San Mateo previews $350 million CIP with sewer work and parks among top needs

San Mateo City staff on Monday previewed a proposed 2026'31 Capital Improvement Program that lists roughly $350 million in project requests over five years, with sewer rehabilitation taking the largest share and streets, buildings, stormwater and parks following.

"We have about 350,000,000 of project proposals that'll be going forward to council as part of the five year CIP," Public Works Director Matt Fabry told the council during a study session presentation. Fabry said the first-year adoption (FY26'27) will be the binding budget and that annual requests across the five years range from about $66 million to $72 million.

Fabry said the FY26'27 requests include about $40 million for sewer projects, $11 million for streets and transportation, nearly $10 million for buildings and facilities, and smaller amounts for stormwater and parks. He noted the sewer category still includes work tied to the city's clean water program as projects finish and the city turns next to solids-processing upgrades such as a dissolved-air-flotation tank replacement.

The presentation identified roughly $289 million of unfunded needs across categories, with parks and playgrounds topping the needs list at more than $110 million. Fabry singled out Central Park phases 2'4 (about $60 million estimated) and additional phases of the King Recreation and Swim Center as priority unfunded items. He also said a full-scale marina lagoon dredging approach could exceed $80 million, though the city is pursuing spot dredging and expects a construction contract to come to council soon.

Staff described the portfolio of funding sources for the CIP: the general fund, Measure S and Measure CC allocations, a recently created capital reserve, park impact fees and various special revenue and enterprise funds. Fabry said staff propose drawing $10,885,000 from those sources in FY26'27, with a large portion coming from the new capital reserve. He added that Measure S allocations in the next year are reduced to allow that fund to recover after several years of higher use.

Parks and Recreation Director Joanne Magrini told the council that park-impact fees fluctuate with development activity and that recent state housing law changes (Senate Bill 330) mean those fees are now calculated earlier in the development process, delaying when the city actually receives revenue. "Staff are predicting that the fund will not generate any new revenue over the next 12 to 18 months," she said, and recommended strategically reallocating unspent balances from completed projects to sustain near-term park priorities.

Fabry and Magrini also outlined studies and planning work that will affect future capital needs, including a citywide bridge assessment (results expected this summer), a Corporation Yard best-use study for the Pacific Boulevard site, a downtown parking analysis, an updated main library master plan and an updated sewer collection-system master plan. A biogas and biosolids evaluation at the wastewater treatment plant was described as ongoing and expected to finish this calendar year.

Council members pressed staff on measures that affect capital availability. Fabry said portions of Measure S are dedicated to debt repayment, leaving the remainder for capital projects, and that the city is finishing its current smooth-streets program this calendar year. Staff confirmed certain project designs (for example, design funded for the 28th Avenue gap-closure) have grant support while construction funding remains to be identified.

The council was scheduled to revisit the CIP alongside the operating budget at a June study session, with more detailed budget hearings to follow.