Milpitas staff present $245 million five-year CIP; council warned of $579-million funding gap

At a Feb. 11 study session, Milpitas public works and engineering staff presented the proposed five-year Capital Improvement Program (CIP) for 2026'30 and a recommended $38.7 million funding plan for fiscal year 2025-26.

Staff described the CIP as a five-year planning tool that lists projects for streets, parks, water, sewer and storm drain systems. Presenters said the draft CIP includes roughly 148 projects with a combined estimated cost of $245 million (staff later summarized the five-year plan as 149 projects totaling the same amount). Staff proposed funding 37 projects in the first year, with a first-year budget of approximately $38.7 million.

Public Works Director Christian Dorenzo and City Engineer Michael Severa highlighted major cost drivers and funding challenges. Staff identified an estimated funding gap across the five-year plan of roughly $57 million to $60 million, with a particular concentration in fiscal year 2027-28. Staff flagged several large projects that contribute to the gap:

- Replacement of an aging force main (Force Main A), built in 1974, estimated at about $20 million and planned for design and replacement in the 2026-27 period. - A pedestrian overcrossing project (Montague pedestrian overcrossing, adjacent to Penitencia Creek) estimated at about $21 million; design is complete but construction funding is lacking. Staff said the project was submitted for…