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Council adopts 10‑year CIP; Measure E supplies roughly half of 10‑year funding, council splits on Measure O reallocation
Summary
Council adopted a 10‑year capital improvement program covering FY25–26 through FY34–35 totaling about $138 million, with staff saying Measure E will provide roughly $70 million over ten years; council debated allocation of older Measure O funds toward public safety versus reserving them for infrastructure.
On May 13 the Arroyo Grande City Council adopted a 10-year Capital Improvement Program (CIP) covering fiscal years 2025–26 through 2034–35 that staff said totals about $138.1 million over the decade and includes major pavement, water, bridge and facility projects.
Administrative Services Director Nicole Valentine said the planning document shifts from a five-year to a 10-year horizon to align long-term planning with Measure E new revenue and other funding sources. The CIP includes nine project categories and identifies the Trafficway Bridge construction, a pavement management program, the Halcyon Road Complete Streets project, water and sewer rehabilitation and other priorities. Valentine said the pavement management program totals approximately $58.3 million and that the CIP anticipates about $21.2 million for water and sewer infrastructure in the period highlighted.
Measure E and Measure O funding: Valentine reported Measure E (the 1-cent local sales tax passed in November 2024) would provide roughly half of the 10-year funding — staff cited figures in the presentation of about $69.9 million to $70.3 million attributable to Measure E over the planning horizon. Measure O (a half-cent tax approved in 2006) remains a revenue source the staff proposes to continue using for public-safety items and limited infrastructure; staff’s draft plan allocates Measure O to a mix of public-safety services (including a larger share of FCFA costs and police positions) and infrastructure funding.
Council debate and action: several council members said Measure E will significantly expand the city’s ability to maintain and restore streets and that organizational capacity must grow to implement the larger CIP. Other council members urged preserving Measure O as primarily an infrastructure fund rather than moving more public-safety costs into it. After discussion the council adopted the 10-year CIP by majority vote (3–2) and approved staff’s recommended program but with an explicit exception to the Measure O allocations that drew divided views; Council votes were recorded with two dissenting votes on the Measure O changes.
Why it matters: the 10‑year CIP maps out how the city will use a new, recurring revenue source (Measure E) together with existing funds, grants and fees to address long-delayed pavement and infrastructure needs. Council members asked for clear public communication about how Measure E dollars will be used and for staff to continue developing grant and implementation plans.
Ending: Staff will present the preliminary FY25–26 budget on May 27 with CIP carry-forward details and project schedules; staff noted the CIP is a living document and will be updated annually.
