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City staff outline constrained capital outlook; maintenance prioritized over new builds
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Summary
Finance staff told the council the city's capital fund is largely committed to maintaining existing assets, with about $46 million in capital spending in FY26 (roughly $26 million for projects); staff recommended prioritizing maintenance, exploring an increased general fund transfer, and preparing tools such as updated impact fees and a possible public safety bond for larger future investments.
Finance staff presented the city’s capital budget posture and next steps for FY27, emphasizing constrained funds and the need to prioritize maintenance.
Alicia (finance) said the capital fund for FY26 relies heavily on general fund transfers (about 63% of capital funding) and that the current $46 million capital fund includes roughly $26 million allocated to capital projects such as parks, the Depot and 8th Street improvements. She emphasized that impact fees can only be used for growth‑related projects and cannot fund maintenance of existing assets.
Staff highlighted three recommendations for FY27: maintain assets before building new facilities to avoid larger future costs; consider increasing general fund transfers to create capacity for maintenance and smaller investments; and strategically use one‑time year‑end funds for targeted maintenance rather than creating ongoing obligations. Alicia noted that tools such as impact fee updates and a potential public safety bond are still in development and would take time before becoming available for FY27 spending.
Council members discussed departmental maintenance planning, public works’ citywide coordination, and the need for clearer tracking of end‑of‑year funds. Staff estimated a model projection for available year‑end funds in the $2–3 million range and laid out a calendar of budget work sessions, public hearings and proposed budget releases leading to adoption in August.
