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NCIP committee votes to recommend $3.5 million of FY26–27 funds to city council to help close budget gap
Summary
The Neighborhood Capital Improvement Program committee voted to ask city council to accept a recommendation that up to $3.5 million of FY26–27 NCIP funds be made available to the city to address a structural budget shortfall, while preserving a plan for an abbreviated NCIP cycle and continuing project prioritization in January 2026.
The Neighborhood Capital Improvement Program committee voted to recommend that staff ask city council to allocate $3.5 million of FY26–27 NCIP funds to help address the city's projected budget shortfall. The motion, amended during debate to clarify priorities and community involvement, passed on a roll-call vote.
The committee's recommendation responds to a council request asking the advisory body to identify a potential contribution from NCIP. Staff explained that next year’s NCIP receipts are estimated at roughly $6.1–6.2 million (16% of monthly transient occupancy tax receipts), and that any transfer could range from zero to the full amount. Committee members stressed options should not automatically strip funding from already approved projects without public input.
Supporters of the recommendation said a partial allocation would demonstrate the committee’s willingness to assist city budget needs while preserving the public-review process. One committee member framed the choice as “some, none or all” of FY26–27 funds, urging flexibility so council can decide how much it ultimately needs.
Opponents and cautious voices urged protecting existing projects and ensuring submitters have a chance to be heard before any approved item is reduced or delayed. Several members argued the committee should continue the regular project-review process and not hastily defund previously approved work without outreach to submitters and neighborhoods.
Public commenters also weighed in during the item: Tom Reeves (online) urged the committee to avoid “offering all your cards” at once and recommended presenting a limited, clearly framed option to council rather than a blanket transfer of NCIP funds.
The committee’s approved motion asks staff to present the $3.5 million recommendation to city council and directs the NCIP committee to hold an abbreviated FY26–27 NCIP cycle so some projects can still move forward. The committee also set a timetable to resume a separate review of inactive or not-started projects in January 2026, so any proposed changes to previously approved items include public notice and opportunity for submitters to respond.
Next steps: staff will send the recommendation packet to city council per the committee’s vote; the council will decide whether to accept the NCIP recommendation and whether to draw funds into the general fund as part of its FY26–27 budget process.
