City Council — June 1, 2026

Good evening everyone and welcome to the City Council meeting. I am calling this meeting to order, the time is now 530. Madam Clerk please take roll.

Council Member Gama?

Here.

Council Member Lopez?

Here.

Council Member Perez? Here Mayor Pro Tem Hernandez? Here And Mayor McQueen-Lejeune?

Here We'll now hear public comments for the closed session item. Madam Clerk are there any public comments?

I have no public comments for closed session

Okay, so we'll move on to the City Attorney to read the item into the record.

Thank you. We'll be going into closed session tonight for conference with labor negotiators pursuant to government code section 54957.6. The agency's representatives include James Vega, city manager, Charles Pretz, deputy city manager and Frank Lee, human resources risk manager and will be discussion related to employee association SEIU Service Employees International Union 721.

Welcome everyone to the City Council regular meeting. I'm calling this meeting to order, the time is now 632. Please stand and join Councilmember Lopez for the Pledge of

Allegiance. Everyone hand over your right hand over your heart. Ready begin.

Okay, Madam Clerk can you please take roll? Council Member Gama.

Here.

Council Member Lopez. Here. Council Member Perez. Here. Mayor Pro Tem Hernandez. Here and Mayor McQueen-Lejeune.

Here Our inspiration will be given by Council Member Perez over to you

My inspiration will be brief and it's just to thank our city manager for all the hard work he does in trying to get our budget under control, for making sure all of our city departments are well maintained and ran by great leaders. And that all the services in the city are still being provided for even under budget issues but he does a great job with managing all the millions of tasks that are required of a City Manager and I don't think he gets enough appreciation

Great, thank you. We're going to move to our closed session report. City Attorney please?

There was no reportable action tonight.

Okay we're going to move to a public comment so we'll now hear public comments not related to items that are in on the agenda. Comments are limited to three minutes this process will be the same for items on the agenda. Madam Clerk are there any public comments?

Yes, and I just wanted to note that we did receive some written public comments that were provided to the council before this meeting and are in the public binder and on the website for your review. The first in-person public comment is Zach Boliva.

Good evening Madam Mayor, members of the Council. I'd just like to respond to a comment that was made at the last meeting regarding truck traffic at the Port of Hueneme. The Port of Hueneme is...I should have introduced myself, I'm sorry. I'll go back for a minute and say I'm Zach Boliva, the PIO at the port. The port of Hueneme is regulated by the United States Coast Guard under the Maritime Transportation Security Act, which is federal legislation enacted after the attacks of September 11th 2001. It created a comprehensive security framework for USC ports including ours we have a facility security plan That mandates transportation worker identification credentials or TWIC cards for personnel who want to access restricted maritime areas. So you can think of the seaport similar to an airport in this regard.

Now when someone comes through our gate, we ask them to present a valid TWIC card and a reason for visiting the port. We also collect some data that we forward to the California Air Resources Board. I'd like to clarify that the port does not have authority over traffic enforcement, licensing or employment of individual truck drivers. Those authorities lie with law enforcement regulatory agency and private trucking companies. However we do work with our partners on signage at the gate inside the gate and off port to promote safe operations and assist wherever we can. We know the overwhelming majority of drivers operate safely, and citizens with questions or concerns can call our 24-7 Harbormaster line or reach me directly at 805-616-6881. Thank you for your time.

Thank you.

Okay I'm gonna do the next four so you guys can line up and get ready to speak. Anai Hernandez, Chris Bates, Jose Bernal, and Theo Provencio

Okay. Madam Clerk, how many speakers do we have from SCIU tonight? Just the four. Just the four. Great. Thank you. Come right on up.

Good afternoon Mayor, Mayor Pro Temp, Council Members, staff, fellow union members and attendings. My name is Anai Hernandez I am part of the negotiating team for SEIU this year. Over the last few months I have had the pleasure of getting to know my co-workers a little better. I have heard their concerns and their disappointments. I have bargained with management and heard city's challenges The city has cited budget issues, but we are still waiting for the city's budget to see the extent of the issue.

I'd like to emphasize that the needs being requested during this negotiation period are cost-of-living adjustments and mitigating the impact of rising health care The consumer price index increased by 3.7% this year, and stagnation cannot be the story for City employees. Our members provide essential services to keep the city operating. We are the employees who interact daily with the community you serve.

We provide indispensable services, maintain operations and continue to show up for the community during our own financial difficulties. We exceeded expectations when the flood occurred in December of 2024. All departments worked outside their scopes and united toward the same goal with pride, caring for our city and its residents. Recently Public Works received the 2025 Project of the Year Award and the parks have undergone extensive renovations with the Miranda Park Grand Opening just around the corner.

These success stories come from a united workforce regardless of pay, title or department. While our salaries differ basic needs affect all. Over the past year other bargaining groups and managements have received a two to four percent salary increase. Our proposal is modest and aligns with the city's recent compensation pattern We call for every employee group to be valued and supported.

We hope the City Council will take the time to better understand the needs and realities faced by the employees who help keep daily operations running. We are open to further conversations, and encourage all council members to meet with the union members as well. We want partnership, equity, and investment in the workforce. I appreciate your time.

Thank you

Council, Mayor, City staff. My presentation is not going to be as polished as Annie's but bear with me. Last week we had a presentation for Public Works Week and it was received well by council and city staff stated that they appreciated public works. We would like to see that reflected through within the negotiations Over the past, I forget how many years but since 2008, SEIU has received 15% of an increase which is 30% of a average cost of living.

Other bargaining units have received more. The police for example have received 49.5%. And while it's good for them, we would like to address the deficit that we have now built up over the years. I'd like to summarize one of the slides from the presentation that did not get read because it was long so I'll try to keep it brief and it was about Public Works as first responders and the value and safety that we provide for the city Public Works, our first responders as Ani mentioned, our people were way steep in the water during the floods in December 2023.

Our guys show up to clear the branches, to keep their roads clear. Engineering and streets keep those roads open for the police and the fire. Landscape also helps with emergency response and they keep the city looking good. Water, wastewater and solid waste literally save lives every day. Without those services there would be disease and there would be plagues. You can look historically at the major plagues that have happened throughout history and they have been caused by poor sanitation And our workers are not appreciated necessarily that way. I mean, even myself before I got into public works didn't realize the extent of what our workers do.

So we're not asking for the world. We're just asking for fair compensation for the work that is done by Public Works. Thank you.

Good evening Mayor, Mayor Pro Tem, council members. I've been with the city about four years well almost a little under four years before I came over and I was with the City of Oxnard one thing I constantly heard about the city of Hueneme was they valued their employees they took care of them And since I've been here, I tend to disagree. You know, I appreciate the city.

Just like myself and everybody else, every other employee of this city, they wake up every morning put on their work boots and take care of this city. And all we're asking is in return is for you guys to take care of us. Yes, it would be nice to get great out-of-this world pay raises and benefits. We understand that the current economy but because of the current economy we're asking that you take care of us because every day We do the exact thing. We take care of this city, the city by the sea, take care of all these residents, tourists, visitors and we're just asking you to consider that.

You know, we're not here to diminish any other whether it's police department, management, we all have a vital part in this in the city and just like the body needs the brain, the heart same thing with us So just consider that, appreciate the time. Thank you.

Good evening Mayor and members of the City Council. My name is Theo Provencio, for nearly 13 years I have served as lead water operator for our city and served over four years as chief operator for both our City Water Department and the Port Hueneme Water Agency. I hold the highest state certifications in this city, Distribution 5 and Treatment 3. Every single day my experience allows me to make critical operational decisions that save this city money while guaranteeing clean safe water for our community. I also stand here tonight representing my colleagues as an SEIU steward of over 12 years with the City.

Currently the city is offering a 0% cost of living adjustment in our salary negotiations. With this historic inflation we have all experienced, a zero percent offer is not a freeze it is a pay cut. The rising costs of housing groceries gas and child care mean that dedication alone can no longer pay our bills Right now, frontline SEIU workers feel taken for granted and morale is dangerously low.

But we cannot afford to fall backward. I urge this council to prioritize its workforce. Invest in the people who keep this city running and bring a fair contract to the table. Thank you.

And then Lynn Hale, then Patricia Lippin.

Yeah just one second, our city manager.

I'll just note so this item is not on the agenda and it's not on the agenda but I just wanted to let everybody know that from conversations with the council, conversations with our directors we really do appreciate our SEAU members And we're gonna continue to try to work with SEIU for their knowledge and for the public's knowledge. We've just started negotiations, and we're gonna be going through that negotiation process so we'll continue to try to work with SEIU because it is a really challenging time both city finances wise and all cities are facing sort of struggles right now but also we know that employees are also facing those. So we're trying to do our best to try to find a solution for everybody. So thank you.

Madam Clerk.

My name is Lynn Hale, and I've lived in Port Hueneme since 1985. I'm here as a private citizen, and I'm asking that you take a serious look at your highest expenses on your budgets before you move forward. I've attended recent meetings of the city council and the public employees in the harbor, and am hearing on a repeated basis we don't have enough money to make things work.

And so that's why I'm saying examine your high priority or your high expenses on your budget. Just a little tiny thing, I pulled up a season pass for parking. For resident it's $50 for the year. For a non-resident it's $100 a year. That's not much but that could certainly be increased The sand, the clean ocean, a pier, a view of Channel Islands National Park. My goodness! It's the best there is in Southern California. Come on guys, raise the rent.

The other issue is short-term rentals. I went to a meeting and somebody said to me, oh there's only 12 short-term rentals that are happening in Port Hueneme. Guys, I've got news for you. I live at Surfside 3, I'm in Building 5, we have 33 units. Five of those are short-term rentals. It's illegal to have them in Surfside three for less than 30 days We need you as a city council to back us up, to impose fines. And that's a fundraiser for the city.

We can't because the state legislature has put a cap on what can happen at HOAs. So I'm asking for your help. Do it.

Go ahead City

Manager. Just for your knowledge, the short-term rental item is coming to Council on June 15th so we'll be bringing an item to discuss short term rentals at that time.

You know, it used up. Let's see what am I supposed to say? Thank you, Mayor Pro Tem and City Council and everybody. Thanks. Yeah, you can skip it. You know, it used to be that every technological advance increased jobs and increased the well-being of the population. We're now in this weird system where every tech technological advance makes more billionaires and less jobs We're all going through an incredible period where the people are getting harmed and the budget that I spent all day looking over the budget, and there's a lot of questions.

And I would like to request a special meeting for a public meeting where people could ask questions about the budget not just where we would come in and you could talk about it Or that I could ask questions and then maybe I couldn't get my answers. So, I would like to formally request a special meeting on the budget so that people could come and ask questions and discuss it because we're four square miles, 22,000 people, a $28 million budget We we're at.

We are a beautiful community in an isolated position with the huge responsibility to make sure that we still have the money to continue five years from now. So my request is a special meeting on the budget where people can speak freely and ask questions and get answers. Thank you. Oh my name is Patricia Le Pen I'm a resident of Surfside 3 And that concludes the

general public comments.

Great,

did

you have anything else?

I'll just note specifically about that request. So just as some background so the city now is or has it been on a two-year budget schedule so we actually did hold budget workshops and things like that at the start of that this is the sort of the mid year so that's why there's not a special meeting on that budget item but we as council knows we've talked about having budget workshops Fairly early in coming months ahead of the next two-year budget cycle.

Yes, thank you Okay, we're gonna move on may I have a motion and a second to approve the agenda move to approve Second. All

in

favor?

Aye. All opposed? Hearing none, motion passes unanimously.

Do any members of the council have a conflict of interest to disclose regarding any item on the agenda? Okay, we're going to move to our presentation. Please welcome Director Celia Daniels of the Ventura County Diversity Collective Board to the podium and Mayor Pro Tem Hernandez is going to read the proclamation as you come.

Good evening. My pleasure, my honor to read tonight's proclamation. I'll begin with welcoming Celia Thank you, Mr. Chairman and members of the committee. Pride Month is a continued call to action, to not only recall the trials that the LGBTQ plus have endured but to rejoice in the triumphs and recognize the valuable contributions of these courageous individuals.

And whereas Pride Month is a reminder to reaffirm our commitment to standing in solidarity with the LGBTQ plus community in their ongoing struggles against discrimination and injustice and demand their rights to marriage, equality, workplace protection and civil rights. And whereas it is our obligation to decry hate crimes motivated by sexual orientation or gender identity, bullying and harassment and reduce violence and discrimination by providing protection for the LGBTQ plus individuals fundamental rights. And whereas while historic progress has been made To deliver equality for LGBTQ plus individuals and families in employment, healthcare, housing, lending, military service and education. We recognize that there is still much work to be done and are fully committed to supporting and defending the rights of all LGBTQ plus individuals.

And whereas we recognize the resilience and determination of the many individuals who are fighting to live freely and authentically In doing so, they are opening hearts and minds and laying the foundation for a more just and equitable America. Now therefore be it proclaimed that the City Council of Port Hueneme does hereby recognize and honor June 2026 as Lesbian Gay Bisexual Transgender and Queer Plus Pride Month and call upon the community to celebrate the great diversity of the American people proclaimed this first day of June 2026.

Thank you Mayor Pro Tem. Director Daniels, over to you for some words. Sorry? Would you like to have words?

Sure sure thank you so much I appreciate it. I've been here before but thank you so much for doing what you're doing because this is important focusing on humanity rather than a particular group of people, because I'm not just a lesbian or gay or bisexual. I'm a human being as well. I am a parent. I am an immigrant in this country so there are a lot of intersectionalities that we live with. I have my own business. In fact, we all do.

We work in the tech industry and Emily has her own nonprofit. So there are a lot of things that we do as a person in the community Part of Diversity Collective, we really encourage you. Thank you for supporting us by the way and you read everything that we wanted to say thank you. We want to say that it's important for us too I started out as a trans activist. I was more passionate about the trans community But when I started getting deeper into what the trans community was going through, I saw an ecosystem of issues which was humanity. We had gun violence, we had immigration issues, healthcare issues, so many issues. This is since 2015 I've been working in the community. So a lot of ecosystem of issues and he started working and seeing that what can we do to solve all these problems?

And we can't solve this by ourselves. So we have to work as a city, work with you folks Work as a community, work as an organization to really create that change and that's why Diversity Collective doesn't just focus on LGBTQ communities. We focus on all communities And that has really made a big change including the farming community people with second chance victims trying to get more economic empowerment and also Health Equity.

So these are the spaces we focus and we are here to join hands with you and help in what ventures you are adventuring or your journey, and in any way we can help as a community-based organization And thank you so much for supporting us all the time. It's a pleasure I told my friends let's just go and they all said we have never been here We want to see how the City Council is listen, there we go Thank you so much for what you're doing and really appreciate it.

Great. Thank you And we'd love to come down and get a photo

I'm going to grab pictures from a couple phones, so keep your smile on. One, two, three. One two three.

We will now recess the City Council meeting and call to order the Housing Authority regular meeting. It is now 659. Madam Clerk, please take roll. Member Gama?

Here. Member Lopez?

Here.

Member Perez? Here Vice Chair Hernandez? Here And Chair McQueen-Lajon?

Here We'll now hear public comments not pertaining to the items on the agenda. Comments are limited to three minutes, this process will be the same for other agenda items. Madam Clerk are there any public comments?

No public comments for housing.

Okay we will now move to the consent calendar And we will enact the consent calendar in one motion unless there is an item to be pulled. If not, is there a motion and a second to approve the consent calendar?

Madam Mayor, I don't believe we called for public comment on the consent calendar yet. Just the general

public comment. Okay got it thank you thank you are there any public comments for the consent calendar?

No public comments for the consent calendar on the Housing Authority meeting.

Great thank you and so now we'll move to a motion and a second and then we'll go to a vote.

Move

to approve. Second.

All in favor? Aye. All opposed? Hearing none motion passes. Member Brown is absent.

Great thank you. Madam Clerk do we have,

Yes madam mayor.

Okay thank you will staff please present the report

Good evening chair, co-chair members of board and staff. The item before you this evening is a staff recommendation that the PHA Board adopts a resolution approving the Housing Authority's annual plan and capital budget. Public housing authorities are required to review update and amend their plans and policies annually and hold a public hearing on the plant The main change to this annual plan is within the PHA's administrative plan. We have added Chapter 18, titled RAD PVV and this is in order to comply with HUD federal requirements and legally manage converted public housing units.

The last component of the Housing Authority's annual plan is the adoption of the Capital Fund Budget. The 2026 capital budget is $222,188 which has been allocated to operations and I am available for any questions that you may have.

Great are there any questions? We'll only take questions at this time. Any questions from Council? Go right ahead.

Has the work begun in Willowbrook?

No

And when do we anticipate that beginning?

We're expecting to close at the end of this month.

Thank you.

Great. Looking forward

to it. Me too. Any other

questions? I have one

question.

Go right ahead. Just for the benefit of everybody who's here today, can you speak to where the source of funding comes from for housing? It's federal

funding through the Housing Urban Development. OK.

Thank you.

Any other

questions?

If there are no other questions... Pardon me? We'll now open the public hearing to take public comments. The public hearing is now open, the time is 7.02. Are there any public comments regarding this item? No public comments. Great so the public input has concluded I'll now close the public hearing the time is still 7.0 We have before us the recommendation to adopt the resolution approving the Housing Authority's 2026-2027 annual plan and its capital fund budget. May I have a motion and a second?

Move to approve.

Second. Is there any discussion? If there is no discussion, Madam Clerk please take roll.

Motion passes

Great, there are no other business items so we will adjourn the Port Hueneme Housing Authority regular meeting Due to the summer recess scheduled and the Labor Day holiday, the next regular meeting is scheduled for Tuesday, September 8th, 2026 at 6.30 p.m.. The time is now 7.03. We will now call to order the special joint meeting of the City Council, the Housing Authority and Surplus Property Authority Commission. The time is now 7 o'clock.

Madam Clerk please take roll.

Council members, housing authority members and surplus property authorities commissioners. Gama?

Still here.

Lopez? Here. Perez? Here Mayor Pro Tem Vice Chair and Vice President Hernandez And Mayor, Chair and President McQueen-Lejeune. I'm

here.

And let the record reflect that Housing Authority member Brown is absent.

Great thank you we're gonna move to a public hearing item number one fiscal year 2026 and 27 budget update madam clerk do we have proof of publication as required by law and a complete file and reports and exhibits?

Yes Madam Mayor

Yes, yeah. We will... You asked a question about consent? Yeah did we approve the consent agenda

for this?

There's no consent for the joint meeting there will be consent for the regular City Council

meeting. So we'll now have the report from the staff

Yes and our finance director Ashley Shaparo will be walking us through the budget update. Is she present? Maybe I'll be walking us through it. Guessing she'll come in a moment. Okay. All right, I'll get started. So for this year as we mentioned earlier City Council adopts a two-year budget and this fiscal year 26-27 is year two of the two-year budget. And so okay I'll hand it off.

But so this is year two of the two-year budget and we basically are updating our estimates, updating based on year to date trends new data and updated information. So Ashley will walk us through those changes. I'll use the clicker you can tell me what

to do. Sure Good evening council mayor staff As James was saying, we are currently going through the... We're beginning the second year of our two-year budget that was adopted back in June 2025. This is a time that we get to take to pause now that we have more recent data when we prepare Year 2 during the two-year adopted budget. We're mostly using estimates. We're projecting far out so we pause meet with departments review year-to-date trends any revised cost estimates that we have such as increases That we must absorb that are may be passed on from other agencies. Thank you And update personnel budgets based on union negotiations that may have occurred past the original budget adoption and With this upcoming year, we also have added programmatic changes.

As you all know, we've just heard from housing. We recently have undergone a change within the Housing Authority such as the creation of the HHI nonprofit. In doing that, the adopted budget now needs to be revised with the change of that program and its move over to the nonprofit. So what we have for you are updated estimates since then, all the proposed changes and a updated five year CAP schedule as well.

On June 2, 2025 the general fund FY27 budgeted adopted revenue in the amount of $28.1 million. I forget if this has a pointer to it. It's going to be that second column, the 28073699 figure. As well as expenses in the amount of $28.7 million. With that, we resulted in an estimated deficit of $622,000. The proposed revised budget now anticipates estimated revenues at $29 million with $29.2 in personnel and operating appropriations therefore decreasing that deficit down closer to the $200,000 range.

The deficit was decreased by 400,000. This was mostly reached by attrition of retiring staff, continued implementation of cost saving measures and staff secured grants. I will provide a summary of what makes up those changes in the coming slides but I wanted to give you a summary here so you can see all of the hard work staff has been putting in to try to decrease that deficit and get us closer to balance.

When we adopted the 27 budget, revenue estimates reflected steady property tax, a continued decrease in local cannabis industry revenues and a slight decrease to sales tax. These are projections that we get from HDL which is our third party consultant who works with many other cities throughout the state to provide us projections as they continue to give us updates most of the time we implement those changes they're the experts This time we didn't want to change too much. We didn't want to reduce further as they prescribe and project because we really didn't, we're trying to do our best effort to make sure we're not over conservative at a time where the word is uncertainty for a reason.

We don't wanna overdo it and then come out better than. You will notice that although we're talking about cuts, you're seeing a decrease in the deficit. When you look overall at the revenue, you're seeing an increase of about $900,000 as well on the personnel and operating appropriation in an amount pretty much equal to that. I want to point out that that is a totally separate financial reason, which is because the general fund is now having to absorb some of the staff costs that were previously being funded through Fund 701, which was the conventional housing program through the Housing Authority. Now that the HHI nonprofit is taking over that program, there's still city staff. There are still some city costs. So those do have to be reflected in the general fund.

I want to point that out because it shows we're telling you we're trying to cut. We're reaching out to departments. We'r reducing their operating budgets where Through attrition, decreasing the amount of positions that are available. And you'll see that in the coming slides so when the number goes up and the amount of expense appropriations know that it's because we're essentially creating an entirely new division that was not previously funded by the general fund. It was instead HUD-funded through the housing program.

So I want to walk through, as I mentioned the hard work of all the departments and what we've been where we're trying to find efficiencies in budgeting. Again, we had mentioned with the adoption of the budget that we don't want to impact service levels as much as possible. We want to find reductions that will allow for minimal impacts to the community one of which was attrition that we mentioned Three positions were vacated within this past fiscal year that we are now proposing to unfund.

So no bodies filling these positions. That would be the administrative services coordinator, the facilities maintenance worker and a part-time custodian. What I'm trying to show here is that subtotal of $630,000 which are reductions that departments have made and agreed to understanding that these are the things we can cut with minimal hurt-to-service levels.

But you will also see an increase. You'll see an increase of $230, 000 and these are some increases that are intrinsically out of our control something We must absorb in order to continue the program. For example, citywide CJPA insurance we have to pay our insurance annually. We absorb the cost and the amount that they tell us we're due. The county animal control contract that went up by $50,000 To continue our animal control services at the level that we currently have, we'd have to absorb that cost.

Annual gas and fuel costs are going up. We're predicting from the department about a $50,000 annual estimate at this time. As you know those prices fluctuate consistently is the best estimate we can provide. So after cutting several positions noting additional staff time has been put into finding grants and increases on the revenue end We're decreasing some things that we used to contract and do through a third party, and we're gonna try to do it internally in-house with our current staff.

That's the $630,000 reduction expenses that we're proposing here, absorbing that $230,00 increase. I'm trying to summarize for you that $400,000 reduction in the deficit. This is a chart that we presented to you at the time of budget adoption. So I just wanted to present this as a reminder that when we're talking about attrition, when we're talking about staff levels as being an area that we know we can work on it's because historically these number of positions citywide went up as cannabis revenues and sales tax revenues were doing really well and also increased So when we come to you and let you know that HDL is letting us know that these numbers are starting to decline, it's a little natural to look at the number of positions how they followed that trend and probably need to also follow the trend when we don't have the luxury of some of these periodic or one-time revenue increases.

By recognizing and beginning to address the increase in the spending and number of positions that were increasing early, staff is trying to avoid to wait until it's too late to not have to make more drastic reductions in staff levels. As we know, staff is continuing to try to do more with less resources. Even with these significant cost increases that I'm showing you where facing across the board continues to push our costs back up as we cut.

So essentially each employee's cost increases each year, we know this by the CalPERS expenses that we're facing, the insurance that I mentioned and as well as these annual MOA adjustments that we make so as costs go up we're going to need to find other ways to make reductions One way that I mentioned was reducing the number of personnel authorizations by department.

You'll see that number of positions being reduced as three at the bottom right-hand corner. I wanted to present this slide to show you that all divisions have made adjustments, have tried to reduce as much as they can and so when you look at that number Looking back from the revised 24 budget on to our current 26 budget and our proposed 27 across-the-board Departments have faced reductions in their staff level. It's not just in one area We're trying to spread it across the board again to think of service levels not impacting one department much more than another Those were large general fund changes that are being summarized. Again, this is the change from adopted to the proposed budget.

We will come to you again with a new two-year budget for the FY 28 and 29 year. Moving on to other funds here we're seeing all of their funds other than general fund. I'm summarizing adjustments here Where we gather revised estimates for gas tax as well as grants for CIP that were presenting changes for you now. In housing, we always have annual rent increases and adjustments in Fund 702 our voucher program that is an increased amount of participation that we budget for again these are the vouchers that HUD reimburses us for and we pay out to landlords monthly So you'll see the same revenue increase. You also see a large expense increase for that fund as they go in conjunction.

Water plant budget estimate, the adjustment is for personnel cost updates. This would be the fund that we use to have all of the city operations towards the plant be reimbursed from PHWA. That's that 302 water plant amount. You see minimal changes here because Changes shown are operating expenses only in this slide Mostly the other funds major changes with this proposed budget would be for CIP, which I'll review with you next Any projects that are multi-year or have carryover project balances roll with each budget, as well as any open purchase orders. They're reappropriated with the new year without having an effect on fund balance.

Here we see the amount of general fund specific CIP and capital asset appropriations that we are projecting for FY27. The projects here are all funded by the general fund CIP reserve that we allotted for in the passing of our original adopted two-year budget. We did that intentionally to make sure that we always had enough savings to cover the next few years out of CIP projects for the General Fund Projects include parking lots, underground tank, traffic signal study and Pearson Road storm drain as well as some equipment. There's replacement of age equipment for the fleet division as well as security and facility upgrades.