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Budget workshop: Council reviews $15.5M CIP, reserves and potential arterial rehab request
Summary
Finance staff presented the draft two‑year budget and capital improvement plan, highlighting a $15.5 million CIP in 2025–26, projected reserve positions, and an unfunded arterial road rehab proposal (New Hope/Ward/Ellis/Slater) that would require an additional $1.5 million in general fund support if included.
At a study session on May 6 finance staff reviewed the draft biennial budget for fiscal years 2025–26 and 2026–27, focusing on the general fund, revenue projections and the capital improvement plan. Staff reported relatively flat sales‑tax expectations, higher investment income tied to current interest rates, and a projected operating surplus in year one leading to a modest net decrease in fund balance once capital and internal allocations are included.
The proposed capital improvement plan totals approximately $15.5 million in the coming year (with $4.9 million in general‑fund projects) and includes major street projects (annual residential roadway rehab at about $3.6 million and a Talbot/Euclid rehab in the $3.5 million range with partial general‑fund allocation). Staff flagged a separate unfunded arterial project (New Hope/Ward/Ellis/Slater) for council direction; the project estimate is roughly $4.2 million with about $1.5 million of additional general‑fund need.
Councilmembers raised contingency planning for potential sales‑tax declines, asked staff to coordinate with Public Works and OCTA on large arterial projects, and supported prioritizing long‑lived road re‑builds where possible. Staff noted they will return with a refined proposed budget on June 3 after updating sales‑tax assumptions and finalizing fee projections.
