City staff presented an overview of San Jose’s proposed five‑year Capital Improvement Program (CIP), a $3.4 billion plan that includes about $1.2 billion budgeted for fiscal year 2025–26 and focuses on water pollution control, traffic, airport, and parks and community facilities.

Jennifer Tell, capital budget coordinator, said the CIP reflects $3.4 billion in planned investments across 14 capital programs and highlighted a new biennial presentation format that will emphasize the first two years of the program and provide annual updates for year‑to‑year rebalancing. “This capital budget is the culmination of the work of staff…prioritizing the city's capital needs and balancing them with available resources,” Tell said.

Financing proceeds are the largest funding source at about $864 million, with wastewater revenue notes and bond proceeds supporting major water pollution control projects. Contributions, transfers and interfund loans represent the next largest category; the proposed CIP includes approximately $53 million in general‑fund contributions for items including fire apparatus replacement and a 911 dispatch backup generator.

The presentation noted Measure T — the 2018 disaster preparedness, public‑safety and infrastructure bond — as a major historical contributor to prior CIP totals and estimated that Measure T funds will be exhausted in 2028–29. Airport and federal grant funding were described as uncertain and staff said they will monitor federal grants and adjust programming as needed.

Public Works Director Matt Lesch summarized program highlights across departments: ongoing street repairs and storm‑drain improvements, sanitary sewer collection projects including a fourth major interceptor, major regional wastewater facility work (including aeration‑tank and blower rehabilitation), library capital needs, parks projects (for example Camden Park inclusive improvements and Alum Rock Park road work), continued fire station construction and apparatus purchases, and airport accessibility and airfield projects. Lesch also emphasized communications and radio‑system upgrades for public‑safety operations.

Councilmembers asked technical questions about project carryovers, the biennial presentation format, and the composition of the proposed spending. Staff said annual updates would address carryovers and federal‑grant uncertainties and that the city would continue to invite county and other partners to joint discussions where appropriate.

No capital appropriations were adopted during the session; the presentation was informational as part of the budget study process.