City presents draft five‑year CIP as paving, park and climate projects face tight funding

City staff presented a draft five‑year Capital Improvement Program and sought council feedback on priorities and funding tradeoffs.

The draft focuses year‑one spending on street rehabilitation (design and partial construction), park improvements (including Libbey Park restroom work and a new playground concept at Sarzot Park), climate and energy modernization projects, key facility repairs and storm‑drain work paired with paving. Staff estimated approximately $14 million of program expenditures in fiscal year 2026‑27 but noted a portion of those items are grant funded (the ATP bicycle/pedestrian phase and some park projects) while local Measure C and other restricted funds cover only part of the program.

Staff warned that, because previous years did not build a CPI escalator into assessment districts and because the pavement program is underfunded, the city’s five‑year pavement management plan may stretch to seven or more years if current budgets hold. Council members and finance staff discussed the need to finalize audit and reserve‑policy work before reallocating general‑fund one‑time money. The council asked staff to refine priorities and return with any recommended shifts; staff said design work can proceed so the city can accelerate construction if an unplanned revenue surplus becomes available.

What’s next: staff will revise the CIP based on council feedback and the pending audit/reserve analysis and present the program for adoption as part of the budget process later this year.