Costa Mesa staff propose $33.4 million CIP as council wrestles with CAN accounting and park priorities

City staff presented a preliminary FY 2026–27 Capital Improvement Program (CIP) totaling about $33.4 million at a March 31 special study session of the Costa Mesa City Council, and councilmembers pressed staff on how to meet the city’s Capital Asset Needs (CAN) ordinance and how to prioritize limited general-fund dollars across parks, streets and facilities.

Raja, a longtime public-works staff member who led the presentation, said the recommendation includes 39 projects with a proposed split of funding that relies on future bond financing, grants and several local sources. "We're recommending a total of 39 projects with a total CIP amount of 33.4," Raja said, noting a planned $12 million in future bond financing tied to Fire Station 2 and grant awards of roughly $5.7 million.

Why it matters: The council must adopt the full budget, including the CIP, by June 30. Councilmembers signaled they will weigh small, safety-driven items against larger, higher-profile projects as they refine allocations this spring.

Staff and the PACS commission framed the discussion around prioritization and deferred projects. City Engineer Sun Yang and other presenters highlighted near-term…