 Effectively so here's some expenditure line item increases that we're seeing kind of universally through the department. So, the 1st item 2.5% included for the regional budget. It's important to point this out because the city manager is directed. City wide that we're not to budget for any colas. However, given the fact that our regional partner agencies are so much smaller than us. We were sensitive to the fact that if the city came back with large colas mid year we're we're having to ask pretty small agencies to come up with a lot of money all at once. So, the finance team made a concession and allowed us to budget for 2.5% cola and regional just to soften the potential blow of any changes mid year. Continuing to see chemicals and electricity go up. In fact, I believe between fiscal year 22 and 23, we saw 32% increase in the amount we paid for electricity in a 56% year over year increase on the price of chemicals. So, we're still keeping an eye on that and increasing budget for those items. We'll talk to you a little bit a little bit about our water purchase budget later in the presentation. Insurance premiums. We're saying insurance premiums between increases of between 20 and 65% through the department. So it's pretty substantial increases. We have some increases and outside services, which I'll touch on later in the presentation and then we have 4 staffing changes. 3 new positions, all replacing vacant positions and the water reuse engineer move from asset management to regional. She's actually already out at the plant, but what we're doing is moving her labor budgetarily for next year. So, overall, we look at our water wastewater regional and storm water increases increases rather we have an overall increase 5.9% to the water fund. A decrease of 1.9% to the wastewater fund. 8.5% increase in regional and then overall increase in about 20% and storm water and creeks. Just under 19% funded by the general fund and 81% funded by enterprise funds that 20% is actually a little misleading and I'll touch on that later on in the presentation when we discuss storm water and creeks on budget. So, we're proposing a total department wide budget, including storm water of $84.2 million. As you can see the water purchase piece of the budget takes up more and more of our budget each year. In our capital program, I'm going to talk to you about our capital program. We're funding at a much lower level than originally anticipated. I'll talk about that a little later in the presentation as well. So, when we look at our water operations. 2 line items that jump out or professional services at a 32% increase in purchase of water at a 10.6% increase. Professional services. That increase is mostly related to ongoing costs of Santa Rosa's share of the groundwater sustainability agency. It's JPA that was set up a few years ago. I believe and we initially funded that project to pay up front capital costs to kind of stand up. The ground water sustainability agency, but now they're in operational mode. So now we're at a point where we need to shift in budget for yearly operating costs to fund our part of the program. So that's that's why we're seeing this increase here in the water purchase budget. I'll get into a little more detail on the next slide. And then we're seeing it and property insurance, as mentioned earlier, or sorry, property insurance rather 47% increase. So, yeah, we're feeling pain there for sure. So our water purchase budget. As I mentioned earlier, we're only anticipating 1% growth. On the volume of water delivered. So we started snow water originally proposed a rate of 14.57%. We did a lot of work with the, the tack, especially the tack finance subcommittee with Sonoma water. They were eventually able to come down to 9.88%, which has been approved by the tack. And so we're looking at a total of 15,272 acre feet. $1,289 per acre put. Here's a look at our water on m budgets. As I mentioned earlier, the water purchase is taking up a larger and larger share. The administrative fund and city overhead. That includes items such as water billing and internal overhead allocations in our wastewater operating budget. Again, professional services, we're seeing a 10% increase. This is related to costs related to reopening our geysers operation center. And for utilities, we budgeted 20% increase in the volume of electricity, or sorry, and the rate of electricity used added a little bit more. And so we decided that the wastewater sections were actually using a little more budget than, than we're spending a little more than they were budgeting. So we added a little more to catch up budget terribly. Here's a visual look at our wastewater on m budget. About 50% of the budget is administrative fund and city overhead and debt service. And debt service, we don't see so much on the water side, but on the wastewater side, the debt service represents the local share of the construction bonds that regionals issued for the major infrastructure replacement projects such as a UV system. That bond issuance of 2020 is all went to plant infrastructure, but some of the older bond issuance is part of that was used on our local sewer infrastructure. And so that's why we're seeing debt service numbers in the wastewater fund. And moving on to the regional operations budget 14.8% increase in professional services. This is related to the fact that we might not have the ability to apply bio solids. To the same extent for land application as we have in prior years. It's my understanding that several of the ranches or farms that we use for land application have come up with have new less ease. And we're not sure whether they're going to choose to make their land available for bio solid land application so we've budgeted a significant increase in professional services to account for the possible impacts of having to deliver more of our bio solids to list tech. Utilities again we budgeted about a 20% increase. And then our it allocation is going up 24.2%. As a reminder, it is actually an uncontrollable item. And the reason we're seeing this number go up this year for regionals because they're paying for additional software licenses that they hadn't previously. And as we look at the regional budget, this obviously has the largest debt service in the system, because it's so infrastructure heavy we've been doing a lot of work, salaries and benefits. O1M projects and debt service take up almost 50% of the budget cash funded CIP this is the one fund out of water wastewater and regional. This is the one fund that's fully funding their CIP this year for $11 million. We increase $1 million per year or $10 million for the current fiscal year. So we are bumping that up to 11. So our regional operations has something called the refund reserve. This is a mechanism we put in place several years ago to help rate smoothing to give our partner agencies the ability to rate smooth. The regional fund is a zero budget essentially, meaning we calculate our total expenses. We subtract our anticipated revenues and we allocate out only the net costs to the partner agencies. So our expenditure should always equal our revenues. What happens is with each fiscal year we generate turn back, we either generate a budgetary deficit where we spent more than we budgeted or collected, or we have turn back where we're turning budget back to the fund. Several years ago, the partner agencies said, well, rather than writing us a check back. Why don't you guys hold on to the money. We'll put it in reserve fund and then say, say we had to propose a 10% increase. Sebastopol might be able to liquidate some of that $500,000 to mitigate that to a net 5% increase. So it's been a valuable tool over the years for rate smoothing. We do have some negative balances for ourselves as well as Kotati. But we're hoping to turn that around soon and have everybody on a positive basis. Here's some proposed regional partner allocations for fiscal year 2425. Santa Rosa has a 5% increase in a look at our operating fund reserves is June 30, 2023. I wanted to include this slide to really drive home what's going on with our reserve levels and how we need to address that with the budget. So as of June 30, 2023, the waterfront and operating reserve of 5.2 million catastrophic of 5.75 and a 14.8 million undesignated reserve balance. The previous year that was 21.3 and wastewater we had 1.8 operating reserve catastrophic of 6.8 and 6.8 and undesignated, which was 17.1 million in the previous year. And in regional, again, we don't have an undesignated fund balance per se, but our partner agency refund reserve did go up a little, which is good to the end of getting everybody out of deficit position and reserve balance. And I wanted to do this to outline our prior budgetary approach or current budgetary approach rather versus what we're doing for next year. So, as you all know, we, we've been building on designated reserve balances and the water funds for some for several years. And we wanted to start to accrete some of that. So, for 2324 we budgeted 54.3 million dollars in revenues and 57.8 and expenses. And we're addressing that going for for 2425. We're budgeting revenues of 56.3 expenditures of 553. Leaving a projected. Budget surplus of about $942,000. Undesignated fund balance and local wastewater we budgeted at 83.5 revenues last year 86, 6 and expenses for a deficit budget at 3.1 million dollars. And for 2425. We're budgeting a surplus of about $890,000. Local wastewater really felt it this year because as you know. Local wastewater reserves pay for Santa Rosa share the sub regional. Operations and CIP and that service. And so between covering its own expenses. And budgeting for the Santa Rosa's allocation of regional. Operation CIP and that service for next year. It's pretty tight in the local wastewater fund, but we're able to make it work budgeting for an $890,000 deficit for next year. Okay, looking at stormwater and creeps operations. The first thing I want to say, I spoke earlier that 20.5% is a bit misleading. The reason for that is because last year of budget time, there was a project it's a stormwater permit compliance. It wasn't budgeted for the budget, but what we did was we came in mid year. Provided 100% of the budget for that key. And so the budget system since it came in as a mid year revision and wasn't programmed with the budget. It shows a larger delta year over year than there actually is. So most of that's really related to our permits. Stormwater permit compliance and work we do for the MPDS permit compliance. And operational supplies are costs associated with stormwater and MPDS permit compliance along with cost to implement stormwater. DMPs at the MSCS corporation yard next door. Here's our stormwater intrigues on budgets. You can see half of their budget is consumed with salaries and benefits for a total of $3.9 million for 2425. And since we touched on the water operating fund reserves, I'll talk to you about stormwater. As of June 30 2023, stormwater enterprise had 744,000 1672 the stormwater creek restoration fund had an undesignated fund balance of 1.3. Okay, so now we'll move on to talking about some of our CIP funding. I really wanted to highlight this because we had to make some choices this year to get the numbers to work. To make sure expenditures came in under our revenues, which was our top priority for 2425. We had to make some cuts and those cuts came in the form of the most discretionary part of our budget, which is the CIP. We recognize that we're chronically under invested in CIP and we're working on that but given the fast cost increases. The cost increases over the last several years have outpaced the increases in our rate model. So we for water, we planned a $15 million CIP and we reduced that by 5.6 million to deliver 9. Little under 9.5 million sewer we planned 13.9 million we had to reduce it by 10.6 million. So we're delivering CIP of 3.3 million regional. Did continue their $1 million per year increase as planned so that's $11 million for 2425 and storm water increase is bringing forth the CIP budget of 1.6 million. So our CIP for the water fund for 2425 is broken out between master plan studies miscellaneous water mains and services pump stations in our groundwater program. Local wastewater CIP 910,000 the sewer mains and services and 2.3 million dollars and sewer trump work and only $100,000 towards master plan studies and miscellaneous and as you might imagine, we have to pair back your CIP budget to such an extent master plans and studies tend to fall by the wayside so we're focusing our investments on hardware infrastructure. CIP 11 million dollars 10.1 million in the plant infrastructure and the remaining 900,000 to the geysers system. Stormwater is spending 757,000 in programmatic projects, general maintenance on call for emergency work. If there's spills or contamination of a creek. $150,000 on the McMinn Avenue storm drain replacement and continuing work on the lower cold and creek restoration phase 3 project. So just to touch on the CIP documents in front of you. The spreadsheets are pretty large and busy, but it can pretty well be summed up by saying anything on the gray headers on the left hand side. It represents budget that was either previously appropriated or appropriated in the current year. Anything under the colored headers on the right is going to represent proposed one through years one through five CIP budget. So we always show you five years as a reminder, even though we're showing yours two through five as a planning tool we're only ever asking you to formally recommend and adopt year one of the CIP budget. And with that, I'm going to introduce my colleague Jason Robert. He's a supervising engineer of our asset management group. Talk about CIP. All right. Thank you, Nick. Good morning members of the committee. I'm going to talk about projects that we have proposed for year one in our budget from each enterprise. And so there's a list of them here. We'll talk about water sewer, water projects, sewer projects, regional projects and stormwater just highlighting a few of those. So in our water enterprise, we've got two projects. We've got the Rock Creek in Matanzas water and sewer main replacement projects. This project is replacing aged and undersized water mains installed. The water portion of that 3 million dollars project is currently in design and nearly completion is and we expect to go to construction year one. The next one is Calistoga road reconstruction projects. This is a project driven by transportation and public works. And we are joining this project to replace aged water mains. Calistoga road estimated at 1.7 million design is going to start in year 1 and we project construction starting in year 2. On our groundwater program. We are restarting work on farmers lane water treatment rehabilitation projects. The project right now is about 90% design. Our consultants are a regrouping with some changes to help there. But the project is going to replace process and controls and pumping equipment within the facility. Construction estimate is about 4.3 million and we expect to finish design in year 1 and go to construction in year 2. Another one in our water enterprise. Pump stations. Started a programmatic effort this year to proactively replace our variable frequency drives their pump stations. They have a life span. In the 15 years. They go out there out. And sometimes the long lead times on these. Can be problematic. Right. So we're trying to do. Have a more programmatic approach to replacing these. Every 10 to 15 years. So we have a 1st round of replacements scheduled to go to design in year 1. And then hopefully construction starting year 1, going into year 2. On the sewer enterprise. Again, you'll see Rock Creek in the tanzas portion of this project. It's going to replace asbestos cement. I said, we'll finish design in year 1 and project to go to construction in year 2. The Fulton road sewer main improvements projects. That is. Replacing an 8 inch sewer main and full road estimated at $2.7 million. The design is complete. There's been an extended portion of design. And then we're going to go to construction in year 1. And then we're going to go near the end. Two to some. Negotiations with tribal entities, namely great. But we finished that up and are ready to go to construction in year 1. Oakmont treatment plant sewer truck relocation. Now this project is going to relocate. The sewer trunk. Around the current. Oakmont treatment plant facility, which is. And we'll also be doing a new creek crossing. On the west side of that treatment plant property. This project is estimated 2.3 million. The design is. Nearing completion. And we expect to go to, to construction in your 1. So we're trunks. You have seen this projects come to BPU. For contract approval already. So that's project is currently in design and we are. Looking at going to construction year 1. This is the design bill project for a long stretch of a lot of trunk. About Todd road down to the treatment plant. For Laguna treatment plants. There's a major electrical infrastructure improvement project that is getting started. It's currently in design. We are. Proposing or we are funding this project with $8 million in year 1. Mostly for pre procurement of electrical equipment. Right now, some of the lead times on, on electrical equipment that's needed for this project. Are about 2 to 3 years. So to avoid increases in costs. You know, 2 to 3 years out, we're, we're looking to do some pre procurement. And there's a list of some projects or some components being replaced. With this project. The reclamation pump station building upgrades important projects. For not just reclamation, but the geyser system as well. The current building has exceeded its useful life and it needs to be replaced. There's also an existing gravel floor for this building. And so we'll obviously be replacing the foundation and floor with concrete and constructing a new building. It's estimated about half a million dollars and. Our estimated completion is by July 2025. For the geyser system. We are budgeting and planning for this geysers pump station electrical upgrades projects. And a lot of the pumps and the controls are nearing the end of their useful life and or not supported by the manufacturer original manufacturer. And so we're looking to replace those components. We have existing funding for current fiscal of about 1.3 million to purchase new VFDs for for a pumps. And then our budgeting another half a million dollars in 2425. To purchase new pumps and improve or lock out tag out features of those of that equipment. Our stormwater enterprise. We have the lower Colton Creek restoration phase 3 project. This project will connect phases 1 and 2 that were done in 2015 and 2021. Restore 2500 foot. Creek flood control channel. Plan native repairing trees and shrubs along that length. I think most importantly increase the flood capacity from 25 years to 100 years. And then new bicycle and pedestrian pathways. And a bridge. There's been 5.8 million in grant funding obtained for land acquisition design and construction. Design is currently underway and we hope to go to construction beginning year 1 and into year 2. With that, I'll hand it back over to Nick to talk about the remaining budget schedule. Okay, here's the remaining budget schedule. As you know, we're going to be with the study session. On Thursday. We'll be asking for the full boards formal recommendation city council on April 4th. May 7th and 8th, the city is holding their budget study sessions with eventual budget adoption plan for June 18th. Without we're happy to take any questions we have. Yeah, it seems pretty straightforward and I support. I think, I think the CIA. Fund all this up. We can't go out for repairs. That's the number one. What is our background right now? Our fund. It's a background. I don't know if you can see that. And that's it. You probably want to get those. And they know the balance. Yes. Yes. The project. Sorry. Who asked to do a graph on page 2. Okay. Well, there we go. So at the end of the document, you're going to have to have an equal balance. That presents our career. So. So. So. I'll be now. The water. And that's John 41 million. Is the project available. What was that? That means there's a grant for $1 million currently appropriated by state. And just so just to be clear, it's. So that is money that's been appropriated. It's not in the house. That is. Actually, I'm sorry. Those are appropriate. There's a specific. Specifically. The water side. And. Does that. I mean, that does not take you. It's not. Yeah, it's not that figure is not inclusive of the year one. Proposed appropriations on the right hand side. Yeah. Okay. And let's have a bio sauce. I was just stressing to hear the farmers making the bio solids. I'm going to invite Mike. Right now. We have a couple of properties where there has been some change. Because folks have pastoral folks are. And just no decision has been made yet. So. We want to make sure that we have a place they could go if we're unable to. So right now they're going to bear a bill. We are mentioning to take them to the second. Yeah, I think I'll support this. Oh, sorry. I'll support this. Yeah. You're going to move. I'll go back on this. See. The board member, right? There's a nice prompt on the screen for your, for your motion. He'd like. Oh, This is what we recommend. But I didn't. Sure. We have a motion. I'm glad that the board publicly do the utilities approved this bill year in 2024. 25 water. Local wastewater regional use and storm water. And operation. Appalachian appropriation. And other. Comments on that. I'm good. Okay. We can have a roll call or vote. I share right. And that process. Yeah. I'm glad to hear that. Thank you. Thank you. And the board member. Well, I'll pass it.