Capital
Improvement
Program
Overview
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Erin Wiggin, CIP Manager
Capital Improvement Program Overview
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• Background
• Draft Capital Improvement Program (CIP) presented for Council review and direction
• CIP identifies projects, potential funding sources and schedules over a five-year period (FY27-31)
• Advance projects related to Council Goals and Priorities and infrastructure needs
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FY27 Draft Capital Improvement Program
• FY27- 8 proposed projects with a budget of over $6.3M • Also includes carry-over funding
• In the middle of a two-year budget so changes are mostly related to schedule and funding
• Project scopes have been refined in response to escalating construction costs
• Completed Projects section will be updated for the final version in June Capital Improvement Program Overview
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Parks
• Phases 1 and 2 of Ramona construction
underway
• $3.15M in CDBG funding, remaining funded with
DIF funds leaving $450K funding shortfall
• Council authorized General Fund reserves
along with community donation program
• Additional information provided on April 13
• Mentone Basin Park project planned for FY28
Capital Improvement Program Overview
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Capital Improvement Program Overview
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Public Buildings and Facilities
• Facilities Conditions and Needs Assessment was done in 2023 • Public Works Corporation Yard and the Community Center are at the end of operational life
• Significant deficiencies exist at City Hall and the Police Department • Council concluded that the best option is to start planning for new construction as opposed to rehabilitating existing facilities. • New City Hall and PD is estimated at $20M
• CIP 3003 – ADA Improvements is the only project identified due to lack of funding
Capital Improvement Program Overview
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Streets and Storm Drains
• 2295-17 Measure K-14 – Originally postponed due to delay with sewer upgrades; now on track to start in July
• 2274 – Sidewalk infill will start with above project
• 2250-1 Street Maintenance funding allocations will begin next year for a large project in FY30
• 2295-19 – Construction documents are being finalized, and construction will start once 2295-17 is complete
• Staff is evaluating future street projects relative to sewer upgrades; at this time only 2295-21 could be impacted
Capital Improvement Program Overview
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Streets and Storm Drains
• Of the remaining five Measure K-14 projects (CIPs 2295-17, 19, 20, 21 and 22) Measure K-14 bond funding is not sufficient to fully fund CIP 2295-21 and the entirety of CIP 2295-22
• Staff is recommending the use of LTF funds and SB-1 funds to fully fund 2295-21 along with K-14 funds
• CIP 2295-22 is estimated at $2.6M and is listed as unfunded • Staff will develop a plan to fund this final K-14 project and would seek Council direction on desired timing to bring this forward Capital Improvement Program Overview
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Streets and Storm Drains
• N. 4th Street CIP 2285 is now planned for next fiscal year given multiple projects under construction
• $2.1M in project funds are shown to carry over
• Repair work is recommended to be done within the next year in order to do a grind and overlay as opposed to a most costly full pavement rehabilitation project
• No other major street work is funded at this time.
Capital Improvement Program Overview
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Streets and Storm Drains
• SLOCOG is proposing a ½ cent countywide sales tax in
November 2026
• Measure would generate an estimated $865,712 annually to the City for transportation purposes for 30 years
• SLOCOG Board will consider placement of this measure on the ballot at a future board meeting
• Citizen’s initiative is also being circulated for a similar measure • If either measure is placed on the ballot and approved, staff would bring an item to Council in early 2027 to prioritize this additional funding.
Capital Improvement Program Overview
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Water
• In light of insufficient funding in the Water Enterprise Fund given the existing rate structure, the CIP only includes two projects:
• CIP 4020 – Water Supply Study (underway)
• CIP 4009 – Chemical Feed System for Wells (FY28)
• Once the Water Supply Study is completed, staff would return to Council for direction on beginning a process for an updated water rate structure given the inability of the current rate structure to fund water system needs Capital Improvement Program Overview
Capital
Improvement
Program Overview
• Wastewater
• New rate structure is in place
• CIP 5002-2 is now currently under
construction (the street project will
follow)
• Other projects include lift station
upgrades and upsizing sewer mains.
• Design for CIP 5010 is complete; staff
will apply for CDBG funding per Council
direction with construction starting in
February 2027 if successful
• If grant funding is not received, the city
will seek additional bond funding for the
project supported by the rate structure
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Unfunded Needs - $160M
• Significantly higher than previous years due to identifying additional needs with aging infrastructure
• Police Station and City Hall ($20M)
• Public Works Corporation Yard ($3M)
• Replace Community Center ($6M)
• Citywide Disability Access Improvements ($18M)
• Major Street Rehabilitation ($17M)
• Future Water Supply Project ($40M)
Capital Improvement Program Overview
Capital Improvement Program Overview
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• Fiscal Impact
• Draft CIP FY27 includes projects funded by 8 different funding sources • General Fund - $1,291,000
• CIP 2285 N. 4th (carryover)
• CIP 3003 ADA Improvement project (carryover)
• CIP 2274 Sidewalk infill (carryover)
• CIP 2250-1 Street Maintenance $50K, “save up” funds for FY30 Capital Improvement Program Overview
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• Fiscal Impact
• Gas Tax Fund - $150,000
• N. 4th St. (carryover)
• CIP 2274 Sidewalk Infill
• Local Transportation Fund (LTF) - $250,000
• N. 4th St. (carryover)
• Gas Tax Road Maintenance and Rehabilitation Account (RMRA)/SB-1- $657,840 (carryover)
• N. 4th St.
Capital Improvement Program Overview
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• Fiscal Impact
• Measure K-14 Bond Funds - $2,400,000
CIP 2295-17 (carryover)
• Water Fund - $150,000 (carryover)
• Wastewater Fund - $1,170,000
• CIP 5002-2 (carryover)
• CIP 5003 Front Street Lift Station (carryover)
• CIP 5005 S. Oak Park Lift Station
Capital Improvement Program Overview
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• Summary:
• Staff is seeking input and direction to finalize the CIP GROVERBEACH.ORG
Questions?
Capital Improvement Program Overview
Capital Improvement Program Overview
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