At a special meeting Wednesday, April 30, 2025, the Placerville City Council reviewed the draft fiscal year 2025–26 operating and capital improvement program (CIP) budgets and heard department-by-department requests for projects, equipment and staffing. Staff emphasized the city is facing a “very tight budget year,” and council scheduled a second workshop and an open hearing in June to continue work toward budget adoption.

The budget presentation, led by Dave Warren and other department heads, outlined the difference between the operating budget (day-to-day services such as police, public works and administration) and the CIP (street, storm drain, water and sewer projects). Warren told council that the city uses fund accounting and relies heavily on sales tax: “Sales tax makes up 59% of your general fund,” he said, underscoring the revenue volatility staff must assume in forecasts.

Why it matters: Council must balance a relatively constrained operating picture with capital needs — including a single large broadband project staff described as a roughly $20 million build — while keeping reserves for required match on state and federal grants. Staff said the draft budget will be revised after council direction, with an adoption target in June and the ability to amend the final document later.

Major numbers and revenue context

- Staff reported the most recent total operating budget at about $24,780,000 for the 2024 fiscal year (presented as context for FY25–26 planning).
- The CIP spreadsheet in the meeting materials listed a total of $4,634,142 in recommended expenditures across funds.
- Staff identified a single standalone broadband/fiber project estimated at about $20,000,000 that will be programmed in future years.
- Measure revenues: staff said Measure L produces roughly $2,800,000 annually and Measure H about $1,400,000; those local measures are expected to fund street, water and sewer projects and to provide match for grants.

Capital projects and priorities

Engineering and public works detailed projects and funding priorities. Staff said they are not proposing new engineering projects in FY25–26 but are allocating additional funds to ongoing work, including:
- Annual storm drain compliance work driven by the city’s MS4 permit;
- Smith Pratt Road storm drain and paving (construction funding anticipated, with a contract award planned for July);
- Giovanni Road sewer (construction planned in spring 2026);
- Placerville Drive Pedestrian Connectivity Project (construction planned in August; local match expected to maximize federal funding); and
- Canal Street work, where limited federal funding means more local funding likely will be needed to reach construction.

Water reclamation facility (WRF) projects

WRF staff presented five prioritized projects: replacement of digester gas valves and flame arrestors (18 valves, nine arrestors; described as a safety project), replacement of polymer blend units for two belt presses (presented as $40,000 per unit), a primary clarifier drive unit rebuild (about $30,000), recoating of secondary clarifier launders (about $100,000) and a variable frequency drive replacement (about $20,000). Council members were told these items are listed in priority order.

Capital outlay and facility requests

Department heads presented a range of capital-outlay requests in the packet, including police range repairs and materials, police locker replacements for the male locker room, a carport gutter, park furniture replacements, bleachers, an outdoor downtown sound system, a portable stage for events, AEDs for parks and a swamp cooler for the Stamp Mill at Gold Bug Park. Staff materials listed capital-outlay requests that aggregate to roughly $310,398 (figure shown in staff materials); departments proposed to fund those requests from a mix of general fund, enterprise funds and one-time sources.

Public safety equipment and staffing proposals

The police department described several priority items and proposed additional staffing. Chief Ryan (Police Chief) told council that traffic enforcement is a frequent public concern and that a dedicated traffic position plus a motorcycle would help enforcement; he also presented requests for digital rifle sights, a secured Faraday evidence locker and related items. The police department prioritized locker-room storage as its top immediate need, followed by range facility repairs and carport gutters to protect vehicles.

Staffing (ASL) and organizational proposals

Multiple departments requested that the council fund restored or new positions (the staff packet labeled many requests as additional service levels, ASLs). Highlights presented to council included:
- Police: a traffic enforcement officer (motorcycle), an unfunded police officer position for proactive outreach/enforcement, a community-service vehicle abatement officer, and an additional dispatcher so the center can be staffed with two people at all times.
- Development services: unfreezing an administrative assistant position for planning and building counter support (interim development services director Carl Cahill described counter workload and the benefit of clerical support).
- Water/wastewater: a 5% salary adjustment for the chief plant operator (position vacant since June prior year), creation of a senior operator classification as part of an advancement program, and a maintenance mechanic hire to replace a senior mechanic approaching retirement. Staff said some of the WRF staffing costs are assumed in the pending water/wastewater rate study; staff indicated those rate changes will be brought back for council action after budget adoption.
- Public works and community services: a maintenance worker and an office/recreation support position for community services; a deputy public works director to replace the current superintendent role and to assist with mounting regulatory workload; utility service technician positions and an internal maintenance-worker advancement program.

Staff presented a line-item total for the proposed position changes across departments of $1,210,621; staff materials attributed $866,865 of that to the general fund and the balance to other funds (parking, water, sewer, gas tax, grants). Council and staff discussed phasing or holding hires pending the rate study and budget balancing.

Training and conferences

Departments requested training and conference funding across public safety, engineering, public works, recreation and administration. Staff estimated gross conference/training requests of roughly $110,000 and noted a small potential reimbursement from POST (Police Officer Standards and Training) for certain police courses; staff cautioned POST reimbursements and state program levels can change and that projected reimbursements were not guaranteed.

Public comments and policy notes

Council heard a few public- and council-member comments on park amenities (playground replacement funding previously budgeted but not yet spent), downtown event sound system options and the frequency/utility of replacing bleachers and picnic furniture. Several council members pressed staff for clarity on which projects are carryover, which are new, and how measures H and L would be prioritized to provide local match.

Next steps and council direction

Council did not adopt a final budget at the meeting. They scheduled a second budget workshop and told staff to return with a more balanced proposal at that meeting; an open hearing is planned for the first regular council meeting in June and adoption is tentatively targeted for the second meeting in June. Council and staff also agreed to delay certain hires or expenditures until the water/wastewater rate study is finalized and presented (staff said the rate study was expected to be presented on or after adoption, with operational impacts to be implemented later). Council tentatively set Budget Workshop #2 for Tuesday the 20th at 4:00 p.m.

The meeting was informational; council members directed staff to refine priorities, examine phasing options, confirm funding eligibility on Measure H/L and SB 1 sources and return with cost/revenue scenarios at the next workshop.