City presents $24M‑plus 2026 capital program including flood mitigation, paving and a new participatory budgeting pilot

City finance and capital staff presented the proposed 2026 capital program and its funding approach. The plan includes roughly $24.3 million of city capital priorities and seeks to limit new long‑term debt by leveraging grant funds, trust accounts and enterprise fund resources where possible.

Major 2026 highlights are a third year of the flood mitigation program ($10 million), continued citywide roadway paving ($3.6 million), the Pine Brook Complete Streets initial phase (a grant‑backed project), equipment and vehicle replacement cycles ($2.65 million), community forest plantings and tree‑management activities, and a new $500,000 placeholder for a participatory‑budgeting pilot to be fleshed out in 2026.

Staff explained the capital funding mix — bonds, grants, enterprise funds (parking, marina, railroad), trust funds and ARPA — and said they will continue actively pursuing discretionary grants to offset bonding. The presentation also explained capital accounting mechanics (purchase orders, trust‑fund transfers) and noted prior capital investments since 2017, including dredging, paving, stormwater, and the marina deck work under construction.

Council members asked about the community forest fund drawdown and expressed concern about preserving a long‑term replanting reserve rather than using all trust funds in one year; finance staff said the approach was chosen to limit borrowing this cycle while replenishment options and staged bonding remain available. Staff also committed to identify funding sources should council want to add new items during budget adoption.

The capital program will be finalized alongside the operating budget and any council amendments during the December adoption process.