Staff Report re FY 2026-27 CIP Budget Page 1 of 6
STAFF REPORT
TO:
Mayor and Members of the City Council
FROM: Nathan Bassett, Administrative Services Director VIA: Dan Barros, City Manager
MEETING DATE: May 27, 2026
SUBJECT: FY 2026-27 City Manager’s Proposed CIP Budget
RECOMMENDATION
This item is a study session for informational purposes only. No City Council action is required; however, staff seeks City Council direction in preparing the FY 2026-27 Capital Budget for adoption in June 2026.
COUNCIL ADOPTED VALUES
The
staff recommendation is consistent with the Council adopted values of:
• Responsibility: Making decisions after prudent consideration of their financial impact, considering the long-term financial needs of the agency, especially its financial stability. • Fairness: Support the public’s right to know and promote meaningful public involvement.
BACKGROUND
The budget is an annual planning tool that communicates priorities and sets the Town’s operating and spending policy for the year. The City Manager is responsible for presenting a budget to the City Council according to Colma Administrative Code Section 4.01.030. The financial objective of the budget is to ensure that there are sufficient funds to meet ongoing spending. Special projects and Capital programs, where spending is generally one -time in nature, typically can utilize reserves.
ANALYSIS
For Fiscal Year 2026-27, the primary focus in the CIP will be to complete existing capital projects for closeout. Only one new project is proposed, the IT Systems Assessment, which is intended to provide a thorough accounting of all IT hardware and software systems in the Town, their useful life, and the replacement cycle.
Staff ar
e proposing that the following amounts be appropriated for CIP projects in FY 2026-27.
The General Fund transfer for capital projects would be $1,497,164.
AGENDA ITEM #6
Staff Report re FY 2026-27 CIP Budget Page 2 of 6
General Capital projects are listed in Table 1 below and on the next page, with modifications from the FY 2026-27 City Manager’s Proposed Budget Letter noted by footnotes in Table 1, CIP Budget Request by Fiscal Year, Fund, and Project. The FY 2025-26 CIP Budget Presentation included discussion of a project to install artificial turf at the Colma Community Center and Sterling Park, which is included as part of the CIP Budget Study Session, but was not included in the FY 2026-27 City Manager’s Proposed Budget, and is anticipated to cost $400,000, which would be funded by the General Fund Transfer.
T
he Annual Roadway Rehabilitation and Preventative Maintenance Program is proposed to be funded through Measure A, Measure W, and Gas Tax, on an annual basis, with the remainder of the cost for the program being covered by the General Fund. Over the five (5) year CIP time frame, the General Fund contribution would be approximately $0.5 million. The El Camino Real Sustainable Streets (Segment A) Design project receiving $370,500 in Congressionally Directed Spending (CDS) funding and $48,002 in General Fund transfer appropriations. The remaining projects would be fully funded through a General Fund transfer.
T
able 1 – CIP Budget Request by Fiscal Year, Fund, and Project Fiscal Year Fund Project Amount
2026-27 31 Lighting District Transfer Project $50,000
2026-27 31 Public Arts Program $100,000
2026-27 31 Equipment Reserve $390,962
2026-27 31 Town IT Infrastructure Upgrades $83,200
2026-27 31 Waste Haulers Franchise Agreement $175,000
2026-27 31 HVAC System Upgrade at the Police Department $100,000 2026-27 31 IT Systems Assessment $150,000
2026-27 31 Artificial Turf at the Colma Community Center and Sterling Park1
$400,000
2026-27 31 Sterling Park Recreation Center – New Furnace2 $54,679 2026-27 32 Annual Roadway Rehabilitation and Preventative Maintenance Program
$121,000
2026-27 32 El Camino Real Sustainable Streets (Segment A) Design
$418,502
FY 2026-27 CIP Total $2,043,343
2027-28 31 Community Center Painting $100,000
2027-28 31 HVAC System Upgrade at the Police Department $1,250,000 2027-28 31 Town IT Infrastructure Upgrades $65,000
2027-28 32 Annual Roadway Rehabilitation and Preventative Maintenance Program
$225,000
FY 2027-28 CIP Total $1,640,000
Staff Report re FY 2026-27 CIP Budget Page 3 of 6
Table 1 (Cont.) – CIP Budget Request by Fiscal Year, Fund, and Project Fiscal Year Fund Project Amount
2028-29 31 Town IT Infrastructure Upgrades $65,000
2028-29 32 Annual Roadway Rehabilitation and Preventative Maintenance Program
$225,000
FY 2028-29 CIP Total $290,000
2029-30 31 Town IT Infrastructure Upgrades $65,000
2029-30 32 Annual Roadway Rehabilitation and Preventative Maintenance Program
$225,000
FY 2029-30 CIP Total $290,000
2030-31 31 Town IT Infrastructure Upgrades $65,000
2030-31 32 Annual Roadway Rehabilitation and Preventative Maintenance Program
$225,000
FY 2030-31 CIP Total $290,000
FY 2026-31 CIP Grand Total $4,553,343
1 Artificial Turf at the Colma Community Center and Sterling Park project is an addition to the FY 2026 - 31 CIP Budget and was not previously included in the FY 2026-27 City Manager’s Proposed Budget. 2 The FY 2026-27 City Manager’s Proposed Budget included $25,000 in FY 2025-26 for this project but did not include the $54,679 in grant funding for FY 2026-27.
C
hanges From FY 2025-29 CIP Budget
St
aff are proposing some updates to the forecasted FY 2025-29 CIP Budget, including adjustments to the following projects:
- Equipment Reserve (984) – This project is proposed to become an ongoing funding reserve of $500,000 for electrical, HVAC, and other facility systems that require large scale maintenance updates, or when a system requires work prior to scheduled replacements or upgrades.
- Solid Waste Franchise Agreement Update (992) – Addition of $175,000 in FY 2 026-27 for a scope change that includes hiring a consultant to conduct a new Request for Proposals (RFP) for waste haulers and conduct community outreach. - HVAC System Upgrade at the Police Department (943) – Addition of $100,000 in FY 2026-27 for plans, specifications, and estimates. The planned FY 2027-28 budget remains at $1,250,000.
- Annual Roadway Rehabilitation and Preventative Maintenance Program (906) – Reduce FY 2026-27 Budget to $121,000 from $225,000, funded from the Gas Tax Fund, Measure A Fund, and Measure W Fund. Future years remain unchanged and will be funded jointly by dedicated transportation funding sources and the General Fund. - Sterling Park Recreation Center – New Furnace (948) – Addition of $54,679 in grant funding for FY 2026-27 from Peninsula Clean Energy (PCE, soon to be Westlight Staff Report re FY 2026-27 CIP Budget Page 4 of 6
Energy) to cover the remainder of the cost of transitioning this facility to a fully electric HVAC system.
- Community Center Painting (960) – Move the $100,000 budget for the Community Center Painting project from FY 2026-27 to FY 2027-28.
- C orp Yard Car Wash (954) – Remove this project and the $220,000 in FY 2027-28 from the budget, due to project feasibility and constraints. - Solar Panel Backup Battery Install at CCC (946) – The FY 2025-29 CIP Budget included $300,000 in FY 2026-27 for this project; staff are pausing this project to study options and determine the Town’s future course of action. - Police Drone Program (985) – The FY 2025-29 CIP Budget included $100,000 per year for this project during the four (4) year CIP budget. This project has been moved to the operating budget during the Axon contract approval process in September 2025, and will be funded through the General Fund Operating budget in the future. - Urban Tree Master Plan & Program (998) – The FY 2025-29 CIP Budget included $200,000 per year for the Urban Tree Master Plan & Program. That funding is no longer being requested with the FY 2026-31 Proposed CIP Budget, as Town staff are currently utilizing the existing CIP funding, and will move future maintenance funding to the operating budget.
- Branding & Marketing (959) – The FY 2025-29 CIP Budget included $100,000 per year for Branding & Marketing. Staff are utilizing the existing funding and will request further funding as needed in the future.
- Town IT Infrastructure Upgrades (986) – Town staff are requesting an additional $28,200 in FY 2026-27 funding to cover replacement of additional infrastructure and increasing the baseline request from FY 2027-28 through FY 2030-31 to cover increased hardware costs and build reserves for large future projects, such as server, firewall, and network switch replacement.
- Artificial Turf at the Colma Community Center and Sterling Park (TBD) – Project was not previously included in the FY 2026-27 City Manager’s Proposed Budget, but was mentioned as a future need during the presentation of the FY 2025-26 Proposed CIP Budget. Staff have included it for consideration as part of the FY 2026-27 Proposed CIP Budget. The anticipated project budget to replace the grass at the Colma Co
mmunity Center and Sterling Park is $400,000 in FY 2026-27.
CIP Project Removals and Close Outs
St
aff are recommending that the projects listed below be removed from the CIP. These projects were approved for future years during the CIP budget process in the past, and are no longer planned to take place:
• Co
rporate Yard Car Wash
• Police Drone Program
• Lawndale and El Camino Median Improvements
Staff Report re FY 2026-27 CIP Budget Page 5 of 6
St
aff are recommending the following projects for close out:
• Se
wer Flow Monitoring (938)
• San Mateo County Energy Efficiency Grant – CCAG (942) • Colma Museum Repairs & Rehab (951)
• Facility Parking Lot Repairs (953)
• General Plan Update (991)
• Housing Element Update (996)
• Zoning Code Update (997)
• Hillside Beautification (901)
• F Street Retaining Wall (902)
• Mission Road Bike & Ped Improvement (903)
• Mission Road Landscaping (908)
• Mission Road Crosswalk (909)
• Town-wide Bike & Ped Master Plan (910)
• Lawndale High Visibility Crosswalk (955)
Details of the projects being prepared for removal or close out are included in Attachment A - FY 2026-31 City Manager’s Proposed Capital Improvement Program Plan.
F
ISCAL IMPACT
City Council review and direction on the FY 2026-27 proposed budget and financial plan will not impact the current FY 2025-26 budget. Only projects listed in the FY 2026-27 Capital Improvement Plan budget will be included in the FY 2026-31 Capital Improvement Plan budget.
Projects listed for future years will be reviewed during that year’s budget process. Moving projects between fiscal years will have an impact on the year they are moved from and moved to.
If Council approves the CIP budget as presented in the study session, the FY 2026-27 capital transfer from the General Fund would total $1,497,164 and reduce the current General Fund surplus by $400,000. For FY 2027-28 through FY 2030-31, the cumulative capital program transfer would be approximately $2.0 million, assuming consistent transportation funding for the Annual Roadway Rehabilitation program. Alternate uses for these funds include funding for future projects, reducing the unfunded PERS liability, or other uses determined necessary by the City Council and City Manager.
Staff Report re FY 2026-27 CIP Budget Page 6 of 6
ENVIRONMENTAL
The City Council’s adoption of the resolution is not a project under the California Environmental Quality Act pursuant to Guideline 15378 as it is more akin to a governmental fiscal activity without any commitment to any specific project.
ALTERNATIVES
In addition to providing feedback on the items listed under Proposed Increases and Other Discussion Matters, the City Council may provide direction to staff on budgetary items to add or be removed.
CONCLUSION
Staff is requesting comment from the City Council and the public on the FY 2026-27 Proposed CIP Budget, including the addition of the Artificial Turf at the Colma Community Center and Sterling Park project. A public hearing to adopt the FY 2026-27 Proposed Budget will be held on June 10, 2026.
ATTACHMENTS
A. FY 2026-31 City Manager’s Proposed Capital Improvement Program Plan Active Projects
FY 2025-26 to FY
2030-31 Project
Budget
2025-26
Amended
Budget 2026-27 Budget 2027-28 2028-29 2029-30 2030-2031 2027-28 to
2030-31
Projected
Streets, Sidewalks, and Bikeway
Annual Roadway Rehabilitation and Preventative
Maintenance Program (906)
1,817,583 796,583 121,000 225,000 225,000 225,000 225,000 900,000 El Camino Real Bicycle and Pedestrian
Improvement PSR/PDS (923A)
2,000,000 2,000,000 0 0 0 0 0 0
El Camino Real Bicycle and Pedestrian
Improvement PA&ED @ Colma & SSF (923B)
2,191,920 2,191,920 0 0 0 0 0 0
El Camino Real/Mission Road Access to Transient
Multimodal Crossing (904)
180,000 180,000 0 0 0 0 0 0
El Camino Real Segment B Design (915) 670,000 670,000 0 0 0 0 0 0 El Camino Real Segment B Construction (916) 5,800,000 5,800,000 0 0 0 0 0 0 Serramonte Boulevard West Bicycle ad
Pedestrian Improvement - Phase 1 (911)
2,279,978 2,279,978 0 0 0 0 0 0
El Camino Real Bike & Ped: 5. MTC Capital Design
TA (Seg A Design) (917)
300,000 300,000 0 0 0 0 0 0
El Camino Real Sustainable Streets (Seg A) Design
(918)
418,502 0 418,502
0 0 0 0 0
Serramonte Boulevard West Bicycle ad
Pedestrian Improvement - Phase 2 (912)
0 0 0 0 0 0 0 0
Town-Wide Bicycle & Pedestrian Master Plan
(910)
100,000 100,000 0 0 0 0 0 0
Residential Street Light Program (926) 1,034,550 1,034,550 0 0 0 0 0 0 Lawndale Boulevard RRFB Mid-Block Crosswalk
and Bike Lane Improvement Project (955)
400,775 400,775 0 0 0 0 0 0
Colma Lighting District Transfer (977) 50,000
0 50,000 0 0 0 0 0
Hillside Boulevard Improvement Project (Phase
II)-Design Only (979)
1,400,000 1,400,000 0 0 0 0 0 0
Sewer and Storm Drain
Colma Creek Channel Easement (934) 52,492
52,492 0 0 0 0 0 0
Colma Creek Channel Trash Capture Device (935) 6,345,716 6,345,716 0 0 0 0 0 0 Solid Waste Franchise Agreement Update (992) 208,437 33,437 175,000 0 0 0 0 0 SS Video Inspection (932) 177,100 177,100 0 0 0 0 0 0 SSMP (933) 45,000
45,000 0 0 0 0 0 0
Storm Drain System Assessment and Mapping
(972)
230,348 230,348 0 0 0 0 0 0
Sanitary Sewer System Smoke Testing (966) 123,200 123,200 0 0 0 0 0 0
ATTACHMENT A
Active Projects
FY 2025-26 to FY
2030-31 Project
Budget
2025-26
Amended
Budget 2026-27 Budget 2027-28 2028-29 2029-30 2030-2031 2027-28 to
2030-31
Projected
City Facilities & Long-Range Plans
2023-2025 Cab Connect (999) 43,798
43,798 0 0 0 0 0 0
Bark Park Upgrade (958) 115,000 115,000 0 0 0 0 0 0 Branding and Marketing (959) 200,000 200,000 0 0 0 0 0 0 Colma Museum Repairs & Rehab (951) 29,255
29,255 0 0 0 0 0 0
Community Center Floor Refinishing and Install
(Hardwood Floor) (975)
100,000 100,000 0 0 0 0 0 0
Community Center Painting (960) 100,000 0 0 100,000 0 0 0 100,000 Corp Yard Car Wash (954) 0
0 0 0 0 0 0 0
Cost of Service Study (976) 70,000
70,000 0 0 0 0 0 0
Electronic Sign Board (994) 150,000 150,000 0 0 0 0 0 0 Facility Security CCC, Sterling Park, Corp Yard
(993)
189,857 189,857 0 0 0 0 0 0
Facility security Phase II/Enhancement for PD
(974)
100,000 100,000 0 0
0 0 0 0
HVAC System Upgrade at PD (943) 1,350,000 0 100,000 1,250,000 0 0 0 1,250,000 Public Arts Program (980) 115,000 15,000 100,000 0 0 0 0 0 Solar Panel Backup Install at CCC (946) 13,927
13,927 0 0 0 0 0 0
Sterling Park Recreation Center -New Furnace
(948)
79,679
25,000 54,679 0 0 0 0 0
Title VI Program and Implementation Plan (978) 75,000
75,000 0 0 0 0 0 0
Urban Tree Master Plan & Program (998) 479,060 479,060 0 0 0 0 0 0 Zone Code Amendment (997) 180,000 180,000 0 0 0 0 0 0 Artificial Turf at the Colma Community Center
and Sterling Park
400,000 0 400,000 0 0 0 0 0
Major Equipment, Technology & Fleet
Equipment Reserve (984) 500,000 109,038 390,962 0 0 0 0 0 Financial Software Replacement (965) 1,042,750 1,042,750 0 0 0 0 0 0 Pho
ne System Upgrade (973) 250,000 250,000 0 0 0 0 0 0 Police Drone Program (985) 0
0 0 0 0 0 0 0
Town IT Infrastructure Upgrades (986) 486,768 143,568 83,200 65,000 65,000 65,000 65,000 260,000 IT Systems Assessment (TBD) 150,000 0 150,000 0 0 0 0 0 Total Active Projects (44) 32,045,695 27,492,352 2,043,343 1,640,000 290,000 290,000 290,000 2,510,000 Closed Project
(By June 30, 2026)
FY 2025-26 to FY
2030-31 Project
Budget
2025-26
Amended Budget 2026-27 Budget 2027-28 2028-29 2029-30 2030-2031 2027-28 to
2030-31
Projected
Streets, Sidewalks, and Bikeway
F-Street Retaining Wall (902) 0 0 0 0 0 0 0 0
Hillside Beautification (901) 0 0 0 0 0 0 0 0
Mission Road Bike & Ped Improvement (903) 0 0 0 0 0 0 0 0 Mission Road Crosswalk (909) 0 0 0 0 0 0 0 0
Mission Road Landscape (908) 0 0 0 0 0 0 0 0
Town-wide Bike & Ped Master Plan (910) 0 0 0 0 0 0 0 0 Lawndale High Visibility Crosswalk (955) 400,775 400,775 0 0 0 0 0 0 Sewer Flow Monitoring (938) 0 0 0 0 0 0 0 0
City Facilities & Long-Range Plans
Colma Museum Re
pairs & Rehab (951) 29,255 29,255 0 0 0 0 0 0
San Mateo County Energy Efficiency Grant -
CCAG (942)
0 0 0 0 0 0 0 0
Facility Parking Lot Upgrades & Repairs (953) 0 0 0 0 0 0 0 0 General Plan Update (991) 0 0 0 0 0 0 0 0
Housing Element Update (996) 0 0 0 0 0 0 0 0
Zoning Code Update (997) 0 0 0 0 0 0 0 0
Total Closed Projects (14) 430,030 430,030 0 0 0 0 0 0 Funding Plan
FY 2025-26 to FY
2030-31 Project
Cost
2025-26 Amended
Budget 2026-27 Budget 2027-28 2028-29 2029-30 2030-2031 2027-28 to
2030-31
Projected
Transfer In General Fund 6,498,393 2,920,550 1,551,843 1,519,000 169,000 169,000 169,000 2,026,000 Intergovernmental 11,916,463 10,940,963 491,500 121,000 121,000 121,000 121,000 484,000 Total Funding 18,414,856 13,861,513 2,043,343 1,640,000 290,000 290,000 290,000 2,510,000 Surplus/Deficit (13,200,809.00)$ (13,200,809.00) $ - $ -$
-$
-$
-$
-$
Note: FY 2025-26 Amended Budget shows a deficit due to carry forward of prior year expense budgets aduring the FY 2025-26 Mid-Year Budget Amendment process, while revenues were primarily recorded in the year earned or previously designated. Further reconciliation of remaining available grant funding may lead to an adjustment of the outstanding revenues during the FY 2026-27 Mid-Year Budget Amendment process.
FY 2026-27 Capital Project Descriptions
Li
ghting District Transfer Project – Amended Budget
The C
olma Lighting District (District) is owned and operated by the San Mateo County Lighting District. It has been the Town’s desire to take over the Street lights in the Town that are currently owned and operated by the district. The district is able to fund operation and maintenance, (O & M) through pro perty tax. The Colma Lighting District also has substantial reserves in holding to assist in supporting ongoing O & M costs.
This study will explore a couple of option:
1. The Tow
n would pursue ownership of their portion of the lighting district only if the annual property tax review would come back to the Town and their portion of the reserves would be granted over to serve as seed money support the Street light system.
2. If ownership is not attainable, the Town could pursue an agreement with the District whereas the Town would assume all O & M of the street’s lights, in turn the Town would want the annual revenue through the property tax and their portion of the reserves.
In either scenario, the Town would need to set up a Street Light Enterprise Fund to operate and maintain the streetlights.
B
udget $50,000 FY 2026-27 -General Fund
E
quipment Reserve - Amend Budget
A
n Equipment Reserve Fund is a dedicated financial reserve used to replace aging assets. It prevents sudden, budget-breaking expenses by gradually setting aside funds over the equipment’s useful life, so capital is ready when upgrades are needed. The intent is to keep a minimum fund balance of $500,000. Recommended annual contributions to the fund will be made by the Town of Colma’s Finance Department and approval from City Council.
B
udget $390,962 FY 2026-27 – General Fund
S
olid Waste Franchise Agreement Update- Amended
I
n 2016 the granted a Franchise Agreement to Allied Waste Services of North America, LLC (“Republic Services”) for recyclables, organic waste, and garbage collection and processing services within the Town of Colma. The term of the Franchise Agreement is for 10 years. In 2026, the Town will either have to go out to Request for Proposals (RFP) for a new Waste Hauler or renegotiate a new agreement with terms and conditions. At the March 11, 2026, City Council Meeting, City Council agreed to extend the Waste Hauler Franchise to August 30, 2028. City Council instructed the City Manager to proceed with an RFP for a new waste hauler franchise agreement. Because the project grew in scope, going from amending the original agreement and now going to an RFP process, a project amendment is now required. The budget increase is due to the hiring of a consultant to work with staff and oversee the proposal process, establishing the new parameters of the franchise agreement and working with staff and the community to have a profound public outreach effort brough to both residents and businesses. Cost recovery for this process may be amortized into the annual franchise fees so they can be paid back to the Town.
A
mended Budget: $175,000 FY 2026-27 – General Fund
H
VAC System Upgrade at the Police Department
The H
VAC system at the Colma Police Station shows signs of failure due to exposure to the weather, quality of the equipment and everyday normal use, (because the Department is open 24 hours, some of the units are used continuously). The other issue that the Department will face is the current HVAC system using R-22 refrigerant.
Production of R-22 refrigerant will not be manufactured after 2020 due to its harmful effects to the environment. The project will be broken into two phases, phase one plan and specification, phase two construction.
B
udget:
Plans, Specifications and Estimates FY 2026-27 $ 100,000- General Fund C
onstruction/ Management FY 2027-28 $1,250,000– General Fund E
l Camino Real Sustainable Streets (Segment A) Design
C
/CAG and the Town have agreed to allocate $370,500 of the Fiscal Year 2024 Congressionally Directed Spending program under the San Mateo County Sustainable Streets Design Pilot Project for the El Camino Real Sustainable Streets Project Segment A. The funding will be purposed for the design of the sustainable landscaping (green infrastructure) that is planned to be incorporated into the El Camino Real Sustainable Street Project, (part of the El Camino Real Bicycle and Pedestrian Improvement Project)
The Fi
scal Year 2024 Congressionally Directed Spending program, administered by the Federal Highway Administration, requires an 11.47% non-federal local match from Colma, totaling $48,002. The local match corresponds to the full grant amount of $370,500 allocated to the El Camino Real Sustainable Streets Project (Segment A, From Albert Teglia Dr. to Mission Road on El Camino Real). • Fi
scal Year 2024 Congressionally Directed Spending (CDS) funds $ 370,500 • Proposed CIP Allocation for FY 25-26 (Local Match 11.47%) $ 48,002 B
udget $418,502 FY2026-27 Grant Funded & General Fund
A
nnual Roadway Rehab Allocation – Amended Budget
Will start assembling plans and specifications for the Colma Boulevard and 400 Block of Serramonte Boulevard, Junipero Serra Boulevard and Collins Avenue. The proposed surface treatment will be a microsurfacing treatment. The project will also include street striping and markings. Future years are budgeted at $225,000. This project receives funding from the Gas Tax Fund, Measure A Fund, and Measure W Fund, in addition to the General Fund transfer.
Budget: $121,000 FY 2026-27 – General Fund & Dedicated Transportation Funds $225,000 FY 2027-28 - General Fund & Dedicated Transportation Funds $225,000 FY 2028-29 - General Fund & Dedicated Transportation Funds $225,000 FY 2029-30 - General Fund & Dedicated Transportation Funds $225,000 FY 2030-31 - General Fund & Dedicated Transportation Funds Sterling Park Recreation Center, New Furnace- Amended Budget The existing gas furnace at the Sterling Park Recreation Center is nearing 30 years in age. The current furnace has been less than efficient over the last several years and maintenance costs have risen. The new system will be redesigned to not only incorporate heat but will also have air conditioning making it a full HVAC system. The system will also be a full electric HVAC system , staying true to the Town’s sustainability goals in reducing greenhouse gasses. In this effort, Peninsula Clean Energy (PCE) has granted to the Town an amount of $54,679 to assist in the effort to install a new Electric Heat pump and Air condition system at the Recreation Center.
Costs for the new HVAC system will be inclusive of new equipment, associated sheet metal work, any required sub trades, and all labor costs. $25,000 was originally budgeted for this project in FY 2024-25.
Amended Budget:
PCE Grant $54,679 – Addition with FY 2026-27 CIP Budget General Fund $25,000 – Included in FY 2025-26 CIP Budget Total amended Budget $79,679
Public Arts Program – Amended Budget
The P
ublic Arts Program is a recurring project used to fund investments in Public Art within the Town. For the 2024 Centennial celebration, this project was used to fund a mural on the F Street Retaining Wall. Future expenditures will be recommended by the Culture and Arts Subcommittee to the full City Council, and may include murals, sculptures, or paintings for public facilities or in the public right-of-way.
A
mended Budget: $100,000 FY 2026-27 – General Fund
I
T Infrastructure Upgrades – Amended Budget
Thi
s project is the recurring annual investments the Town makes in IT hardware assets and IT system replacement projects, such as servers, switches, and firewalls. For FY 2026-27, Town staff anticipate replacement of 8 network switches, 15 computer terminals, and will reserve $20,000 for anticipated future replacement costs, and unanticipated hardware replacements. The FY 2025-26 budget proposed $55,000 per year between FY 2026-27 and FY 2028-29.
A
mended Budget: $83,200 FY 2026-27 – General Fund
$65,000 FY 2027-28 – General Fund
$65,000 FY 2028-29 – General Fund
$65,000 FY 2029-30 – General Fund
$65,000 FY 2030-31 – General Fund
I
T Systems Assessment – New Project
The I
T systems assessment project is a comprehensive review of all hardware, software, and Internet-of-Things (IoT) components that the Town uses. This includes a review of any systems within the Town to define the user base, review subscriptions, document hardware and software, and the useful life of any IT assets, as well as identify replacement timelines and ongoing needs. The assessment will provide a short to medium-term roadmap for future IT spending, with recommendations on IT system structure and specifications.
B
udget: $150,000 FY 2026-27 – General Fund
Ar
tificial Turf at the Colma Community Center and Sterling Park – New Project Thi
s project would replace the grass near the flagpoles at the Colma Community Center and in Sterling Park with artificial turf. This project was initially proposed during the FY 2025-26 CIP budget presentation and would reduce maintenance and water costs for these Town properties.
B
udget: $400,000 FY 2026-27 – General Fund