Tracy council accepts staff report on proposed FY26 capital budget, schedules CIP steps

Tracy City Council on Tuesday voted to accept a staff report on the proposed fiscal 2025'26 capital improvement program (CIP) and a five'year CIP outlook.

The council'wide acceptance follows a staff presentation summarizing carryover project commitments, proposed appropriations and funding sources for nine CIP categories including general government and public safety facilities, streets and highways, wastewater, water and parks. Felicia Galindo, the city's budget officer, told the council the CIP outlook is a planning tool, not an appropriation of funds.

Why it matters: Accepting the report moves the CIP into the formal public review schedule and enables staff to seek outside grant funding where appropriate. Staff and council members also used the review to highlight near'term priorities such as police radio replacements, road projects including Coral Hollow widening and transit infrastructure.

Most important facts: The CIP outlook as presented groups projects into nine categories (71'79). Significant carryover funding includes roughly $105 million for streets and highways, $33.6 million for wastewater, $11.8 million for water, $9.1 million for airport and transit, and $128 million for parks and recreation (carryovers and prior commitments). Staff singled out several funded proposals for FY26 such as police radio replacement, traffic calming, an annual sidewalks program (a 50/50 resident cost sharing), concrete and resurfacing work under annual road improvements, and wastewater plant equipment replacements. The Measure V priorities remain: an aquatic center (projected Measure V commitment ~$55 million), a nature park and the Ritter Family Ballpark; staff noted the ballpark budget estimates will likely be higher by the time funding accumulates.

Council direction and next steps: The council accepted the staff report and staff said the CIP will go to the Planning Commission on June 11, and will be included with the FY25'26 budget for adoption on June 17. Galindo emphasized the outlook is not an appropriation and that individual projects still require appropriations when the council chooses to fund them.

Public comment and clarifications: During the public comment period residents pressed the council for attention to several downtown historic properties owned by the city, including the Grand Theater complex and the old City Hall and jail, urging the city to move those projects onto a funded schedule. Staff replied that the historic City Hall/jail is on the list as an unfunded project with an engineering estimate of about $1.5 million and that the city is pursuing grant funding (Department of Interior and state historic funds).

What the vote did: The motion to accept the CIP report passed by roll call vote; councilmembers recorded in the roll call were Mayor Pro Tem Abercrombie, Councilmembers Raydoria, Nygaard and Evans and Mayor Areola (vote recorded as unanimous). The acceptance advances the CIP into the public review and budget adoption process but does not appropriate funds.