Hanford reviews final Capital Improvement Plan, Measure H capital priorities and early plans for Public Safety building

At a Hanford City Council study session, city finance and engineering staff presented the final review of the Capital Improvement Plan (CIP) and the capital portion of Measure H, outlining projects, funding assumptions and next steps ahead of formal budget adoption.

City Finance Director Chris Tavares told the council, “There is no surplus in the general fund for this upcoming budget year.” Staff said any recommended capital spending beyond identified revenues would come from the city’s general fund reserve and that the CIP presented is the final formal review before operating-budget presentations and a June 3 public hearing for budget adoption.

Why it matters: the CIP and Measure H will guide spending on major projects over multiple years, including public safety facilities, transportation projects, parks improvements and other capital needs. How the city sequences projects, uses reserve funds and pursues grant matches will shape near-term services and long-term fiscal health.

Key details

- Timeline and process: staff called this meeting the final formal CIP review; the operating budget is scheduled for review in May, followed by a June 3 public hearing for budget adoption. Staff also noted an AB 2561 vacancy-rate report will be presented before adoption.

- General fund stance: staff said the general fund shows no surplus for the coming year and that any new projects identified in the CIP would require drawing on general fund reserves. Tavares said the city’s reserve is about $12,000,000 (roughly 28% of the target), and the council’s 35% reserve goal implies a target near $16,000,000 — roughly $4,000,000 more than current reserves.

- Year-by-year impacts: staff flagged an estimated negative reserve contribution of about $913,000 in fiscal 2026 in the CIP presentation; the figure is shown as an estimated reserve draw pending council direction and grant outcomes.

- Measure H capital: the Measure H oversight board unanimously recommended the capital plan presented to council; Measure H took effect April 1 and staff said the first Measure H receipts are not expected until July. Several Measure H projects are multi-year and will rely on both the Measure H allocation and other funding mechanisms.

- Public safety building and Fire Station 4: staff described the Public Safety building as a multi‑million (tens of millions) dollar project and said initial needs assessment and preliminary planning alone would exceed $1 million. Staff indicated early stages of both the Public Safety building and Fire Station 4 could be funded on a “pay-as-you-go” basis for the first planning years, but full delivery of the Public Safety building likely will require bonding or other long-term financing and review with the city’s financial advisor (NHA Advisors).

- Grant‑dependent projects and matching funds: staff emphasized several projects shown as grant-funded are contingent on award. Examples discussed include the Greensville Ninth Avenue roundabout (federal grant), and a grade-separation project noted to require matching funds. Council members asked whether matching funds would be needed and how timing of reimbursements affects cash flow; staff confirmed matching or local commitment would be required where shown.

- Other CIP topics covered: transportation (Traffic signal controller and battery backups, TDA, CMAQ projects), airport capital anticipated to be funded from future fuel sales revenue, parks and recreation capital including a multi‑generational indoor recreation facility in later planning years, and an aquatics reserve project for slide repair at the Plunge.

Council and staff comments

Vice Mayor Paden and other council members asked for clarification on when Measure H funds will arrive and how conservative the staff revenue projections are. Staff said the Measure H receipts are projections and may vary up or down when actual receipts begin in July. Several council members pressed staff on the scale of the Public Safety building and the timing of land acquisition; staff said the city does not own the potential site discussed and would return with more detailed site and financing analysis if council wants to proceed.

Staff noted that many funds outside the general fund are balanced in the CIP presentation; where funds show brief negatives it is understood as timing/cash flow rather than an expectation of a permanent deficit. Where a non‑general fund lacks cash, staff said the city would typically need an internal loan from the general fund — a practice the CIP attempts to avoid by balancing those funds.

What’s next

Staff will present the operating budget in May, then a June 3 public hearing for budget adoption. Staff also will return with further analysis on funding options for large projects such as the Public Safety building (including potential bond structures) and will work with the city’s financial advisor on funding strategies.