Issaquah committee reworks CIP priorities as funding tightens, flags REET shortfalls and large projects

May 15, 2025 —00: The City Council Mobility and Infrastructure Committee reviewed the draft 2027—1032 Capital Improvement Plan on Thursday, prioritizing maintenance and facilities repairs while raising questions about funding for large, visionary projects such as an I-90 multimodal crossing and Newport Way rebuilds.

Deputy City Administrator Andrea Schneider and management analyst Jillian Straub presented the biennial CIP draft, which the administration designed to align with the city—iennium budget. Schneider emphasized the plan is a planning document, not a budget: "The CIP is a 6 year plan. It is just a planning document," she said, adding that the plan is used to increase the city's ability to pursue grants and to set priorities for the biennial budget.

The committee discussion identified three funding pressures: - Real estate excise tax (REET): departmental requests for REET in 2027—1028 total about $5.3 million and $4.8 million respectively across the two years, amounts the staff said cannot be fully funded from REET alone and will require prioritization or substitution of funding sources. - Mitigation funds: staff said several mitigation funds trend toward zero balances during the six-year window, reducing options for some projects. - TBD (Transportation Benefit District) sales tax and the NW Sammamish Road project: staff noted a future phase of NW Sammamish Road non-motorized improvements in 2028 is estimated at about $15.5 million; the TBD fund alone cannot support that cost and staff said that phase would likely require debt financing, with debt service implications not yet modeled into the CIP.

The school zone safety fund was a marked exception: council approved an additional camera location in late 2024 and staff said that boost means the school zone fund is projecting about $2 million a year in capital project support rather than the roughly $1 million-per-year seen earlier, allowing transfer of some projects into that revenue stream.

On project priorities, the CIP emphasizes maintenance and facilities upkeep. Schneider said facilities work that has been deferred is now reflected as a priority and that the administration recommends prioritizing facilities maintenance "because we're just catching up on things we haven't done." Staff also included the initial phases of the water treatment plant (land acquisition and design phases) in the CIP to keep the long lead-time program on schedule.

Large, visionary transportation projects such as the I-90 multimodal crossing and light-rail access work remain on the plan but drew questions about timing and funding. Transportation staff said the administration proposes funding 10 percent design from transportation impact fees to position the city to pursue grants, and showed a schedule intended to align construction with the future light-rail station. Council members requested a clearer critical-path timeline and asked staff to identify which near-term projects are essential to keep the city eligible for grants or to maintain project readiness.

Timing: staff said the CIP will return to Council committees in May—1 June, with a Committee of the Whole discussion on June 16 and potential adoption on June 23 to meet state law requirements for the Transportation Improvement Program.

Ending: The committee offered high-level direction to prioritize maintenance and readiness for light rail while asking staff to return with clearer schedules, critical-path milestones for the I-90 crossing and light-rail preparations, and more detail on how REET, TBD and mitigation funds will be balanced in the 2027—1028 biennium.