To: Honorable Mayor and Members of City Council
From: Julie Lucido, Public Works Director
Prepared By: Ian Heid, Senior Civil Engineer
TITLE:
Title
Capital Improvement Program; FY26 & FY27 Budgets
LABEL
RECOMMENDED ACTION:
Recommendation
Provide direction regarding proposed Capital Improvement Program for the FY26 and FY27 budgets.
Body
DISCUSSION:
In preparation for the adoption of the City of Napa budget, the City holds two workshops. On January 30, 2025, the first workshop was held and City Council set focus areas through the upcoming fiscal years FY26 & FY27. The top six focus areas include climate action, roads and traffic safety, economic resilience, parks and community spaces, community engagement, and housing. The workshop for today’s agenda is a presentation and discussion regarding the Capital Improvement Program (CIP) budgets as described below and annual operating budgets.
The City adopts a 5-year CIP to plan and program resources necessary for the acquisition, design, and/or construction of significant City projects. The CIP projects repair or develop community infrastructure to meet community needs, provide facilities to support City operations, and support City Council focus areas/priorities.
A capital project is considered a one-time expenditure but often the projects take multiple years to deliver and fully fund. While CIP plans are developed for at least a 5-year horizon, budget appropriations for FY26 & FY27 will be recommended as part of the budget adoption (the remaining three years are presented for planning purposes). In addition to the projects listed in the attachments for upcoming funding, staff is working to deliver projects from previous budget approvals such as paving and sidewalk work along Browns Valley, Coombs Street and Lincoln Avenue and the new restroom at Alston Park.
The CIP will support multiple aspects of the overall City Council priorities, specifically achieving numerous traffic safety and infrastructure improvements. Infrastructure is the basic public facilities of the built environment that support the community, health and safety, quality of life, and the economy. This plan includes investments for our parks and trails, streets, sidewalks, bicycle facilities, traffic safety and traffic control, storm drainage system, water treatment and distribution systems, and City-owned buildings.
In November 2024 the Napa voters passed Measure G to increase the citywide sales tax by 1% to increase funding for repairing potholes/streets; maintaining parks, recreation, senior/youth programs; protecting water quality; supporting police with mental health response team for nonviolent calls; upgrading fire stations with lifesaving equipment; homeless encampment cleanups; constructing essential facilities; enhancing fire protection; and general government use. With increased funding levels both the CIP and operating budgets include new projects and increased services to deliver on these important community priorities.
For this 2-year budget cycle, $23,750,000 is recommended to be added to the CIP from Measure G revenues. $12,450,000 is proposed in FY26 and $11,300,000 is proposed in FY27. This funding will deliver new paving projects, new park improvement projects, and repairs to existing fire stations. In the last quarter of FY25, $5,000,000 was added to projects for paving and park improvements.
The presentation will focus on projects proposed for funding in FY26 and FY27.
FINANCIAL IMPACTS:
Measure G: The proposed Capital Improvement Program for the FY26 and FY27 budgets includes $23,750,000 from Measure G. In FY26, $12,450,000 is proposed for 8 projects. In FY27, $11,300,000 is proposed for 9 projects.
The proposed Capital Improvement Program for the FY26 budget contains 60 projects, is funded by multiple funding sources intended for Capital projects, and totals $29,622,927 (excluding Measure G).
The proposed Capital Improvement Program for the FY27 budget contains 32 projects, is funded by multiple funding sources intended for Capital projects, and totals $16,800,000 (excluding Measure G).
The 5-Year Capital Improvement Program plan for FY FY26 through FY30is funded by multiple funding sources intended for Capital projects and totals $162,338,927 (excluding Measure G).
CEQA:
The Public Works Director has determined that the Recommended Action described in this Agenda Report is not in-and-of-itself a “project” (pursuant to CEQA Guidelines Section 15378) since it does not result in a physical change in the environment.
However, the Recommended Action is a part of a larger “project” that will be subject to environmental review in accordance with CEQA at the “earliest feasible time” prior to “approval” consistent with CEQA Guidelines Sections 15004 and 15352. The larger “project” is future Capital Improvement Projects, and staff plans to bring back a CEQA analysis of each project to Council prior to approval of each project.
DOCUMENTS ATTACHED:
ATCH 1 - Measure G Projects FY26 & FY27
ATCH 2 - FY26-30 Projects by Category
ATCH 3 - FY26-30 Projects by Funding Source
ATCH 4 - Project Status Summary
ATCH 5 - Project Descriptions
NOTIFICATION:
None.