Title
2026-2031 Capital Improvement Program
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FileID
File ID: 2026-00778
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Location
Location: Citywide
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Recommendation
Recommendation: Review, comment, and provide direction for final budget adoption.
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Contact
Contact: Peter Coletto, Director, (916) 808-5416, pcoletto@cityofsacramento.org; Carol Renix, Senior Budget Analyst, (916) 808-5079, crenix@cityofsacramento.org; Department of Finance
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Presenter
Presenter: Carol Renix, Senior Budget Analyst, (916) 808-5079, crenix@cityofsacramento.org, Department of Finance
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Attachments
Attachments:
1-Description/Analysis
2-2026-2031 Proposed CIP
3-2026-2031 CIP Presentation
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Description/Analysis
IssueDetail
Issue Detail: The Proposed 2026-2031 Capital Improvement Program (CIP) is the City’s five-year financial and strategic plan for infrastructure, deferred maintenance and facility needs. In accordance with best practice, beginning with this proposal, the CIP will identify all capital needs, including projects that do not currently have identified funding or are not yet fully funded. The addition of unfunded capital needs gives Council a clearer picture of the status of the City’s infrastructure and fiscal health, allows Council to more holistically prioritize infrastructure investments, and aids in the development of a comprehensive capital financing plan.
The CIP totals $2.5 billion in capital needs with $0.5 billion in identified funding leaving an unfunded balance of $2.0 billion. Funded projects in the CIP total $512.6 million, including $77.4 million in General Funds. The fiscal year (FY) 2026/27 CIP budget totals $129.8 million, including $14.2 million in General Funds. The CIP is available for review here: 2026-2031 Proposed CIP (https://www.cityofsacramento.gov/content/dam/portal/finance/Budget/26-27-proposed/2026_2031_Proposed_CIP_20260427.pdf).
The CIP was developed in coordination with all City departments responsible for capital projects within the context of Council adopted policies and planning documents.
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PolicyConsiderations
Policy Considerations: The CIP has been reviewed for consistency with Council’s adopted policies and plans, which include the 2040 General Plan, the Parks Plan 2040, the Park Project Programming Guide, transportation plans (Vision Zero Action Plan, Transportation Priorities Plan, Intelligent Transportation Systems Plan, Streets for People: Sacramento Active Transportation Plan, and Sacramento Neighborhood Connections Plan), utility master plans, and deferred maintenance assessments (aquatics, facilities, and park maintenance).
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EconomicImpacts
Economic Impacts: This report concerns administrative activities. Individual projects that require contracts will address economic benefits of the project at the time they are brought to Council.
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EnvironmentalConsiderations
Environmental Considerations: This report concerns administrative activities and government fiscal activities that do not constitute a “project” as defined by the California Environmental Quality Act (CEQA) Guidelines Sections 15378(b)(2) and 15378(b)(4) and are not subject to the provisions of CEQA (CEQA Guidelines 15060(c)(3)). CEQA review for any project, which utilizes funds allocated under the 2026-2031 CIP budget, has been or will be performed in conjunction with planning, design, and approval of each specific project as appropriate.
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action:
Planning and Design Commission: Sacramento City Code Section 17.912.010 requires the Planning and Design Commission to review the City’s five-year CIP for consistency with the City’s General Plan and to report its findings to the City Council. The 2026-2031 Proposed CIP was presented to the Commission on April 23, 2026. The General Plan Consistency Memo will be included in the Adopted Budget staff report.
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RationaleforRecommendation
Rationale for Recommendation: The CIP is consistent with and supports the goals of budget sustainability and fiscal responsibility. Capital projects included procurement, construction, or installation of facilities and equipment that will have a useful life of at least five years and a cost in excess of $20,000.
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FinancialConsiderations
Financial Considerations: In an effort to address critical facility needs, equipment and infrastructure, the FY2026/27 capital budget includes the following new and/or significant investments:
• City Facility Reinvestment Program (C13900000): Provide facility improvements including roof replacements, fire alarm upgrades, Heating Ventilation and Air Conditioning (HVAC) replacements at various City facilities ($2.4 million).
• Advanced Life Support Equipment Program (F12000200): Purchase medical equipment such as ambulances, defibrillators, and gurneys for use in advanced life support (ALS) services ($1.6 million).
• Performing Arts Center Improvements Program (M17101800): Provide improvements, repairs and/or replacements for the SAFE Credit Union Performing Arts Center to provide a well maintained, competitive and cost-effective venue. ($775,000)
• North Natomas Community Park All Weather Field (L19140800): Convert the existing grass field to an all-weather field, allowing for year-round play. ($1.5 million)
• Safety Pilot Project Program (T15255300): Identify and implement potential faster options as interim solutions, such as modifying roadway striping, installation of green bike lanes, pavement repair, and installation of barrier elements to address safety issues on high injury corridors while the ultimate corridor-wide solutions are developed, funded and implemented. ($2.0 million)
• Reservoir Rehabilitation Program (Z14130500): Improve the water system reliability and extend useful lives of the City’s reservoirs. ($4.7 million)
Also highlighted in the CIP are $2.0 billion in unfunded deferred maintenance and capital needs. While the capital funding gap identified in the CIP is significant, the City is not alone in this regard, as many other jurisdictions are facing similar challenges with aging infrastructure, rising costs, and a lack of dedicated funding to address capital and deferred maintenance needs. In this context the CIP will be used as a baseline planning tool along with other financial best practices to address the challenges presented by our capital funding gap.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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