Agenda Item Wording:
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Review Capital Improvement Programs - Continued review of the Fiscal Year 2026/27 and Fiscal Year 2027/28 Capital Improvement Program budgets and future capital projects for the General Fund.
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Agenda Date: 05/13/2026
Prepared by:
Nichol Ritchie, Finance Manager, Nichol.Ritchie@Visalia.gov, (559) 713-4379;
Renee Nagel, Finance and Technology Director, Renee.Nagel@Visalia.gov, (559) 713-4375.
Department Recommendation: It is recommended that the City Council receive the sixth (final) Capital Improvement Program (CIP) presentation and provide directions as appropriate. City Council is scheduled to act upon the CIP budget during the month of June in conjunction with the operating budget. No formal action is required or requested at this time.
Summary:
The Capital Improvement Program (CIP) represents a comprehensive six-year plan for capital projects and equipment. The first two fiscal years (FY 2026/27 and FY 2027/28) are proposed for appropriation, while the subsequent four years are included for long-range planning purposes to provide transparency regarding anticipated infrastructure, vehicles, and equipment needs, along with funding capacity and future project timing.
Only the first two years of the CIP will be appropriated in the proposed two-year budget and therefore warrant the greatest level of review.
This CIP includes proposed capital projects for the general government and public safety vehicles. The General Funds projects range from equipment, vehicle, and technology replacement to regulatory compliance needs.
Background Discussion:
Capital Review Process: This item represents Council’s final review of the City’s proposed Capital Improvement Plan for Fiscal Years 2026/27 and 2027/28. The CIP is being presented in a series of meetings from February through May 2026 to allow for detailed review and discussion of each funding category and proposed projects.
The two fiscal years (2026/27 and 2027/28) are proposed for adoption and appropriation. Four additional years are shown for planning purposes only to assist the City Council in evaluating long-term infrastructure needs, funding sustainability, and the potential impacts of future development and regulatory requirements. Amounts shown in the outer years are not appropriated within the two-year budget and are subject to change based on funding availability, grant awards, development activity, and updated master plans.
Staff have prepared a detailed presentation summarizing proposed capital projects within each fund category. The presentation is intended to highlight key projects, funding sources, and priorities, while providing sufficient detail to support Council discussion and direction. CIP project managers will be available during the presentation to provide technical information, respond to Council questions, and clarify project scope, funding sources, and implementation timelines.
Staff Recommendation Support:
To assist Council in its review, staff recommends the following:
• Staff will present a summary of proposed project appropriations by fund.
• It is recommended that Council review the proposed capital projects included within the identified funds and provide direction to staff by either tentatively concurring with the proposed appropriations or requesting revisions, prioritization adjustments, or additional information on specific projects.
• No formal action is required this evening. At Council’s direction, staff will incorporate any requested changes and will return with updated information, if needed.
• Upon completion of the review process, a finalized Capital Improvement Plan document will be prepared and included with the City’s Operating Budget for formal adoption in June 2026.
The Capital Improvement Plan includes capital projects and equipment purchases of $10,000 or more. Capital projects are budgeted separately from the operating budget using separate capital funds. This separation provides greater transparency into long-term infrastructure investments and ensures that one-time capital costs do not distort ongoing operating expenditure or service-level analysis.
Funds For Review
The General Fund is the final capital projects to be reviewed. The General Fund is a governmental fund with revenues that are largely discretionary and may be used for a wide range of municipal purposes. As a result, the General Fund consistently receives a significant number of capital project requests during each budget cycle. To ensure a structured and objective evaluation process, all project requests are reviewed by a General Fund CIP committee consisting of Department Heads (DH) or their designees. Projects are evaluated and ranked based on the following criteria:
• Implementation of a Council priority
• Support of City of Visalia General Plan
• Resolution of a health and safety concern
• Savings of City funds or avoidance of additional costs
• Promotion of efficient operations
The guidelines and scale for ranking are included in this item as Attachment C.
The General Fund Capital Summary in Attachment A includes 73 projects ($32.5 million). The committee ranked 42 of these projects ($7 million) which are proposed for funding in the 2-year portion of the budget. Table 1: Summary of General Fund Project Budgets by Category shows the total proposed appropriations for each category and the total appropriation proposed for the General Fund.
Table 1: Summary of General Fund Projects by Category
Detailed project descriptions are provided in the Capital Summary in Attachment A.
Capital Funds Reviewed:
This session concludes the capital review. All capital will be included with the operating budget which will be presented to Council in June for final adoption. A list of Council Sessions and funds reviewed is shown in Table 2: Capital Funds Reviewed at Prior Council Sessions.
Table 2: Capital Funds Reviewed at Prior Council Sessions
Fiscal Impact including annual maintenance and operating costs:
The Capital Improvement Plan is presented as a six-year planning document, with FY 2026/27 and FY 2027/28 proposed for adoption and appropriation, and the remaining four years are provided for long-term planning purposes and do not constitute an authorization to spend. The attached financial schedules (Attachment A) provide a comprehensive financial summary of each fund, including beginning cash balances, projected revenues, operating expenditures, proposed capital expenditures, and estimated ending fund balances over the six-year planning forecast. These projections are based on current revenue trends, adopted fee structures, development activity assumptions, grant funding availability, and known capital project commitments.
The CIP is developed to ensure that planned capital investments are aligned with available funding sources and that each fund remains financially sustainable over the planning period. Where applicable, projects are supported by restricted revenues, internal service fund charges, or external funding sources to minimize impacts to the General Fund. No appropriation or budget action will result from this review item. The final CIP will be presented for adoption and appropriation with the City’s Operating Budget in June 2026.
Prior Council Action: Click or tap here to enter text.
Alternatives: None
Recommended Motion (and Alternative Motions if expected):
recommendation
No motion is requested or required at this time.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 05/13/2026
Attachments:
Attachment A - Summary of proposed General Fund Capital Projects
Attachment B - Directory of Map Points and Maps
Attachment C - General Fund Capital Project Ranking Guidelines
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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