipated to equal $7.0 million, a large increase from the prior year due to this increase. * In FY 2020/21 , TOT revenues declined sharply as a result of the COVID-19 Pandemic General Fund – Business Licenses Business License Revenue: •Estimated to increase by $108,250, or 3%. •This increase reflects continued improvement to Rancho Cucamonga’s thriving business environment and ongoing efforts to support economic development. General Fund – Development Fees Development Fees: •Estimated to increase to $5.9 million, a 5.4% increase. •Driven by anticipated growth in mixed-use projects, large distribution centers, and overall development around the HART district. •Reflects the important impact the City’s revised General Plan had on ensuring strong economic desirability. General Fund Reserves and Fiscal Discipline: •The City has not utilized any reserves for operations since the loss of the Redevelopment Agency in FY 2010-11. •In FY 2020/21, strong expenditure savings allowed for a balanced budget without utilizing reserves as anticipated. •In FY 2025/26, the City anticipates contributing additional funds to reserves, including $2.5 million to the Capital Reserve Fund. Library Fund •Operating budget is $6.1 million, a 2.6% increase. •Property tax is the primary funding source, accounting for approximately 95% of revenues. •Property tax revenues expected to increase by 4%, including the passthrough from the prior Redevelopment Agency. Library Fund - SSAB •The City also established an enterprise fund for operations of the Second Story and Beyond® facility. •The enterprise budget for SSAB is $1.055 million in the upcoming fiscal year, representing a 9.3% increase. •The City also continues to establish an endowment fund in support of SSAB. Fire District •Operating budget is estimated to be $65.04 million, a 0.5% decrease. •Property taxes comprise 85% of the Fire District’s operating revenues. •Funding includes improvements for FS 173, 174, and 175. •Budget includes continuing funding to partner with the City on key initiatives including technology replacement and crossing-guard services. Fire District Property Tax Impact: •Fire District's mission: Respond to and reduce threats to life and property through emergency and non-emergency services. •Main funding source: Property tax revenue, with a larger share of each property tax dollar (about 12.5 cents). More than City, but growth is capped by Prop 13. •Additional revenue sources: Statutory passthroughs from former Redevelopment Agency and residual receipts from the County's RPTTF. Fire District Community Facilities Districts No. 85-1 and 88-1: •Operating budget includes two Community Facilities Districts (CFDs) for designated station operations. o Property tax revenues account for about 85% of Fire District's operating revenues. •FY 2025/26 budget incorporates a proposed 7% increase to offset rising costs due to inflation. This is part of a multi-year increase driven by reduced property sales, higher inflation, and years of flat rates. *presented as a blended residential rate; each has formula based on total dwelling unites or size of property FY 2025/26 Budget Message Staffing & Personnel Personnel Costs and Staffing Levels Full-Time Personnel •City employees are crucial for the delivery of programs and services. •Personnel costs constitute 24% of the budget and 72% with police and fire included. •The City is dedicated to hiring and retaining employees with specific qualities and fostering a modern work culture. Personnel Costs and Staffing Levels Part-time Personnel •Hiring part-time employees is challenging due to competition, abundant job openings, and higher wages offered by other employers. •The FY 2025/26 Budget proposes a part-time workforce that, in dollars, is back to pre-pandemic levels. CalPERS •Employee compensation includes retirement benefits provided by CalPERS, a defined benefit plan. •The City has limited control over employer contributions to CalPERS, leading to potential cost increases. Because the City is in CalPERS, which is dependent on year-to-year returns in the stock market, potential cost increases are always a possibility. •The California Public Employees' Pension Reform Act (PEPRA) established retirement compensation limits to address pension liabilities. •As more employees fall under PEPRA rates, the City's contribution to CalPERS is expected to stabilize or decrease over time. CalPERS Unfunded Accrued Liability (UAL) •The Fire District’s classic safety employees have a UAL contribution rate of 40%, exceeding the normal required employer contribution of 28%. •An increasing UAL results in higher total pension payments and can strain organizational budgets, potentially impacting service delivery. •The City and Fire District proactively address UAL by making supplemental payments and utilizing surplus funding to reduce long- term pension costs and stabilize budgets. FY 2025/26 Budget Message Workgroup and Department Overview Public Safety – Police Department Police Department Highlights •FY 2025/26 Budget includes the addition of two additional patrol deputies to help reduce emergency response times. •Continued investment in the Automatic License Plate Reader (ALPR) program. •Additional support for community policing programs, including a six-person Multiple Enforcement Team (MET) and the Solution-Oriented Policing (SOP) program. •Continuous updating of older Public Safety Video Network (PSVN) cameras and addition of FLOCK Safety Cameras. Public Safety – Fire District Fire District Highlights: •Completion of facility improvements to Fire Stations 173, 174, and 175. •Continued design process for Amethyst Fire Station 171 Rebuild and Expansion Project. The budget also includes key equipment replacements, including •One Type 1 Fire Engine •One Fire Shop truck •One 4-seat UTV for additional response capabilities in Cucamonga Canyon and Etiwanda Preserve. Community Development – Building & Safety Building and Safety Highlights: •Movement of Community Improvement Division. •Continued investment to enhance the Online Permit Center. •Launch of G-Whiz for enhanced electronic assistance for citizens, contractors, and developers in the permit application process. •Continued enhancement of the Quiq platform for improved communication with the public. Highlight: In FY 2024/25, the Building and Safety Department became the only International Accreditation Service (IAS) accredited Building Department in California. IAS recognized the department as representing the highest customer service and safety standards for the community. Community Development – Engineering Engineering Department Highlights: •Completion of 6th St. Cycle Track and West Foothill Complete Streets •The first Class IV cycle tracks in the Country. •Phase 2 of Advanced Traffic Management System (ATMS) •Highway Safety Improvement Program (HSIP) supported projects for Connect RC and the Local Roadway Safety Plan Community Development – Planning Planning Department Highlights: •Adoption & implementation of the Civic Center Master Plan •Updates to the Development Code Major Initiatives for the Upcoming Year •Continued review of major projects in the entitlement process. •Streamlining of development review process. Community Development – Public Works Public Works Highlights: •Zero emission fleet transition, with 17 additional electric vehicles expected to arrive in FY 2025/26. •Smart Infrastructure & Water Efficiency •Pavement and Sidewalk Rehabilitation •Red Hill Park South Revitalization •Climate Action & Waste Reduction •Department pursuing strategic realignment to improve operations and resource use. •Focus on maintaining vital infrastructure, advancing sustainability, and delivering essential services to the community. Community Programs – Anim al Services Animal Services Highlights: •Additional contracted veterinary services and temporary staffing for increased programming. •Implementation of non-resident intake fee for additional cost-recovery. •Priority for upcoming FY 2025/26 budget will be to recruit and retain qualified full-time staff. •Funding for recruitment of full-time Veterinarian to stabilize medical operations. •Continued partnership with the Animal Care Foundation to raise additional funds and community support. Community Programs – Com m unity Services Community Services Highlights: •Family Resource Center Modernization project is underway and anticipated to reopen in 2026 with enhanced programming and rental opportunities. •Victoria Gardens Cultural Center Upgrades •Gracia Park LED Lighting Installation •Mountain View Park Playground Renewal •Launch of Market Night Series and Faultline Festival •Additional funding for Park Ranger operations Community Programs – Library Services Library Services Highlights: •Westside Library Expansion Project - •Construction beginning in June 2025. •Assisted by $6.5M State Library Grant •Ongoing development of Second Story and Beyond® facility. •ADA upgrades and new public entrance at Paul A. Biane Library •Continued support for expanded services and spaces to encourage an accessible and supportive environment. Community Programs – City Clerk Services Department City Clerk Services Highlights: •Continuing use of the new Records Center at Fire Station 178 •Expanding online records access to enhance public service and transparency. •Investing in technology to continue digitization efforts across City records and archives. •Enhanced use of DocuSign and the existing contract repository to ensure accessibility and reduce volume of Public Records Requests. Adm inistrative Services - Finance Finance Department Highlights: •The upcoming budget includes funding for additional staff trainings for the City’s new Workday ERP system. •Launch of OpenGov Budget & Planning for seamless departmental collaboration and enhanced transparency capabilities. •Further exploration of digital payment services and banking enhancement to streamline customer service efforts. Adm inistrative Services – Innovation & Technology (DoIT) Innovation & Technology Department Highlights •FY 2025/26 Budget includes funding for the Network Infrastructure Refresh Project •Continued pursuit of the Disaster Recovery Plan and Continuity of Operations Plan •Ongoing partnership with the Police Department for the Real-Time Information Center (RTIC) launch. •Updates to the 5-Year Technology Roadmap and the 10-year capital replacement plan. Adm inistrative Services – Human Resources Human Resources Highlights: •Continued focus on the “Employee Experience”, promoting career development and cultivating employee well-being. •Refinement of Workday ERP system to enhance HR support across departments. •Focus on training for SMART goal setting to maximize the impact of the My Action Plan (MAP) •Transition to a full-service HR Business Partner model. Adm inistrative Services – Organizational Developm ent Organizational Development Highlights: •Department created in FY 2024/25. •Focus on professional development, employee engagement, and culture building activities. •Efforts to support My Action Plan (MAP) with organization-wide training and coaching. •Establishing a City Internship Hub. •Within Risk Management Division, enhancing safety services and launching the Citywide Safety Committee. •Ongoing recovery of public asset damage costs. City Manager’s Office – Economic Development Economic Development Highlights •Moved to the City Manager’s Office in early 2025. •Now oversees Business Licensing and the newly established Parking Authority. •Pursuing partnerships at al levels for business retention and expansion in the City. •Focus on next phase of Economic Development Strategy for expanded industry sector growth and business attraction. City Manager’s Office – Engagement & Special Programs Engagement & Special Programs Highlights •Formed in early 2025 and unites the Community Affairs Network, Healthy RC, Legislative Affairs, RC Broadband, and RCMU. •Leads communications and outreach for major projects, including Westside Library and Heritage Park Bridges. •Supports community wellness programs, including the Youth Leaders, CHAMPS, and the local opioid response. •Supports COAST, HOPE, and SOP teams for comprehensive homeless strategies. •Support RCMU expansions with new substations and outage communication tools. FY 2025/26 Budget Message Infrastructure & the Major Projects Program Major Projects Program (MPP) A major hallmark of Rancho Cucamonga has been proactive investment in infrastructure and major projects throughout the City. For the Fiscal Year 2025/26 Budget, in line with the City Council’s Vision, the City and Fire District will invest in many projects throughout the City. The following slides include a recap of the projects and their associated costs included in the upcoming budget year. MPP – Public Safety Workgroup RCPD/Emergency Operations Center Improvement & Expansion ($5M) Fire Station 173 and 175 ADA and Workforce Diversity Improvements ($2M) The Public Safety Workgroup includes the Police Department and the Rancho Cucamonga Fire Protection District MPP – Community Development Workgroup Major Projects Program – Community Development Workgroup Red Hill South Beautification Project ($1.8M)Citywide HVAC & Lighting Controls Upgrades ($9.4M over 5 fiscal years) Quakes Stadium Upgrade Projects ($1.6M)Quakes Stadium Bowl Waterproofing ($650K) Central Park Courtyard Improvement Project ($660K)LMD-2 Park Upgrades RIRE Grant Project ($200K) Parks Playground and Surfacing Replacements ($450K)Citywide Concrete Repair ($1.44M) 6th Street at BNSF Spur Crossing ($303K)Advanced Traffic Management System (ATMS) Program ($500K) City Center Boulevards Project ($3.4M)Civic Center Drive Improvement Project ($350K) Etiwanda Creek Bridges Project ($1.2M)Etiwanda East Side Widening Project ($1.37M) Local Roadway Safety Plan Improvements ($500K)Local Street Paving Program ($3.03M) Major Arterial Paving Program ($4.14M)Pecan Avenue Street Improvements ($1.78M) The Community Development Workgroup includes the Building & Safety, Community Improvement, Engineering, Planning, and Public Works Departments MPP – Community Programs Workgroup Paul A. Biane Library Infrastructure Project ($1.2M) Westside Library Expansion Project ($22.6M) The Community Programs Workgroup includes the Animal Services, Community Services, Library Services, and City Clerk Services Departments. MPP – Adm inistrative Services Workgroup City Data Network Infrastructure Refresh Project ($3.65M) Joint project between the City and Fire District The Administrative Services Workgroup includes the Finance, Innovation & Technology (DoIT), Human Resources, and Organizational Development Departments MPP – Engagement & Special Programs Wildfire Early Detection System ($670K) RCMU Electrical Outage Response Improvement Project ($300K) RCMU Line Extension Project – Etiwanda Heights ($450K) The Engagement & Special Programs Department also includes the Rancho Cucamonga Municipal Utility (RCMU) along with the Healthy RC and Community Affairs Network (CAN) Divisions FY 2025/26 Budget Message Special Districts Overview Special Districts Special Districts Overview •The City has 34 special assessment districts, many of which were established before Proposition 13 and lack regular adjustments for rising costs. •The General Fund provides minimal funding to ensure fiscal equity among the districts. •Service and maintenance levels are adjusted to address funding shortfalls, particularly on the west side of town. •Limited support for new voter-approved funding measures results in a growing backlog of deferred and unfunded maintenance needs. Moving forward, alternative strategies will be essential to maintain long-term financial stability in affected districts. Special Districts Recommended Rate Increases: •As a fiscal steward, adjustments are recommended where residents have given the City Council the authority, doing so only when necessary to balance budgets and accommodate rising costs. •Rate increases are recommended based on various factors, and over the last year is largely attributed to rate and contract labor cost increases, increasing in line with minimum wage hikes. •Rate increases are recommended for LMD 2 (3%), LMD 4-R (3%), LMD 6-R (2.94%), LMD 9 (3%), LMD 10 (3%), CFD No. 2018-01 (5%), CFD No. 2022-01 (5%). Special Districts The City administers debt service payments for existing CFD Bonds to cover current and future debt until the bonds mature. •CFD No. 2000-01 (South Etiwanda): Maturity in September 2025. •CFD No. 2000-02 (Rancho Cucamonga Corporate Park): Maturity in September 2025. •CFD No. 2000-03 (Rancho Summit): Maturity in September 2035. •CFD No. 2001-01 (Day Creek and Victoria Gardens): Maturity in September 2031. •CFD No. 2003-01 (Day Creek and Victoria Gardens): Maturity in September 2033. •CFD No. 2004-01 (Rancho Etiwanda Estates): Maturity in September 2036. •CFD No. 2006-01 (Vintner's Grove): Maturity in September 2037. •CFD No. 2006-02 (Amador on Route 66): Maturity in September 2037. The City actively monitors for refinancing opportunities prior to maturity. As these bonds mature, the City will be in a better position for a credit upgrade. Landscape Maintenance District 1 & Park District 85 LMD 1 and PD 85 are two of the oldest special districts in the City, formed just after incorporation. Due to legal restrictions, assessments in many districts cannot be altered without voter approval. Measure A was previously placed on the ballot in 2015 with the intent of modernizing the districts and ensure adequate resources, but the measure failed. Thus, resources have remained the same for over two decades. Unfortunately, FY 2024/25 saw service levels on non-park landscapes shifting in LMD-1 to Service Level F, indicating less attention to landscape areas throughout areas in LMD-1. However, the City will maintain Service Level C for park landscapes. Enhanced Infrastructure Financing District (EIFD) In July 2022, the City established an Enhanced Infrastructure Financing District, or EIFD, to support the construction of public facilities and infrastructure. The EIFD is funded through a portion of future growth in property tax revenue, and is set aside specifically for infrastructure improvements. The current projected fund balance of the EIFD is $1,092,941. In the upcoming year, the EIFD is expecting to generate approximately $980,000 in revenue during the year as the City continues to evaluate infrastructure needs and potential funding strategies. Questions?