Citizens' Oversight Committee
City of Placentia
Capital Improvement Forecast
March 17, 2026
Glenn Casterline
Bob McKinnell
Joe Rasic
Fiscal Sustainability Assessment Process
i
General Fund Budget
General Fund Characteristics
Non -Discretionary Schedule Timing
Personnel
Utilities
Debt Service
1 General Fund Forecast
Capital Improvement
Budget
Capital Improvement Characteristics
Discretionary Schedule Timing
Infrastructure Maintenance
Infrastructure Improvement
v
Capital Improvement
Forecast
Discretionary Fiscal
Reserves
General Fund Budget Surplus
Measure U
Sustainability is confirmed when balanced forecasts address all identified service needs over the long term while maintaining desired level of fiscal reserves to meet unanticipated circumstances
Capital Improvement Forecast Vs.
Capital Improvement Plan
• Capital Improvement Forecast
— Long range (20 years) forecast used to estimate the
City's total Capital Improvement needs by project
category
— Revenues dedicated to capital project use are also
estimated to determine general fund requirement
• Capital Improvement Plan
— Yearly, prioritized identification of specific Capital Projects, their scope and cost
— Projects identified in the plan are authorized by City Council on a case by case basis
— Projects may "pop-up" which need to be addressed,
but were not in the plan
Capital Improvement Project Categories
• Streets and Streetscapes
• Traffic and Transportation
• Storm Drains
• City Buildings, Facilities, and Parks
• Technology
• City Vehicles and Equipment
• Public Safety Vehicles and Equipment
• Major Studies
• ADA Transition Plan
Forecast Methodology
• Expenditures were estimated by category and time
frame
— Short term (Years 1-2), immediate or critical need
— Near term (Years 3-5), identified need
— Mid-term (Years 6-10), depreciation
— Long-term (Years 11-15) replacement
— Future (Years 16-20) replacement
• Previous and ongoing study results provided estimates for many program categories
• For categories where there was no preexisting data,
estimates were generated by City staff and reviewed by
the Oversight Committee
Capital Improvement Project Resources/Needs
Summary of Spending Needed per Year By Forecast Interval General Fund Contribution Required
Description
1 Streets and Streetscapes
Forecasted Expenses
Revenues Dedicated to Support Streets and
A Measure M
B SB1/Gas Tax
2 3
4 5
6 7
8 9
Annual Short Fall for Streets and
Other Capital Needs
Traffic and Transportation
Storm Drain
City Buildings, Facilities and Parks
Technol ogy
City Vehicles and Equipment
Public Safety Vehicles and Equipment
Major Studies
ADATransition Plan
Total Needed to Fund Identified Capital
C Measure U (50% of Revenue for All
Total Shortfall
Short Term
1-2 years
($ 4,567,500)
$ 1,100,000
S 1.500.000
($ 1,967,500)
($ 1,732,426)
($ 2,886,570)
($ 3,176,746)
($ 585,000)
($ 162,400)
($ 600,000)
($ 23,850)
($ 1,955,059)
($ 13,089,551)
$ 4,400,000
($ 8,689,551)
Near Term
3-5 yrs
($ 4,905,000)
$ 1,250,000
$ 1,750,000
($ 1,905,000)
($ 2,302,624)
($ 2,224,665)
($ 3,529,009)
($ 541,667)
($ 174,887)
($ 600,000)
($ 16,800)
($ 2,099,521)
($ 13,394,173)
$ 4,500,000
Mid -Term
6-10 yrs
($ 4,825,951)
$ 1,350,000
$ 2.000.000
($ 1,475,951)
($ 2,085,612)
($ 1,157,780)
($ 3,469,865)
($ 486,000)
($ 235,952)
($ 625,000)
($ 46,480)
($ 2,330,661)
($ 11,913,301)
Long Term
11-15 yrs
($ 5,122,079)
$ 1,425,000
$ 2.000.000
Future
16-20 yrs
($ 5,250,000)
$ 1,450,000
$ 2.000.000
(5 1,697,079) ($ 1,800,000)
($ 810,749)
($ 672,421)
($ 6,159,736)
($ 488,000)
($ 228,321)
($ 625,000)
($ 25,020)
($ 2,619,586)
($ 13,325,912)
($ 938,553)
($ 779,520)
($ 5,499,568)
($ 531,920)
($ 312,687)
($ 625,000)
($ 57,580)
($ 2,908,511)
($ 13,453,339)
$ 4,600,000 $ 4,750,000 $ 5,000,000
($ 8,894,173) ($ 7,313,301) ($ 8,575,912) ($ 8,453,339)
Streets and Streetscapes
• City receives revenues which must be spent on streets and streetscape
— Measure M, SB1/Gas tax
Description
1 Streets and Streetscapes
Forecasted Expenses
Revenues Dedicated to Support
A Measure M
B SB1/Gas Tax
Short Term Near Term Mid -Term
1-2 years 3-5 yrs 6-10 yrs
Long Future
Term
11-15 yrs 16-20 yrs
($ 4,567,500) ($ 4,905,000) ($ 4,825,951) ($ 5,122,079) ($ 5,250,000) $ 1,100,000 $ 1,250,000 $ 1,350,000 $ 1,425,000 $ 1,450,000 $ 1,500,000 $ 1,750,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 Annual Short Fall for Streets ($ 1,967,500) ($ 1,905,000) ($ 1,475,951) ($ 1,697,079) ($ 1,800,000) and Streetscapes
Other Capital Needs
Annual Short Fall for Streets and ($ 1,967,500) ($ 1,905,000) Streetscapes
Other Capital Needs
2 Traffic and Transportation
3 Storm Drain
4 City Buildings, Facilities and Parks
5 Technology
6 City Vehicles and Equipment
7 Public Safety Vehicles and
8 Major Studies
9 ADA Transition Plan
($ 1,732,426) ($ 2,302,624)
($ 2,886,570) ($ 2,224,665)
($ 3,176,746) ($ 3,529,009)
($ 585,000) ($ 541,667)
($ 162,400) ($ 174,887)
($ 600,000) ($ 600,000)
($ 23,850) ($ 16,800)
($ 1,955,059) ($ 2,099,521)
($ 1,475,951) ($ 1,697,079) ($ 1,800,000)
($ 2,085,612) ($ 810,749) ($ 938,553)
($ 1,157,780) ($ 672,421) ($ 779,520)
($ 3,469,865) ($ 6,159,736) ($ 5,499,568)
($ 486,000) ($ 488,000) ($ 531,920)
($ 235,952) ($ 228,321) ($ 312,687)
($ 625,000) ($ 625,000) ($ 625,000)
($ 46,480) ($ 25,020) ($ 57,580)
($ 2,330,661) ($ 2,619,586) ($ 2,908,511)
Total Needed to Fund Identified ($ 13,089,551) ($13,394,173) ($ 11,913,301) ($ 13,325,912) ($ 13,453,339) Capital Needs
C Measure U (50% of Revenue for $ 4,400,000 $ 4,500,000 $ 4,600,000 $ 4,750,000 $ 5,000,000 All Infrastructure)
Total Shortfall ($ 8,689,551) ($ 8,894,173) ($ 7,313,301) ($ 8,575,912) ($ 8,453,339)
Capital Improvement Project Resources/Needs
"Annualized " Spending Needed Per Year
General Fund Contribution Required
Description "Annualized:"
1 Streets and Streetscaaes
Forecasted Expenses
Revenues Dedicated to Support Streets and
A Measure M
B SB1/Gas Tax
Annual Short Fall for Streets and Streetscaaes
Other Capital Needs
2 Traffic and Transportation
3 Storm Drain
4 City Buildings, Facilities and Parks
5 Technology
6 City Vehicles and Equipment
7 Public Safety Vehicles and Equipment
8 Major Studies
9 ADATransition Plan
($ 4,992,008)
$ 1,353,750
$ 1,912,500
($ 1,725,758)
($ 1,477,365)
($ 1,274,787)
($ 4,629,318)
($ 516,230)
($ 236,713)
($ 618,750)
($ 37,175)
($ 2,475,124)
Total Needed to Fund Identified Capital Needs ($ 12,991,219) C Measure U (50% of Revenue for All $ 4,702,500
Total Shortfall ($ 8,288,719)
Possible Resources/Approaches to
Mitigate Shortfall (Annualized)
• Revenue Sources
— Developer Impact Fees - $212,500
— Anticipated Grants - $110,000
• Deferrals
— Traffic and Transportation (50%) — ($738,682)
• Leaves annual expenditure of $738,682
— ADA Transition (67%) — ($1,658,564)
• Leaves annual expenditure of $816,790
Resources/Approaches to Mitigate Shortfall
(Annualized)
Annualized Shortfall
Revenues
Developer Impact Fees
Anticipated Grants
Deferral Savings
Traffic and Transportation
ADA Transition
$
$
$
$
(8,288,719)
212,000
110,000
738,682
1,658,564
Identified General Fund Need (5,569,473)
(Structural Deficit)
Issues Identified
• Several projects are a size that will necessitate
"saving" over multiple years to fund
— For example storm drains, public safety vehicles
— Bond financing is probably not an option at this
time
• Public safety vehicle cost estimates are very
"fluid" and delivery times are unpredictable
Conclusion
• Capital Improvement Forecast shows the need for a
General Fund contribution of $5M -$8M per year over
the long term
• Inability to generate such a General Fund contribution will ultimately result in being fiscally unsustainable
— Need to identify additional revenues and/or reductions in services and expenditures to fund contribution
• Some project areas can be deferred with minimal cost
impact