Redmond unveils $196 million five‑year capital improvement plan, funds with SDCs and rental‑car tax

Jessica McClanahan, the city’s director of public works and city engineer, told the City Council that the five‑year capital improvement program (CIP) has two main purposes: to keep existing infrastructure in good repair and to plan capacity for future growth. “The purpose of our capital improvement program, is twofold,” McClanahan said.

The draft CIP programs about $196,000,000 in projects across transportation, wastewater, water, parks and stormwater and identifies roughly $200,000,000 in funding sources. Staff said the balance results largely from a projected $11–$12 million rental‑car tax over five years and an increase in transportation SDCs. “We are programming $196,000,000 in projects over our major infrastructure funds,” McClanahan said, and staff described the proposal as a balanced plan under current assumptions.

Why it matters: The CIP sets project priorities and produces the list of candidate projects that the city will consider for inclusion in the next fiscal‑year budget. Staff emphasized the plan’s short‑term certainty and explained that spending in years three through five is less certain and will be adjusted annually.

Key projects and funding highlights: The largest single program area is wastewater, at about $83,000,000, largely for the Redmond Wetlands Complex, a new treatment facility that staff expect will approximately double existing capacity and be complete in 2028. Transportation is the next largest fund with about $68,000,000 identified, anchored by the East Side Arterial project, which staff said will be delivered in multiple phases beginning with construction in spring 2025 and additional phases through 2027. Parks projects total roughly $22,000,000 in programmed spending, including the Central Dry Canyon Park (out to bid) and one large new park in the out years. Water projects total about $20,000,000 and include Well 9 and steel water‑line replacements.

Staff identified the primary revenue sources as SDCs, utility rates, grants, some general‑fund contributions and debt. Staff told the council they expect about $75,000,000 of debt principally associated with a DEQ loan for the wetlands complex and that SDC fee revenue remains an important growth‑paying‑for‑growth tool. McClanahan noted council choices have shaped the plan: “The fifth input here is council prioritization. That’s where we are tonight.”

Questions and tradeoffs: Councilors asked whether the plan adds lighting at the dog‑park parking area and whether SDC revenue assumptions are conservative enough given a recent slowdown in building permits. Staff said the dog‑park parking lot will include lights and that SDC revenue was reduced by about 25% in their projection for next fiscal year to reflect recent permit trends. On risk, Jason Neff, deputy city manager and CFO, told council the city focuses on the first two years of the CIP because they are most certain and the plan will be adjusted annually as economic conditions change.

Details and next steps: Staff invited public review of an interactive project hub (RedmondOregon.gov/maps) and said next steps include prioritizing projects for the coming fiscal year budget and returning with contract awards tied to individual projects — for example, a guaranteed maximum price amendment for phase‑one construction of the East Side Arterial expected on the Feb. 25 council agenda.

Ending: Council did not take action on the CIP at the meeting; staff asked for direction on priorities and will bring budget‑level project recommendations forward with next year’s budget.