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Council advances five‑year CIP; Holly Street/US‑101 and downtown phase draw major grant support
Summary
Council approved capital‑fund mid‑cycle adjustments that reallocate savings, add grant‑funded work and request a $10 million appropriation for Centennial Plaza; the Holly Street US‑101 interchange accounts for most of an $110 million 5‑year increase and is primarily grant‑funded.
San Carlos approved mid‑cycle adjustments to its capital improvement program on June 22, adding appropriations for large, mostly grant‑funded projects and freeing fund balance by releasing savings from completed projects.
Financial Services Manager Paul Harris told the council the general capital fund shows a $110 million increase in planned five‑year expenditures, of which the Holly Street US‑101 interchange accounts for roughly $103 million. Harris said about $108.5 million of the increase is expected to be funded from outside sources — primarily grants — while the city’s net expenditures over five years are forecast at about $165.2 million.
Staff identified savings of roughly $1.2 million from completed projects (including a repaved asphalt path and Centennial celebration) and recommended moving some projects to later years to free up $2.3 million for high‑priority needs in 2026‑27. New requests for fiscal 2026‑27 included a Pulgas Creek native planting pilot ($500,000), a Holly Street mid‑term project ($7.1M appropriation to be reimbursed by grant), and a proposed $10M appropriation for Centennial Plaza as part of downtown renovations. Several other projects were adjusted or delayed to maintain balanced fund positions across capital funds.
Council members and staff discussed grant reimbursement mechanics (city typically appropriates funds and seeks reimbursement on a cost‑reimbursement basis) and escalating project costs. Paul Harris and staff said the city would only include grants in the budget once awards are secured and that some projects require upfront city funds because reimbursement is not paid in advance.
Council adopted Resolution 2026‑86 approving the capital mid‑cycle changes by roll call (4–0, Vice Mayor absent). Staff will manage appropriations, track reimbursements and return with further details during the next biennial CIP process.
