Seal Beach lays out $45M five-year CIP, eyes billboards, grants and OCTA funds to shore up roads and utilities
Loading...
Summary
City staff presented a roughly $45 million five-year capital improvement program with water projects making up about 36% of the plan; staff flagged federal and state grants, OCTA allocations, and an Olympic-related billboard revenue idea as strategies to help close funding gaps.
At a study session on April 13, Public Works Director Lee presented the draft FY 2026-27 capital improvement program, saying the plan adds roughly $21 million in new projects for a total near $45 million including carryovers and that more than half the plan is funded from restricted or enterprise funds.
Lee highlighted funding sources such as general fund tidelands, restricted roadway funds (gas tax, SB1, RMRA, OCTA M2), and grants. He identified two flagged appropriations: approximately $2,000,000 in congressional directed spending for San Gabriel River trash mitigation and about $1,100,000 from the Surface Transportation Block Grant through SCAG. Lee cautioned that congressional appropriations still require agency (EPA) guidance and application steps before monies can be drawn down.
On transportation, staff said the 2024 pavement condition index was 78 and that preliminary 2026 pavement management plan results show possible improvement primarily due to external fund injections (PMRF, 405 settlement funds). A council member pressed staff to pursue OCTA scoring leverage and outreach; staff confirmed coordination and bid timelines for projects that go through OCTA and other partners.
Water projects total about $16.5 million in the plan and include advanced metering infrastructure (grant application to Bureau of Reclamation pending), Bolsa Chica well rehabilitation (sequenced with Lampson Well work), SCADA control-system upgrades (bids received), and the Navy Reservoir rehabilitation (design funded by rates, construction likely to require debt). Sewer projects (~$5 million) include Pump Station 35 upgrades, mainline CCTV/lining to prevent sanitary sewer overflows, and the Sunset Aquatic Park lift station upgrade.
Council discussion also explored new revenue options. One council member urged expediting a billboard program to capture Los Angeles 2028 Olympic marketing revenue, while staff said legal negotiations and landscape-maintenance-period constraints tied to the 405 widening may delay billboards until 2027 but that public workshops and outreach are planned.
Staff reiterated a key budget constraint: the city implemented water and sewer rate increases in September 2025, which delayed revenue receipts and slowed reserve buildup and debt issuance timing. Finance staff (Barb Arenado) explained funds are invested per code (LAIF and adviser-managed accounts) and that debt issuance requires demonstrable revenue coverage and advisor approval.
Staff asked the council for direction and said they will return with more detailed funding scenarios and budgetary numbers during the formal budget process.
