11 ATTACHMENT 1, EXHIBIT B - Laserfiche WebLink

5 City of Pleasanton Capital Improvement Program • FY 2023/24 - FY 2026/27 Honorable Mayor and City Councilmembers, In accordance with the City’s ordinance, I am pleased to present the FY 2023/24 and FY 2024/25 Proposed Capital Budget and the four-year Capital Improvement Program (CIP) from FY 2023/24 to FY 2026/27. As the City and the community continue to move past the COVID-19 pandemic and transition into an endemic state, the Proposed Capital Budget and CIP presented in this publication are the result of careful evaluation, assessment, and prioritization of the City’s near- and long- term capital needs based on the recently completed ten-year infrastructure plan, as well as input received from the City Council during the development process to ensure the Proposed Capital Budget and CIP address council priorities. Consistent with the City’s two-year budget policy, it is recommended that the Proposed Capital Budget, which represents first two years of the CIP be adopted and that funds be appropriated. The projects included in the final two years of the CIP represent those that are 1) identified as priority but not as critical compared to the ones included in the first two years, 2) moved out due to staffing re- sources, or 3) delayed because of limited funding in the first two years. Proposed projects in the CIP are based on currently identified needs and are subject to revision, as necessary, to accommodate changes in priorities and/or expected funding levels. The FY 2023/24 and FY 2024/25 Proposed Capital Budget is $46.4 million. Over a four-year period, the FY 2023/24 – FY 2026/27 Proposed CIP totals $78.7 million. The total fiscal resource available for the CIP incorporates estimates for future revenue collection that are subject to economic and political elements outside of the City’s control. As such, the City’s ability to fund projects included in this program could change if the City does not receive some of the anticipated revenues. While some of the capital program revenues, such as the state gas tax and related transportation revenues, have remained mostly stable, a number of other revenue sources have been revised lower in the Proposed Capital Budget and CIP. For example, one of the core funding sources for the City’s capital program, development related fees, has been impacted in recent years due to delays associated with proposed commercial and residential developments. As a result, several projects budgeted from this funding source have been postponed. Additionally, due to funding challenges in the Water Utility program, its contribution towards the corresponding capital program was reduced significantly for the next two years. Staff is currently engaged in a water rate study that, once concluded, will provide a roadmap towards a full cost recovery for both the operating and capital programs. As part of the ongoing budget-monitoring process, staff will periodically conduct a review of the Capital Budget and CIP. If these reviews determine that adjustments are needed, staff will provide the City Council with any recommended changes to projects and corresponding revenues for FY 2024/25 as part of the Mid-Term Budget process or through a standalone City Council agenda report.