ADMINISTRATIVE REPORT
MEETING DATE: October 22, 2025 AGENDA CATEGORY: Consent - Miscellaneous TO: Honorable Mayor and City Council
FROM: Kristina Budak, Water Director
DATE: September 30, 2025
SUBJECT: Appropriate $88,000 from the Water Resources Enterprise Fund to FY 26 Salaries Budget for positions outlined in the 2025 Supplemental Report to the 2023 Drinking Water Rate Study, with funding sourced from the recently approved and adopted Municipal Water Rate.
RECOMMENDATION:
Staff recommends approval of the appropriation and Council to acknowledge, receive, and file.
BACKGROUND:
On June 11, 2025, the City Council approved and adopted the Municipal Water Rate increase, pursuant to the findings and recommendations outlined in the 2025 Supplemental Report to the 2023 Drinking Water Rate Study (2025 Supplemental Report). The 2025 Supplemental Report identified critical personnel needs within t he Water Department necessary to structurally align the Department, meet regulatory compliance, enhance operational efficiency, and improve service delivery. These personnel requests were also outlined in the 2025 -26 Personnel Memo provided to the City Man ager and the presentation provided to the Budget Committee during the 2025 -26 budget process. However, t he Department was advised that the staffing additions and modifications requested would be contingent upon the approval of the proposed rate increase. Since that action has occurred and at the direction of the City Manager, staff recommend the addition of a new Water Planner position for the Domestic Water unit.
In addition, Staff intends to move forward with the hiring of an Engineer IV in FY 2025–26. This action was coordinated with and approved by the City’s Budget Office in February 2025 and involves repurposing two (2) long -vacant Electrical Technician I positions in favor of a single higher -level role that will provide advanced engineering suppor t for municipal water and wastewater operations, regulatory compliance, and infrastructure planning to address aging infrastructure and Citywide growth.
These staffing adjustments are essential to meet the needs of City -wide growth; obtain and maintain compliance with new and existing regulatory requirements; improve operational efficiencies by addressing aging infrastructure; and support the delivery of critical water and wastewater services to city residents. To support this implementation, the Water Department respectfully requests the appropriation of $88,000 from the Water Enterprise Fund balance to the FY 2025–26 Salaries budget.
FISCAL IMPACT:
Funding for the Water Planner position will be provided through the Water Resources Enterprise Fund.
The Civil Engineer IV position will be funded within existing Water Department Budget by reallocating salary savings from two vacant Electrical Technician positions. This action will have no impact on the General Fund and the Water Department’s compliment will remain at 89.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
1. 2025 Supplemental Report
2. 2025-0225-Approved_CEIV
3. 2025-0326-Water_2025-26 Personnel Memo
4. 2025-0404-Water_2025-26 Budget Committee