Measure U Oversight Committee

Wed, April 29, 2026

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Meeting summaryAI-generated

Measure U Oversight Committee — April 29, 2026

This was a regular meeting of the five-member Measure U Oversight Committee, which reviews how the city spends revenue from Petaluma's local sales tax measure. The session focused primarily on a staff presentation covering the current fiscal year's mid-year financial update and a preview of the upcoming FY 2026–27 budget.

Members present: Jack Byrne, Davison (first name unclear from transcript), Chair Scott Fishman, and Hart. No public comment cards were received.

Approval of Minutes — February 19, 2026

The committee voted unanimously to approve the minutes from the prior meeting with no discussion.

Vote: Motion made by Byrne, seconded by Davison (or Hart — transcript unclear on seconder's identity); approved by unanimous voice vote.

Review of Final Biannual Report for FY Ended June 30, 2025

Staff clarified that this agenda item — the completed fiscal year-end report — had already been presented and discussed at the February 19 meeting. No new presentation was given; it was noted for the record.

FY 2025–26 Mid-Year Update and FY 2026–27 Preliminary Budget Preview

Assistant Finance Director Corey (last name not stated in transcript) delivered the substantive presentation of the evening. Key elements included:

Background and 15-Year Forecast: Staff revisited the city's 2021 Fiscal and Organizational Sustainability planning chart, which projects Measure U spending over 15 years across categories: closing the General Fund structural deficit (shown in blue/white), workforce stabilization including COLAs and new positions (orange, purple, and gold), infrastructure/roads (gray), and priority initiatives (green). Staff noted that actual spending has tracked closely with the 2021 projections, following the same bell-curve shape — costs peak around FY 2030–31 and then begin to decline as CalPERS retirement amortization costs ease.

Economic Uncertainty: Staff flagged a difficult economic backdrop, citing inflation rising from approximately 2.7% in Q1 to 3.3% in Q2 of calendar year 2026, rising unemployment, uncertainty related to the conflict in Iran, and potential federal interest rate cuts. Critically, the city's expenditure growth continues to outpace revenue growth, requiring budget reductions in the FY 2026–27 budget. A full City Council budget workshop is scheduled for May 11, 2026.

Measure U Revenues and Expenditures Since Inception: In early years, revenues slightly exceeded expenditures, building a fund balance that was drawn down in FY 2023–24. Since then, revenues and expenditures have been roughly balanced.

Accomplishments Funded by Measure U: Staff highlighted programs including mobile showers for the unhoused, the SAFE Team supporting police, fare-free transit (continuing into FY 2026–27), EV chargers, safe streets quick-builds, road projects (North McDowell, Maria Drive, Rainier, Howard, D Street, Caulfield), pavement preventative maintenance, the Petaluma River trestle, and the new Public Safety Facility. General Fund support has also enabled park and recreation programs, the skate park, aquatics, and public safety equipment purchases.

Current Year (FY 2025–26) Budget Recap: Total Measure U allocation is approximately $14.7 million. Of that, 63% supports public safety. Additional allocations cover road bond and ERP system debt service, the Lucchese turf field replacement, fare-free transit, and a sidewalk repair program.

FY 2026–27 Preliminary Budget: The total Measure U budget is projected at approximately $18.8 million — a notable jump from the current year. Staff explained this is not primarily due to increased revenue, but because accumulated reserve funds set aside in prior years are now available, partly because Measure H (a separate measure) has taken on some of the Public Safety Facility debt service costs, reducing the reserves needed for that purpose. The breakdown:

~$14.6 million for General Fund operations (virtually unchanged from FY 2025–26)

~$2.1 million for infrastructure bond debt service (road bond and Public Safety Facility)

~$2 million for large-scale pavement construction, including D Street and Caulfield Lane

~$0.2 million for continuation of fare-free transit

Committee Questions and Discussion:

*Road bond spending:* A committee member asked about the status of the $20 million road bond. Staff confirmed that by end of FY 2025–26, nearly all of the $21.8 million (including interest earned) will have been spent, with approximately $1.4 million carrying over into FY 2026–27 to complete remaining projects. Members expressed satisfaction that D Street improvements are included in next year's budget, noting the road has been a community concern.

*Future road bond:* A member asked whether another bond is planned. Staff responded that future road funding will likely depend on economic conditions and sales tax performance, and that additional large-scale bond funding is unlikely in the near term — probably within the next five years — unless economic conditions improve significantly.

*Homeless services providers:* A committee member asked about COTS and Downtown Streets Team, which appeared on a prior accomplishments list. Staff clarified that COTS is still a city partner, currently funded through a state grant. Downtown Streets Team is no longer a partner. Homeless outreach has shifted to Home First (street outreach and By-Name List management) and Rebuilding Together Petaluma (workforce-related programming). An approximately $8 million state grant received roughly two years ago has supported these programs, with about one year of funding remaining. Staff noted the city is actively seeking replacement grants, though both state and federal funding environments are uncertain.

*Downtown restroom project:* A member flagged $775,000 that appeared in FY 2023–24 spending for a restroom project, asking about the status given no restroom has been built. Staff explained that some of that funding was repurposed for urgent safety and ADA upgrades at the Senior Center parking lot. The restroom project has stalled because the original vendor has been unable to produce a unit that meets ADA and current California Building Code requirements. The city is now considering alternatives, including retrofitting existing downtown restrooms (including the currently-closed Putnam Plaza restrooms) or finding a less expensive compliant unit. Staff described the project as in a "holding and research pattern" but expressed continued optimism that a solution will be found.

*15-year forecast chart:* Committee members thanked staff for including the long-term planning chart, noting it had been a request from the prior meeting.

No formal vote was taken on agenda items 2 or 3, consistent with the committee's advisory role. The meeting adjourned without a formal motion.

Key Takeaways

FY 2026–27 Measure U budget rises to ~$18.8 million, largely due to redeployment of reserves previously set aside for Public Safety Facility debt (now partly covered by Measure H), enabling approximately $2 million in new pavement projects including D Street and Caulfield.

Expenditure growth is outpacing revenue, requiring budget reductions in FY 2026–27; a full City Council budget workshop is set for May 11, with budget adoption expected in June.

The $20 million road bond is nearly fully spent, with only ~$1.4 million carrying into FY 2026–27 — the program has funded major road projects across the city since 2022.

Homeless services funding is at risk: a critical ~$8 million state grant has about one year remaining, and replacement funding is uncertain at both state and federal levels.

The downtown restroom project remains stalled due to vendor compliance failures; the city is reassessing options including retrofitting existing facilities.

AI-generated summary from voice-to-text transcript. Not the official record. Verify important details with the source documents linked above.

What happened at this meeting

Approval of Minutes for the meeting of February 19, 2026

The committee moved to approve the minutes from the February 19, 2026 meeting. A motion was made and seconded with no discussion raised by committee members. All members voted in favor and the minutes were approved.

Review of Final Biannual Report for Fiscal Year Ended June 30, 2025

The Assistant Finance Director (Corey) clarified that Item 2 covers the Final Biannual Report for Fiscal Year ended June 30, 2025, which was previously reported and discussed at the last meeting. No additional discussion or questions were raised during this clarification.

Review of Fiscal Year 202526 MidYear Update and Fiscal Year 202627 Preliminary

# Combined Summary

The staff liaison presented an overview of the Measure U Oversight Committee's responsibilities and outlined how Measure U funds are allocated across general fund deficits, workforce stabilization, staffing, infrastructure/deferred maintenance, and priority initiatives, noting that while amounts have changed slightly, allocation categories remain consistent since 2021. Staff highlighted economic uncertainties affecting the city's budget, including inflation rising from 2.7% to 3.3% and expenditure growth outpacing revenue growth, which necessitates budget reductions for Fiscal Year 2027; the preliminary FY 2026-27 budget shows Measure U general fund support at approximately $14.6 million (virtually unchanged from FY 26) with a total preliminary budget of $18.8 million including $2.1 million in infrastructure bonds. The Fiscal Year 2025-26 Mid-Year Update details funding allocations including approximately $2 million for large-scale pavement construction projects (D Street and Caltrain field), debt service for road bonds and public safety facilities, and $0.2 million for the Transit Fare Free Program. In response to committee questions, staff clarified that colored sections in the 15-year financial chart represent new costs and positions not previously included in the general fund, explained that road improvement budget variations reflect prior-year fund setasides to smooth debt service payments due to PERS retirement cost amortization, and noted that approximately $20 million of bond funds will be spent by fiscal year-end with $1.4 million carried over to FY 2027. Additionally, staff provided updates on homeless services providers, noting that COTS continues state grant funding while Downtown Streets Team is no longer contracted with the city and Home First has been added to outreach efforts, and discussed how a public restroom project originally budgeted at $775,000 required redesign due to vendor ADA compliance issues and building code changes, with repurposed funds redirected to parking lot repairs and safety upgrades.

Agenda items (3)

Procedural (1)

1ProceduralApproval of Minutes for the meeting of February 19, 2026

The council will approve the official written record of what was discussed and decided at the February 19, 2026 meeting.

What happened

Public Hearing

2Public HearingReview of Final Biannual Report for Fiscal Year Ended June 30, 2025

Residents can comment on Petaluma's final financial report for the fiscal year ending June 30, 2025, which shows how the city spent its money over that period.

What happened

3Public HearingReview of Fiscal Year 202526 MidYear Update and Fiscal Year 202627 Preliminary

The public will have a chance to weigh in on an update showing how the city is tracking financially halfway through fiscal year 202526, plus a preview of the budget being planned for fiscal year 202627.

What happened

Additional votes recorded in minutes

Approval of minutes from February 19th, 2026 meeting

aye 1

voice voteaye

Verbatim transcript available

14 transcript segments indexed

[CALL TO ORDER] HEY, MEASURE U OVERSIGHT COMMITTEE MEMBERS. I CALL THIS MEETING TO ORDER. UM, SHOULD WE GO AHEAD AND TAKE A ROLL CALL? YES, ABSOLUTELY. BYRNE. UH, PRESENT. JACK BYRNE PRESENT. DAVISON CHAIR FISHMAN. SCOTT FISHMAN. PRESENT. HART PRESENT. THANK YOU VERY MUCH. WE HAVE AN AGENDA. YES. WILL YOU TELL ME WHAT TO DO OR I WILL. I, UM, IT LOOKS LIKE THE NEXT ITEM ON THE AGENDA IS GENERAL PUBLIC COMMENT. I DON'T SEE ANYONE IN THE, OH. AUDIENCE. IS IT, ARE THERE ANY GENERAL PUBLIC COMMENT CARDS? NO, WE HAVE NOT RECEIVED ANY GENERAL PUBLIC COMMENT CARDS. WONDERFUL. OKAY. LET'S MOVE ON TO PRESENTATIONS, , AND WE'LL LET OUR ASSISTANT FINANCE DIRECTOR BEGIN SHORTLY. SHE'S WORKING OUT HER PRESENTATION TEST TESTING. 1, 2, 3. AND I, I THINK, UH, [APPROVAL OF MINUTES] MADAM CHAIR, WHILE COREY'S GETTING SET UP, WE COULD MOVE AHEAD WITH ITEM NUMBER ONE, WHICH IS APPROVAL OF THE MINUTES FROM THE FEBRUARY MEETING, IF YOU'D LIKE TO DO THAT. UH, YES. DO I HAVE A MOTION TO APPROVE THE, UH, MINUTES FROM FEBRUARY 19TH, 2026? I'LL MAKE A MOTION TO APPROVE. THANK YOU. IS THERE ANY DISCUSSION REGARDING THE MINUTES? I WOULD SECOND THAT MOTION. OKAY. WELL, ALL IN FAVOR OF PASSING THE MINUTES, SAY AYE. AYE. AYE. MINUTES HAVE BEEN PASSED. THANK YOU. AND IT MIGHT BE, UH, HELPFUL, COREY, BEFORE YOU BEGIN TO JUST CLARIFY THE DIFFERENCE BETWEEN AGENDA ITEMS NUMBER TWO AND NUMBER THREE. SURE. [PUBLIC HEARINGS AND MATTERS FOR CONSIDERATION] SO AGENDA ITEM NUMBER TWO, UM, IS THE FISCAL YEAR END REPORT. SO THAT WAS FOR THE FISCAL YEAR, THAT ENDED JUNE 30, 20, 25 THAT WE REPORTED, UM, AND DISCUSSED AT THE LAST MEETING. AND AGENDA ITEM NUMBER THREE IS WHAT WE'LL BE DISCUSSING TONIGHT. AND IT'S AN UPDATE FOR THE CURRENT FISCAL YEAR BUDGET AND A PREVIEW OF WHAT THE 27 BUDGET, UM, WILL LOOK LIKE. OKAY.

SO AGENDA ITEM NUMBER TWO, UM, IS THE FISCAL YEAR END REPORT. SO THAT WAS FOR THE FISCAL YEAR, THAT ENDED JUNE 30, 20, 25 THAT WE REPORTED, UM, AND DISCUSSED AT THE LAST MEETING. AND AGENDA ITEM NUMBER THREE IS WHAT WE'LL BE DISCUSSING TONIGHT. AND IT'S AN UPDATE FOR THE CURRENT FISCAL YEAR BUDGET AND A PREVIEW OF WHAT THE 27 BUDGET, UM, WILL LOOK LIKE. OKAY. SO WE'LL JUMP RIGHT INTO THE PRESENTATION. UM, THANK YOU FOR YOUR PATIENCE, , WHILE I GET GOT THINGS SORTED OUT, UM, HERE. SO, UM, WELCOME EVERYONE, AND THANK YOU FOR YOUR TIME, UM, VOLUNTEERING. UM, YOUR FEEDBACK IS REALLY, UM, VALUED, SO WE APPRECIATE IT. UM, I'LL SERVE AS THE STAFF LIAISON, SO ANY QUESTIONS OR COMMENTS, FEEL FREE TO SEND 'EM TO ME. SO, UM, ON TONIGHT'S AGENDA, UM, WE'LL GO OVER WHAT THE MEASURE YOU COMMITTEE IS. UM, WE'LL TALK ABOUT THE FISCAL AND ORGANIZATIONAL SUSTAINABILITY, UM, PROCESS THAT WE WENT THROUGH IN 2021. WE'LL TOUCH ON, UM, A LITTLE BIT ABOUT THE STATUS OF THE ECONOMY AND HOW IT'S IMPACTING THE CITY. UM, WE'LL DISCUSS MEASURE U INCEPTION TO DATE BOTH REVENUES AND EXPENDITURES. WE'LL GO OVER 25, 26, UM, MID-YEAR UPDATE. UM, WE'LL TOUCH ON WHAT THE 27 PRELIMINARY BUDGET LOOKS LIKE, AND THEN WE'LL WRAP UP WITH, UM, QUESTIONS AND COMMENTS. SO, MEASURE U COMMITTEE, IT'S A FIVE MEMBER COMMITTEE AND MEMBERS ARE APPOINTED BY COUNCIL. UM, AS YOU KNOW, FOR YOUR TERMS, UM, AND SUBJECT TO BROWN ACT, RESPONSIBILITIES OF THE MEASURE U COMMITTEE, UM, ARE MAINLY COMPOSED OF REVIEWING, UM, AND COMMENTING ON HOW THE CITY, UM, IS SPENDING, UH, MEASURE U MONEY AND HOW IT ALIGNS WITH THE CATEGORIES. UM, AND ALSO ABOUT, UM, THE, THE PROPOSED MEASURE U APPROPRIATIONS FOR THE UPCOMING, UM, BUDGET YEAR.

SO THIS IS A CHART, UM, FROM OUR FISCAL AND ORGANIZATIONAL SUSTAINABILITY PROCESS THAT WE WENT THROUGH IN 2021. UM, WE ALWAYS LIKE TO INCLUDE THIS IN THE PRESENTATION TO, UM, UH, TO SHOW THE, THE, UM, COMMITTEE AS WELL AS THE COMMUNITY. UM, A REMINDER ABOUT HOW WE, UM, PLANNED FOR THE FUNDS TO BE SPENT, UM, IN THE LONG TERM. UM, THIS IS A ACTUALLY A 15 YEAR FORECAST, SO IT GOES OUT FURTHER THAN WHAT OUR TYPICAL, UM, FIVE-YEAR FORECAST LOOKS LIKE IN OUR BUDGET DOCUMENT. AND THIS ALLOWED US TO, UM, TO LOOK OUT FURTHER TO BE PROACTIVE IN HOW WE PLAN TO SPEND THE, THE FUNDS. AND SO JUST A LITTLE BIT ABOUT THE CHART HERE, THE BLUE AND WHITE, UM, KIND OF LINE SECTION WAS, UM, THE GENERAL FUND PROJECTED DEFICIT. SO THAT WAS THE DEFICIT THAT WE PROJECTED FOR ALL OF OUR OPERATING GENERAL FUND CORE SERVICES. AT THE TIME. WHEN WE PULLED THIS TOGETHER, WHEN WE WENT OUT FOR MEASURE U, UM, THE ORANGE, THE PURPLE, AND THE, UM, THE YELLOW COLOR ARE ALL RELATED TO WORKFORCE STABILIZATION. SO THAT'S, UM, A COLA THAT WE ANTICIPATED PROVIDING TO EMPLOYEES EVERY YEAR. THAT'S OUR CLASSIFICATION AND, UM, COMPENSATION REVIEW TO ALIGN OUR POSITIONS WITH WHAT MARKET, UM, COMPENSATION LOOKED LIKE AT THE TIME. UM, AND THEN, UM, TO BOLSTER OUR STAFFING TO ADDRESS DEMAND IS THE YELLOW, UM, SECTION. SO THOSE ARE ALL NEW COSTS. UH, WHEN WE WENT OUT WITH MEASURE U, UM, THE, THE BLUE AND WHITE ALREADY EXISTED, AND SO WE WERE TRYING TO, UM, TO MAKE SURE THAT WE HAVE FUNDING TO PROVIDE ADEQUATE, UM, SERVICES TO THE COMMUNITY. AND THEN THE GRAY BAR IS INFRASTRUCTURE, A VERY IMPORTANT SECTION, AND WE HAVE A LONG BACKLOG OF A DEFERRED MAINTENANCE.

SO THAT SECTION, UM, WAS, AND IT, IT IS INTENDED FOR ROADS AND FACILITIES. AND THEN THE GREEN SECTION IS FOR, UM, PRIORITY INITIATIVES. SO A, A VERY LIST OF THINGS THAT WE'VE, UM, WE'VE FUNDED OVER THE YEARS AND WE CONTINUE TO FUND TODAY. AND THEN NOT, UH, I SHOULD MENTION ALSO, SO THIS WAS THE CHART, YOU KNOW, BACK IN 2021 WHEN WE PULLED THIS TOGETHER, 2022. AND, UM, THE, WHILE THE AMOUNTS HAVE SLIGHTLY CHANGED, THE, THE BASIC KIND OF BELL CURVE THAT YOU SEE HERE OF ALL THE DIFFERENT CATEGORY CATEGORIES ARE EXACTLY THE SAME AS WHAT IT LOOKS LIKE TODAY. SO WE'RE BASICALLY IN LINE WITH WHAT WE HAD PROJECTED, UM, YOU KNOW, FIVE YEARS AGO. SO ECONOMIC, UM, UPDATE. UM, THERE IS A LOT OF UNCERTAINTY IN THE ECONOMY, UM, LARGELY RELATED TO, UM, NOW THE WAR IN IRAN AND HOW IT MIGHT IMPACT INFLATION AND THE ECONOMY AS A WHOLE. UM, WE ARE SEEING WHAT LOOKS TO BE LIKE SHORT TERM INCREASE IN INFLATION, UM, WITH, UH, THE QUARTER ONE, UM, CALENDAR YEAR INFLATION, UM, WAS ABOUT TWO, 2.7%. THAT'S JUMPED UP TO ABOUT 3.3% IN QUARTER TWO. UH, UNEMPLOYMENT RATE ALSO HAS, UM, HAS INCREASED IN DURING THE SAME TIME PERIOD. SO AGAIN, THAT'S JUST AN, JUST A, UM, A REMINDER THAT THE, YOU KNOW, THERE'S JUST A LOT OF UNCERTAINTY INTO THE MAR IN THE MARKET, WHICH DIRECTLY AFFECTS THE CITY'S, UM, BUDGET. UM, FEDERAL, THE FEDERAL, UM, INTEREST RATES. UH, WE COULD SEE ONE CUT IN THE END OF THE CALENDAR YEAR. UM, BUT THAT'S ALL DEPENDENT UPON EVERYTHING THAT I JUST, UM, TALKED ABOUT. SO THAT ALSO WOULD IMPACT THE CITY. UM, AND THEN POLICIES AT THE STATE AND COUNTY LEVEL, UM, THOSE COULD ALSO, UM, IMPACT THE CITY IN MANY DIFFERENT WAYS. UM, AND THEN OUR EXPENDITURE GROWTH CONTINUES TO OUTPACE OUR REVENUE GROWTH. SO WE ARE ADDRESSING THAT IMBALANCE IN THE FISCAL YEAR 27 BUDGET, UM, WHICH REQUIRED BUDGET REDUCTIONS IN THE, UM, COMING YEAR.

SO THAT ALSO WOULD IMPACT THE CITY. UM, AND THEN POLICIES AT THE STATE AND COUNTY LEVEL, UM, THOSE COULD ALSO, UM, IMPACT THE CITY IN MANY DIFFERENT WAYS. UM, AND THEN OUR EXPENDITURE GROWTH CONTINUES TO OUTPACE OUR REVENUE GROWTH. SO WE ARE ADDRESSING THAT IMBALANCE IN THE FISCAL YEAR 27 BUDGET, UM, WHICH REQUIRED BUDGET REDUCTIONS IN THE, UM, COMING YEAR. AND THEN OUR BUDGET WORKSHOP IS MAY 11TH. SO MORE ON THAT. UM, IF YOU'RE INTERESTED, UM, THAT, THAT'S THAT WORKSHOP WE'LL BE DISCUSSING ALL OF THAT. SO THIS IS JUST A CHART SHOWING OUR, UH, MEASURE U REVENUES AND EXPENDITURES FROM INCEPTION THROUGH FISCAL YEAR 26. AND, UM, THE BLUE BAR, OUR EXPENDITURES, THE BLUE LINE, OUR REVENUES. SO YOU CAN SEE IN THE EARLY YEARS, OUR REVENUES WERE SLIGHTLY HIGHER THAN OUR EXPENDITURES. THAT ALLOWED US TO BUILD UP, UM, A FUND BALANCE, WHICH WE THEN SPENT DOWN IN 24. THAT'S WHY THE EXPENDITURES ARE MORE THAN THE REVENUE IN THAT YEAR. AND THEN IN 24, 25 AND 25, 26, IT'S BASICALLY RIGHT IN LINE REVENUES AND EXPENDITURES. I DON'T KNOW WHY THAT SLIDE IS BLANK. UM, OH, OKAY. SO THIS IS JUST AN EXAMPLE, UM, OF ACCOMPLISHMENTS THAT MEASURE U HAS, UM, ALLOWED US, UM, TO ACCOMPLISH SINCE 21. IT'S NOT EVERYTHING, IT'S JUST A, AN EXAMPLE. UM, PROJECTS AND PROGRAMS, SO HOMELESSNESS AND MOBILE SHOWERS. OUR SAFE TEAM THAT HAS PROVIDED SUPPORT TO, UM, THE POLICE DEPARTMENT. UM, FAIR FREE PUBLIC TRANSPORT, WHICH WE, UM, TRANSIT, SORRY, UM, THAT WE CONTINUE TO FUND, UM, THROUGH 26 AND WILL BE FUNDED IN 27. UM, EV CHARGERS FOR ELECTRIC FLEET, SAFE STREETS, QUICK BUILDS. SO THOSE ARE SOME OF THE PROGRAMS. UM, AND THEN INFRASTRUCTURE PROJECTS, UH, NORTH MCDOWELL PROJECT, UM, THE MARIA DRIVE, RAINIER, HOWARD D STREET, CAULFIELD, PAVEMENT, UM, PREVENTATIVE MAINTENANCE, AND THEN THE TRESTLE. AND THEN LASTLY, WHAT'S NOT ON THIS, BUT VERY IMPORTANT IS THE PUBLIC SAFETY FACILITY. SO WE'VE ACCOMPLISHED A LOT WITH MEASURE U, UM, THAT JUST TOUCHES ON A FEW OF THE THINGS.

UM, BUT THAT GIVES YOU AN EXAMPLE OF THE DIRECT FUNDING FROM MEASURE U AND THEN GENERAL FUND SUPPORT. UM, IT'S PROVIDED MUCH NEEDED FACILITY IMPROVEMENTS ALL THROUGHOUT CITY FACILITIES. IT'S ALLOWED US, UM, TO DO A LOT IN OUR PARKS AND REC PROGRAMS. SO, UH, ANIMAL GRAZING, YOU KNOW, ORGANIC WEED ABATEMENT GO FOR ABATEMENT. UM, IT'S ALLOWED US TO PURCHASE EQUIPMENT FOR OUR PUBLIC SAFETY DEPARTMENTS. UM, AND THEN COMMUNITY PROJECTS AND SERVICES. SO THE AQUATIC PROGRAM IN THE NEW YEAR, OUR SKATE PARK, OUR NEW SKATE PARK, UM, BASEBALL, UM, THERE'S JUST SO MUCH, BUT THAT'S JUST AN EXAMPLE OF GENERAL FUND RELATED, UM, SUPPORT. SO THIS CHART, UM, SHOWS, UH, THE GENERAL FUND BUDGET COMPARED TO MEASURE U. UM, THE GREEN IS MEASURE U, THE BLUE IS THE GENERAL FUND. SO YOU CAN SEE THAT OUT OF THE ENTIRE GENERAL FUND. MEASURE U IS A RELATIVELY SMALL PORTION. UM, THE ANNUAL PERCENT THAT'S GOING TO SUPPORT GENERAL FUND OPERATIONS HAS GROWN. UM, BUT WE DO ANTICIPATE THAT TO REMAIN PRETTY CONSISTENT, UM, IN 27 WITH WHAT IT, WHAT IT IS IN 26TH. UM, AND ACTUALLY THROUGH, YOU KNOW, THE NEXT SEVERAL YEARS WE SHOULD SEE A DECLINE STARTING IN 2031 OR 2032. THIS IS A REMINDER OF WHAT THE 25, 26, THE CURRENT YEAR, FISCAL YEAR BUDGET LOOKS LIKE. UM, 14.7 MILLION IS ALLOCATED TO THE, UM, GENERAL FUND ABOUT, IF YOU WERE TO THINK OF THIS AS, AS, UH, IN TERMS OF THE ENTIRE GENERAL FUND AND WHAT THE MEASURE U CONTRIBUTES, UM, THAT THAT IS EQUIVALENT TO THAT 14 MILLION IS, IS BROKEN DOWN, 63% OF THAT SUPPORTS PUBLIC SAFETY. AND THEN THE REMAINDER SUPPORTS THE OTHER VARIOUS DEPARTMENTS THAT YOU SEE ON THIS, UM, PIE CHART. AND THEN THE TRANSFERS OUT, UM, ARE FOR BOTH THE DEBT SERVICE THAT WE HAVE, UM, OUR ON THE ROAD BOND. AND THEN, UM, OUR ERP PROJECT THAT IS ONGOING, UM, THAT REPLACES OUR ENTIRE ERP SYSTEM. UM, WE HAVE FUNDS IN THIS BUDGET FOR THE LUCCHESE TURF FIELD REPLACEMENT, UM, AS WELL AS THAT TRANSIT, UM, UM, FAIR FREE PROGRAM. AND THEN LASTLY, WE HAD FUNDING FOR A, UM, SIDEWALK REPAIR PROGRAM.

SO MOVING ON TO WHAT THE PRELIMINARY BUDGET LOOKS LIKE FOR FISCAL YEAR 27. WE ARE IN THE FINAL STAGES OF PULLING IT TOGETHER. UM, IT ACTUALLY WILL BE DELIVERED TO COUNCIL ON MONDAY. UM, OUR PRELIMINARY BUDGET LOOKS LIKE IT'S GOING TO BE ABOUT 18.8 MILLION FOR MEASURE U, UM, GENERAL FUND SUPPORT, VIRTUALLY UNCHANGED FROM FISCAL YEAR 26. THAT'S ABOUT 14.6 MILLION, UM, INFRASTRUCTURE BONDS, UM, THAT'S ABOUT 2.1 MILLION. AND THAT COVERS THE ONGOING DEBT SERVICE FOR BOTH THE ROAD BOND AND, UM, THE NEW, UM, PUBLIC SAFETY FACILITY. AND THEN WE ALSO HAVE, UM, APPROXIMATELY 2 MILLION SET ASIDE FOR SOME LARGE SCALE PAVEMENT CONSTRUCTION PROJECTS THAT INCLUDES D STREET AND, UM, CALL FIELD THAT YOU CAN SEE THERE. UM, MORE INFORMATION ABOUT THESE CIP PROJECTS IS INCLUDED AND WILL BE INCLUDED IN THE DRAFT BUDGET. SO IF YOU'RE WANTING TO KNOW MORE ABOUT THOSE PROJECTS, UM, THE BUDGET WILL BE AVAILABLE ON MONDAY FOR REVIEW. AND THEN LASTLY, THERE'S UM, 0.2 MILLION AGAIN FOR THE, UM, CONTINUATION OF THE TRANSIT FAIR FREE PROGRAM. SO THAT WRAPS UP THE BULK OF THE PRESENTATION. UM, A REMINDER ABOUT THE ACCOUNTABILITY AND TRANSPARENCY, UM, IT'S ONE OF MY TOP PRIORITIES. WE DO OUR BEST TO PROVIDE THE DATA AND MAKE IT EASILY ACCESSIBLE. UM, WE DO, UM, YOU KNOW, THE BUDGET, THE ANNUAL FINANCIAL REPORT. UM, THERE'S ONGOING, ONGOING FUND, UM, MONITORING THROUGHOUT THE YEAR. WE DO AT LEAST THREE BUDGET ADJUSTMENTS PER YEAR. UM, WE UPDATE THE, THE GENERAL FUND FORECAST MIDWAY THROUGH THE YEAR. UM, ALL FUNDING REMAINS IN THE PROJECT THROUGH COMPLETION. UM, ANY EXCESS FUND BALANCE REMAINS IN THE FUND AND IS AVAILABLE FOR FUTURE, UM, BUDGET CYCLES.

UM, THERE'S ONGOING, ONGOING FUND, UM, MONITORING THROUGHOUT THE YEAR. WE DO AT LEAST THREE BUDGET ADJUSTMENTS PER YEAR. UM, WE UPDATE THE, THE GENERAL FUND FORECAST MIDWAY THROUGH THE YEAR. UM, ALL FUNDING REMAINS IN THE PROJECT THROUGH COMPLETION. UM, ANY EXCESS FUND BALANCE REMAINS IN THE FUND AND IS AVAILABLE FOR FUTURE, UM, BUDGET CYCLES. UM, FINANCIAL DATA IS ALWAYS AVAILABLE IN THE BUDGET AND THROUGH THE FINANCIAL REPORT. AND THEN, UM, THE FINANCE DEPARTMENT'S ALWAYS AVAILABLE FOR QUESTIONS, ADDITIONAL INFORMATION, CLARIFICATIONS, ET CETERA. SO AS I MENTIONED, UM, THE CITY COUNCIL WILL REVIEW THE, THE BUDGET ON MAY 11TH, UM, AND THE COUNCIL WILL ADOPT THE BUDGET IN JUNE. AND THEN THE NEW FISCAL YEAR FOR FISCAL YEAR 26, 27 BEGINS JULY ONE. AND THEN OUR NEXT COMMITTEE MEETING WILL BE JANUARY OF 2027. SO THAT'S ALL I HAVE. UM, HAPPY TO ANSWER ANY QUESTIONS. I HAVE A QUESTION AND IT'S PAGE SIX ON YOUR PRESENTATION, PAGE FIVE IN THE, IN THE ACTUAL REPORT, IT'S THE, THE 15 YEAR DEAL. I, I THINK I UNDERSTAND THIS, BUT I WANT TO JUST MAKE SURE I CLARIFY. SO THE WAY I'LL ASK YOU, YOU KNOW, IF I, IF I LOOK AT THE GOLD SECTION THAT'S CORE STAFFING VERSUS WHAT'S IN THE DEFICIT SECTION, IS THAT CORE STAFFING ADDITIONS OR POSITIONS THAT WOULD'VE BEEN CUT IF IT WERE NOT FOR, UH, MEASURE U OR SOMETHING ELSE? HOW WOULD YOU DESCRIBE THE, THE, THE DIFFERENCE BETWEEN WHAT'S IN THE, THE GOLD VERSUS WHAT'S EMBEDDED IN THAT BLUE SECTION DOWN BELOW? DOES THAT QUESTION MAKE SENSE? IT DOES. SO THE GO, SO THE GOLD WOULD REPRESENT ALL, ACTUALLY ALL THREE OF THOSE COLORS. THE ORANGE, THE PURPLE, AND THE GOLD ARE ALL NEW COSTS. SO THEY'RE NOT POSITIONS THAT WOULD'VE BEEN CUT OR THAT WERE INCLUDED IN THE GENERAL FUND AT ALL THE TIME WE WENT OUT, UM, WITH FOR A MEASURE. YOU, THOSE ARE BRAND, THOSE ARE BRAND NEW POSITIONS. SO THEY'RE ARE, THEY ARE NEW.

SO THE GO, SO THE GOLD WOULD REPRESENT ALL, ACTUALLY ALL THREE OF THOSE COLORS. THE ORANGE, THE PURPLE, AND THE GOLD ARE ALL NEW COSTS. SO THEY'RE NOT POSITIONS THAT WOULD'VE BEEN CUT OR THAT WERE INCLUDED IN THE GENERAL FUND AT ALL THE TIME WE WENT OUT, UM, WITH FOR A MEASURE. YOU, THOSE ARE BRAND, THOSE ARE BRAND NEW POSITIONS. SO THEY'RE ARE, THEY ARE NEW. OKAY, THANK YOU. MM-HMM . I HAVE A FEW QUESTIONS. UM, IN THE REVISED BUDGET, 25 26, UH, THE ROAD IMPROVEMENT CATEGORY HAS $366,000, BUT WE HAVE ONE TO 2 MILLION IN DEBT SERVICE THAT WE SHOULD PAY EVERY YEAR. HOW, UM, DID WE PAY IT ? YEAH, SO LOOKING AGAIN AT THIS CHART, SO YOU CAN SEE THAT, UM, AS WE GO THROUGH THE YEARS, SO STARTING IN THE VERY BEGINNING IN 2022, UM, YOU CAN SEE THAT, YOU KNOW, THE COMBINATION OF BOTH THE BLUE, ORANGE, PURPLE AND, AND GOLD, UM, ARE ARE CLIMBING AS WE GO OUT INTO THE OUT YEARS, RIGHT? SO IT'S LIKE A BELL CURVE. AND SO WE KNEW THAT THIS WAS GOING TO HAPPEN, UM, FOR A VARIETY OF REASONS. BUT ONE MAIN REASON IS BECAUSE OF PERS RETIREMENT COST, BECAUSE OF THE WAY THAT THE AMORTIZATION AND PAYOFF OCCURS, IT, IT, IT, IT GOES UP AND THEN AT SOME POINT IN 20 31, 23, 32, IT STARTS COMING DOWN. AND SO WE KNEW THERE WAS A POINT IN TIME IN THIS FINANCIAL PLAN WHEN THE RESOURCES WERE GOING TO BE, YOU KNOW, LESS FOR CERTAIN THINGS. AND SO IN THE, IN THE BEGINNING OF THIS, OF THIS, UM, PLAN IN, IN THE EARLY YEARS, WE STARTED PUTTING MONEY ASIDE TO PAY FOR THAT DEBT SERVICE TO SMOOTH IT OUT OVER THE LIFE OF THE FORECAST. AND SO THAT'S WHY IN 26 YOU'RE ONLY SEEING 366,000 BECAUSE IN THE PRIOR YEARS WE PUT MORE MONEY AWAY SO THAT WE COULD PAY AND SMOOTH OUT THAT DEBT SERVICE OVER THE LIFE OF THIS FORECAST.

UH, AND THEN, UM, WITH THE PROJECTS THAT HAVE BEEN IN THE PAST, AND IT WAS A WONDERFUL LIST OF PROJECTS THAT WE HAVE COMPLETED, OR I GUESS THAT IS MY QUESTION. UM, HAVE WE COMPLETED SOME OF THESE, LIKE I SEE, UM, COTS AND DOWNTOWN STREETS TEAM, WE HAVEN'T FUNDED THEM IN A LONG TIME. ARE THEY STILL WORKING WITH US OR HOW IS THAT FUNDED NOW? YEAH, SO COTS IS, UM, WE'RE STILL WORKING WITH COTS. WE ARE NO LONGER WORKING WITH DOWNTOWN STREETS, SO THAT PROBABLY NEEDS TO BE UPDATED. UM, BUT WE ARE STILL WORKING WITH COTS AND UM, THEY'RE CURRENTLY FUNDED THROUGH, UM, A STATE GRANT. GREAT. YEAH. YEAH. WE'VE DONE SOME REVISIONS TO OUR HOMELESS SERVICE PROVIDERS IN THE LAST, I'D SAY TWO YEARS. SO WE HAVE A NEWER OUTREACH, UH, NONPROFIT CALLED HOME FIRST. OH YEAH. THEY DO ALL OF THE OUTREACH, THE STREET OUTREACH FOR PETALUMA AS WELL AS MANAGING WHAT'S CALLED OUR BY NAMES LIST, WHICH IS A KEY PART OF, YOU KNOW, KNOWING WHO'S OUT THERE, WHAT THE NEEDS ARE, HOW DO WE GET THEM INTO SERVICES AND HELP. UM, WE'VE SHIFTED SOME OF THE MORE WORKPLACE, UH, TRAINING PROGRAMS FROM DOWNTOWN STREETS TEAM TO REBUILDING TOGETHER A LOCAL PETALUMA NONPROFIT. UH, SO THERE HAVE BEEN SOME TWEAKS, BUT YEAH, COREY'S ABSOLUTELY RIGHT. WE WERE VERY LUCKY TO RECEIVE, I WANNA SAY LIKE AN $8 MILLION GRANT FROM THE STATE ABOUT TWO YEARS AGO. IT WAS ABOUT ONE YEAR LEFT ON THAT. UH, AND THAT'S BEEN REALLY BOLSTERING ALL OF OUR PROGRAMS. SO WE'RE OUT LOOKING FOR FUNDING NOW, UH, TO BE ABLE TO CONTINUE WHAT WE CAN WITH POTENTIALLY NEW GRANT FUNDING. UM, BUT THAT'S BEEN TOPIC OF CONVERSATION AT THE STATE LEVEL AND OBVIOUSLY THE FEDERAL LEVEL IN TERMS OF THOSE SUPPORTS AND CAN THEY CONTINUE JUST BASED ON BUDGET CHALLENGES. THAT'S WONDERFUL. THANK YOU.

I ALSO THINK IT'S WONDERFUL THAT THERE'S $4 MILLION IN THE ROAD IMPROVEMENT CATEGORY FOR THIS UPCOMING BUDGET, UM, AND D STREETS ON THE LIST, SO THAT'S ABSOLUTELY WONDERFUL. I THINK WE'VE ALL BEEN WORRIED THAT, UM, MEASURE U WAS PASSED BY THE CITIZENS IN ORDER TO GET THE ROADS FIXED. UM, SO I DID HAVE ONE MORE QUESTION ABOUT THAT. UM, WITH THE $20 MILLION, UM, BOND, DO WE KNOW WHERE WE ARE IN THE, THE BALANCE? HAVE WE SPENT 20 MILLION? YEAH, SO, UM, WE'RE ANTICIPATING THE SPENDING ALL BUT 1.4 MILLION, UM, THAT'S PROGRAMMED IN 27. SO BY THE END OF THIS FISCAL YEAR, WE'LL HAVE COMPLETELY SPENT ALL OF THE 20 MILLION AND ACTUALLY WE ACTUALLY HAVE 21.8 MILLION BECAUSE IT'S EARNED A LITTLE BIT OF INTEREST. AND SO WE'LL, WE'LL SPEND 20 MILLION BY THE END OF THIS YEAR, AND THEN THE 1.4 MILLION IS CARRIED OVER INTO, UM, 27 27 TO COMPLETE A FEW PROJECTS. YEAH. AND IS THERE A FUTURE, HAS THE FUTURE FOR, UM, ANOTHER BOND OR MORE FUNDS GOING TO ROAD IMPROVEMENTS? WE WERE ON FREIGHT'S TODAY COMING BACK AND IT'S, WE COULD USE A LITTLE HELP TOO. I THINK THERE ARE ACTUALLY, WE'RE, WE'RE LOOKING AT SOME, UH, SOME SAFETY IMPROVEMENTS OUT ON FREIGHTS ROAD. YEAH, ACTUALLY, UH, TRYING TO REDUCE SPEEDS AND, UM, ENSURE THAT SOME OF THE CROSSINGS ARE AS SAFE AS THEY CAN BE, UH, ESPECIALLY WITH SOME OF THE HOUSING THAT'S, THAT'S RIGHT THERE ON THAT STREET.

UM, IN TERMS OF THE FUTURE, I THINK THAT'S MORE, WE'LL PROBABLY HAVE TO BE PLAYING IT BY EAR FROM YEAR TO YEAR. UM, YOU KNOW, WE, WE TRY TO BE SOMEWHAT CONSERVATIVE IN OUR SALES TAX FORECASTS. SO, YOU KNOW, IF THERE, IF OUR ECONOMIC DEVELOPMENT EFFORTS ARE SUCCESSFUL OR THERE'S A CHANGE, UH, TO THE UPSWING IN THE ECONOMY THAT MAY, UM, YOU KNOW, PROVIDE MORE FUNDING THAN WE EXPECTED, AND IN THOSE CASES WE'RE ABLE TO DEPLOY, MEASURE YOU IN DIFFERENT WAYS. BUT AT THIS POINT, AS COREY ALLUDED TO, AT LEAST FOR SAY THE NEXT FIVE YEARS OR SO, UM, I THINK IT'S GONNA BE RELATIVELY LIMITED. AGAIN, UNLESS THERE'S SOMETHING UNEXPECTED THAT HAPPENS WHERE WE MAY HAVE AN OPPORTUNITY, I'LL JUST BE APPRECIATIVE OF THE $4 MILLION THAT IS THERE RIGHT NOW. UM, MAY I ALSO ASK ABOUT THE RESTROOM? UH, IT WAS 2324 WHERE IT SEEMS AS IF WE PAID 775,000. IS THAT BALANCE STILL SOMEWHERE SINCE THERE IS NO RESTROOM? UM, I THINK THAT THE BATHROOM PROJECT IN GENERAL HAS EVOLVED OVER THE LAST COUPLE YEARS, SO, UM, BRIAN CAN DEFINITELY SPEAK TO IT, BUT I THINK THE COST HAS COME DOWN A BIT OF WHAT WE WERE ORIGINALLY ANTICIPATING. SO YEAH, SO THAT PROJECT, SO THE FUNDING I THINK HAS BEEN REPURPOSED FOR A FEW DIFFERENT PROJECTS LIKE REPAIRING THE, UM, THE ASPHALT PARKING LOT IN FRONT OF THE, UH, SENIOR CENTER AND A COUPLE OF OTHER THINGS THAT WE HAD VERY CRITICAL SAFETY NEEDS AND A DA UPGRADES THAT WERE NEEDED. BUT, UM, THE, THE COREY'S RIGHT, THIS PROJECT OVERALL HAS MORPHED THE VENDOR THAT WE WERE ORIGINALLY GOING TO USE, UM, HAS HAD SOME CHALLENGES CREATING THEIR UNIT TO BE A DA COMPLIANT AND COMPLIANT WITH CALIFORNIA BUILDING CODE CHANGES THAT, YOU KNOW, THEY CHANGE, UH, EVERY THREE YEARS AND IT'S, THEY'VE JUST BEEN UNABLE TO DELIVER THE, THE PRODUCT THAT CAN MEET ALL OF THOSE.

SO WE'VE KIND OF GONE BACK TO THE DRAWING BOARD, LOOKED AT SOME, EXCUSE ME, SOME OTHER UNITS AND THOSE COSTS ARE SIGNIFICANTLY HIGHER THAN THE ORIGINAL VENDOR THAT WE WERE LOOKING TO GO WITH. SO, UH, WE HAVE SOME ADDITIONAL STRATEGIES THAT WE WILL BE INCLUDING IN THE, THIS UPCOMING CAPITAL IMPROVEMENT BUDGET. UM, COULD BE LOOKING AT SOME OF THE EXISTING RESTROOMS THAT ARE ALREADY DOWNTOWN AND RE RE UH, RETROFITTING AND RENOVATING THOSE THAT MAY BE, WE MAY BE ABLE TO CONTINUE LOOKING FOR A LESS EXPENSIVE UNIT THAT CAN BE PLACED SOMEWHERE. SO A LITTLE BIT OF A HOLDING AND RESEARCH PATTERN AT THIS POINT, BUT WE'RE STILL OPTIMISTIC THAT SOMETHING CAN GET DONE ON THAT FRONT. IT'S JUST WE'VE HIT A, A NUMBER OF DIFFERENT ROADBLOCKS ON THAT PROJECT. UH, WE STILL HAVE THE, YOU KNOW, THE RESTROOMS IN PUTNAM PLAZA THAT, UH, WERE OPEN TO THE PUBLIC MANY YEARS AGO, THEY'RE NOW CLOSED, SO THERE MAY BE AN OPPORTUNITY WITH THOSE AS WELL. MM-HMM . SO LOOKING AT IT FROM A FEW DIFFERENT ANGLES. OKAY. WOULD CHAT, I SHOULD HAVE SAID THIS FIRST, THANK YOU FOR INCLUDING THE 15 YEAR HISTORY. I THINK THAT WAS ONE OF OUR BIG REQUESTS AT THE LAST MEETING, AND I THINK IT'S GOOD TO HAVE THAT OUT. IT'S A CHALLENGING, UH, BENCHMARK TO PUT OUT THERE, BUT THANK YOU FOR, FOR GETTING IT IN. WELL, I'VE GOT A QUESTION, BUT YOU KNOW, PER ME, I'M, I MIGHT BE SORT OF OBVIOUS, BUT I'M GONNA ASK IT ANYWAY. UM, SO THE, THE BUDGET, IF I'M NOT MISTAKEN, FOR THIS CURRENT FISCAL YEAR FOR THE MEASURE U WAS I THINK 14.7 MILLION, AND THEN FOR NEXT YEAR IT'S KIND OF JUMPING UP TO 18. AND I'M JUST CURIOUS KIND OF WHAT, WHAT ACCOUNTS FOR THAT JUMP AND IT, WAS THAT A GOOD THING? ARE WE ANTICIPATING INCREASED REVENUE FOR MEASURE U? THAT'S A GOOD QUESTION.

SO, UM, GOING BACK TO WHAT I JUST DISCUSSED ABOUT HOW WE'VE BEEN PUTTING MONEY ASIDE, SO WE'VE BEEN PUTTING MONEY ASIDE AND THAT BALANCE HAS GROWN, UM, TO A POINT WHERE WE DON'T NEED ALL OF IT INTO THE FUTURE. AND THAT'S LARGELY BECAUSE OF THE PUBLIC SAFETY FACILITY AND THE FINANCING AROUND THAT. UM, WHEN WE PREPARED THIS, UM, FORECAST, MEASURE H THAT WAS PASSED WAS NOT, YOU KNOW, IN PLACE. AND SO NOW THAT WE'VE REVISED THE, THE, THE FUNDING FOR THAT DEBT SERVICE AND FACTORED IT IN, LOOKED AT THE BALANCE THAT WE HAD ACCUMULATED, WE DIDN'T NEED THAT MUCH. AND SO THAT'S HOW WE WERE ABLE TO FUND D STREET AND CAULFIELD IN THE NEW YEAR. OKAY. OKAY. MM-HMM . THANK YOU. MM-HMM . WELL, IT'S, UH, THAT'S COMMITTEE COMMENT. STAFF, DO YOU HAVE ANY COMMENTS? THANK YOU. UM, WELL, DO I HAVE A MOTION TO ADJOURN? DO I NEED A MOTION TO ADJOURN? , YOU CAN JUST DO IT BY A CLAIM WITHOUT A MOTION. IF YOU LIKE , IF I HEAD NODS OR WHATEVER'S EASY FOR YOU. IT'S JUST AJO ALL. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.