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<br />with the transfer of $5.5 million from the “Rainy Day Fund.” The “Rainy Day Fund” (CIP) was
<br />money that was removed from the capital program and set aside as additional reserves during
<br />the COVID pandemic. With another $2 million transfer from the “Rainy Day Fund” in the
<br />current fiscal year, the reserve fund is expected to be depleted. The City must identify other
<br />funding sources to fund its Capital Improvement Program.
<br />
<br />To further illustrate this point, a high-level infrastructure assessment was presented to the City
<br />Council in March 2023. The assessment indicates funding needs of approximately $900
<br />million over 10 years for the General Fund and Enterprise Funds to maintain City assets in a
<br />“state of good repair.” This shows the anticipated costs of just keeping what is in place in
<br />operating order – without adding new assets – including the City’s buildings, parks, roads,
<br />bridges, pipes, pumps, vehicles, etc. Growing costs to rebuild West Las Positas Drive and
<br />damage from the 2023 winter storms further increased the funding gap.
<br />
<br />To better understand and plan for infrastructure needs, the City proactively launched a deep-
<br />dive analysis into its infrastructure and capital/facilities in the form of a long-term Asset
<br />Management Plan. The development of this plan is underway and will help to fully understand
<br />the overall funding gap. It will also serve as the basis for developing a plan to identify and
<br />prioritize the necessary financial resources to repair and replace aging community assets in
<br />the long term. Inadequate fund balances exist in many important areas of the City’s operating
<br />budget.
<br />
<br />To help bring this need into perspective, here are a few examples of where things are today:
<br />• Parks – The City has 46 parks, with irrigation systems, paths, benches, lighting,
<br />playgrounds, etc.
<br />o The Park Renovation Fund currently has less than $600,000 in the fund balance,
<br />which is inadequate to fund all the needed improvements such as pathway
<br />replacement, irrigation systems, playgrounds, etc. [Note - the Lions Wayside and
<br />Delucchi Park renovation project is funded by development impact fees/park
<br />fees. These funds, by law, can only be used for the downtown park rennovation
<br />project.]
<br />
<br />• Buildings & Facilities – Similarly, the City has more than 100 buildings and facilities (fire
<br />stations, police facilities, library, pool, senior center, public restrooms in parks, Alviso
<br />Adobe, etc.) that must be properly maintained.
<br />o The Facilities Renovation Fund has approximately $2.5 million in the fund
<br />balance, which is wholly inadequate. There is insufficient funding to repair,
<br />replace, and maintain community assets such as the fire stations that don’t meet
<br />minimum standards, the dated and undersized police station, library, senior
<br />center, preschool, aquatic center, City administration buildings, and other
<br />facilities like park restrooms, Firehouse Arts Center, Alviso Adobe, etc.
<br />• Information Technology (IT) – The City is responsible for technology and equipment to
<br />run police dispatch services, payroll, human resources, budgeting and finance, and
<br />many other day-to-day operational needs, including cybersecurity protection.
<br />o At this time, the IT Replacement fund balance is approximately $1.2 million. This
<br />amount is much lower than the funding needed to update and replace systems
<br />such as police communications, financial, and recreation systems in the coming
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