SUPPLEMENTAL SPECIAL MEETING (5:00 PM)

SUPPLEMENTAL MATERIAL b. Repair and Replacement Answer: The annual repair and replacement (R&R) expenditures for the last three years average about $3.6M. This amount does not include the R&R funds in the enterprise programs. The totals were $3.1 M for FY 2023/24, $4M for FY 2022/23, and $3.OM for FY 2021/22. The expenditures are estimated at $5.1 M for FY 2025/26 and $3.7M for FY 2026/27 at this point. Due to resource constraints, the City is not able to fund all the R&R projects. The unfunded R&R projects are estimated at $3.9M for FY 2025/26 and $4.1 M for FY 2026/27. In terms of potential impacts from the tariffs, the City has received several notifications from key suppliers who have stated that they will pass any additional expense along, so expenditures may potentially increase when ordering supplies. Staff will continue to monitor expenditures, but it may have a long term impact that would be difficult to forecast. 8. Requesting clarification (exact amounts) of how the $900M in state of good repair is broken down between (can be just categories) between general funds and enterprises funding. Answer: Of the $900M, about $500M is for the General Fund and about $400M is for Enterprise Funds. Please note this $900M does not include all the program areas such as funding gaps for street and roads, parking lots, and sound walls. The outcome of the Asset Management Plan will result in these numbers going up. 9. How are we planning to adjust / address GF reserve in 2025-26... what is it anticipated to be at the budget year end 25/26 & 26/27? Answer: The current reserve is about 21 % of the operating budget. With anticipated increase in expenditures in the upcoming two years, the percentage is expected to drop below 21 %. 12