Palo Alto stormwater oversight panel signs off on FY26 budget memo, hears progress on pump stations and Hamilton Avenue upgrades

The Palo Alto Stormwater Oversight Committee on Wednesday approved a memorandum attesting that the city's proposed fiscal year 2026 stormwater budget aligns with the ballot measure that funds 13 capital improvement projects, and reviewed progress on multiple CIP projects including East Bay Shore/West Bayshore pump station upgrades and the Hamilton Avenue storm drain project.

Committee members and staff emphasized that the fee-funded program remains on track for FY26 even as some construction estimates rose. Staff reported a proposed annual fee increase of 2.4 percent under the ballot measure's CPI-or-6-percent rule, which the presentation quantified as roughly a $210,984 increase in fee revenue for FY26. The committee approved a minor edit to the memorandum inserting language that, based on staff analysis, there is no indication present fee revenue will be insufficient to complete the projects listed in the ballot measure.

Why it matters: the stormwater fee underwrites both ongoing maintenance and a time-limited set of capital projects intended to reduce flooding in known problem areas. Changes in construction costs, easements and permitting can affect project schedules and estimates; the committee said it will continue to monitor bids and reserves and bring any emerging funding shortfalls back to the council.

Most important details

- CIP status and near-term work: Staff said three of the 13 ballot-measure projects are complete and that, once the currently active projects are finished, the city expects to have completed seven of the 13 projects. Hamilton Avenue was advanced earlier and remains a high priority because it carries flows that otherwise pond in neighborhood streets after…