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City presents just-over-$100M FY27 capital plan and warns of nearly $1B unfunded backlog
Summary
City staff told the Finance Committee the FY27 capital budget is just over $100 million with a six-year window under $600 million; utilities dominate spending, many projects face cost escalation, and the unfunded list is reported just under $1 billion.
City staff presented the FY27 capital improvement plan to the Finance Committee, saying the first year of the six-year plan is just over $100,000,000 and that the six-year planning window totals just under $600,000,000.
Staff emphasized that utilities (water, sewer, solid waste) are the largest component of the capital program and that transportation is a larger-than-normal share this cycle. They said roughly 57%–60% of capital funds are already spent or encumbered, leaving a more limited pool for new projects.
Mr. Tesh and other staff outlined three main constraints: rising construction costs, limited staff capacity to manage projects, and contractor shortages. Staff gave examples of scope-driven cost increases — Lowry Street moved from resurfacing to full reconstruction and required nearly $11 million more than originally budgeted — and said several greenway and sidewalk projects have doubled in cost since pre‑COVID estimates.
Staff reported the water and sewer fund is sizable: projected cash reserves at year-end are $184,100,000. They also highlighted public-safety capital requests, including site selection and construction for a police evidence vehicle lot and phase 2 of police facility security improvements.
Facility condition assessments by Alpha Facilities (San Antonio) are expected to finish on-site inspections at the end of June and provide an initial draft in August; staff said the assessments will be a primary tool for reprioritizing projects in the fall. An unfunded section on the plan is just under $1,000,000,000, with transportation sidewalks/street projects, public safety facilities (including a public safety center and special operations division building), parks and recreation, bridge replacements and sustainability infrastructure among the largest line items.
Staff advised that some stormwater projects may require new funding strategies because the stormwater fund will eventually be depleted; options include slowing projects, issuing debt or increasing PAYGO. Council members asked for further detail about the landfill life, LED street-lighting progress, parking-implementation updates, and federal funding commitments for the Long Branch trail; staff promised follow-up reports and pledged to return with refined prioritiation once facility assessments are available.
