diff --git a/backend/main.py b/backend/main.py
index 6697f0ee..d303056d 100644
--- a/backend/main.py
+++ b/backend/main.py
@@ -11,6 +11,7 @@
 import json
 import os
 import io
+import sys
 
 # Add the project root to sys.path so we can import 'backend' modules
 sys.path.append(os.path.dirname(os.path.dirname(os.path.abspath(__file__))))
@@ -226,37 +227,23 @@ async def create_issue(
     image: UploadFile = File(...),
     db: Session = Depends(get_db)
 ):
-    try:
-        # Save the uploaded image
-        os.makedirs("data/uploads", exist_ok=True)
-        filename = f"{uuid.uuid4()}_{image.filename}"
-        file_location = f"data/uploads/{filename}"
+    # Save the uploaded image
+    os.makedirs("data/uploads", exist_ok=True)
+    filename = f"{uuid.uuid4()}_{image.filename}"
+    file_location = f"data/uploads/{filename}"
+
+    # Offload blocking file I/O to a thread
+    def save_file():
+        with open(file_location, "wb") as buffer:
+            shutil.copyfileobj(image.file, buffer)
 
-        # Offload blocking file I/O to a thread
-        def save_file():
-            with open(image_path, "wb") as buffer:
-                shutil.copyfileobj(image.file, buffer)
+    await asyncio.to_thread(save_file)
 
-        await asyncio.to_thread(save_file)
+    # Generate Action Plan (AI)
+    action_plan = await generate_action_plan(description, category, file_location)
 
     # Offload blocking DB operations to a thread
     def save_to_db():
-        new_issue = Issue(
-            description=description,
-            category=category,
-            image_path=image_path,
-            source="web"
-        )
-        db.add(new_issue)
-        db.commit()
-        db.refresh(new_issue)
-        return new_issue
-
-    new_issue = await asyncio.to_thread(save_to_db)
-
-        # Generate Action Plan (AI)
-        action_plan = await generate_action_plan(description, category, file_location)
-
         db_issue = Issue(
             description=description,
             category=category,
@@ -267,6 +254,9 @@ def save_to_db():
         db.add(db_issue)
         db.commit()
         db.refresh(db_issue)
+        return db_issue
+
+    new_issue = await asyncio.to_thread(save_to_db)
 
     return {
         "id": new_issue.id,
diff --git a/backend/spatial_utils.py b/backend/spatial_utils.py
index 8af329a3..557afe91 100644
--- a/backend/spatial_utils.py
+++ b/backend/spatial_utils.py
@@ -76,10 +76,17 @@ def find_nearby_issues(
     """
     nearby_issues = []
 
+    # Pre-filter using bounding box with 5% epsilon to optimize expensive haversine calculations
+    min_lat, max_lat, min_lon, max_lon = get_bounding_box(target_lat, target_lon, radius_meters * 1.05)
+
     for issue in issues:
         if issue.latitude is None or issue.longitude is None:
             continue
 
+        # Fast bounding box pre-filter check
+        if not (min_lat <= issue.latitude <= max_lat and min_lon <= issue.longitude <= max_lon):
+            continue
+
         distance = haversine_distance(
             target_lat, target_lon,
             issue.latitude, issue.longitude