Agenda Item Wording:
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Review Capital Improvement Programs - Continue review of select fiscal year 2026/27 and 2027/28 Capital Improvement Program Budgets and future capital projects. Funds to be reviewed are Corporation Yard Impact Fee, Library Impact Fee, Fire Impact Fee, Police Impact Fee, Police Measure T, Police Unclaimed Funds, Narcotics Forfeiture, Baseball and the Convention Center funds.
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Agenda Date: 04/20/2026
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 this fourth Capital Improvement Program (CIP) presentation, provide directions as appropriate, and continue the review of the proposed CIP budget for inclusion in FY 2026/27 and FY 2027/28 budget. No formal action is required this evening.
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 needs, 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 that replace general government and public safety vehicles, equipment, technology, and Internal Services Funds capital projects. In addition, this review will revisit the Building Safety Fund which was reviewed in February.
Background Discussion:
Capital Review Process:
This item represents Council’s continued 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 April 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 return with updated information, if needed, at subsequent CIP review meetings.
• 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 nine Funds included in this review represent key investments in public safety, community facilities, and economic development. The following sections provide additional detail on each fund, including current financial conditions, proposed projects, and alignment with the City’s capital planning priorities. The funds included in today's meeting are listed in Table 1: Capital Budget Funds for Review April 20, 2026. The table outlines each fund and the total recommended capital appropriation for each budget year.
Table 1: Capital Budget Funds for Review - April 20, 2026
Corporation Yard Impact Fee - Fund 103: The Corporation Yard Impact Fee is collected at the time of building permit issuance and is restricted to funding capital facilities and equipment necessary to support growth-related demands on City services. These funds may only be used for new or expanded infrastructure and cannot be used for operations or maintenance. The fund does not include project appropriations within the current two-year budget period; however, funding is planned in the out-years to support the development of the Corporation Yard Site and the design and construction of the Public Works Administration Building. These planned investments are intended to address long-term operational needs associated with growth and ensure adequate facilities to support City services.
Library Impact Fee - Fund 104: The Library Impact Fee is collected at the time of building permit issuance and is restricted to funding capital facilities and equipment needed to support growth-related library services. These funds may only be used for new or expanded infrastructure and cannot be used for operations or maintenance. The fund does not include project appropriations within the current two-year budget period but includes funding in the out-years for the expansion and development of library facilities. This project will evaluate future space, service, and infrastructure needs to accommodate population growth and enhance service delivery. The planning effort will support the development of a defined project scope and funding strategy in coordination with regional partners.
Fire Impact Fee - Fund 106: The Fire Impact Fee is collected at the time of building permit issuance and is restricted to funding capital facilities, infrastructure, and equipment necessary to maintain appropriate fire serve levels in response to new development. These funds are limited to growth-related improvements and cannot be used for operations or maintenance.
This fund has a loan from the General Fund for its contribution towards the new Public Safety building. The Fire Impact Fee contributed $5.9 million to the project that is currently under construction and is expected to pay this back over the next 10 years.
This fund has two projects requested within the two-year appropriation period mentioned below:
• Public Safety Impact Fee Nexus Study ($150K): The nexus study, conducted in coordination with the Police Impact Fee Fund, will evaluate projected service demands, and establish the proportional cost of facilities, equipment, and infrastructure required to maintain service levels. Completion of this study ensures compliance with State requirements and supports a legally defensible and sustainable impact fee structure. This is a multi-funded project with a total cost of $300K. $150K from Police Impact Fee (105) and $150K from Fire Impact Fee (106).
• Public Safety Traffic Signal Pre-Emption Systems ($100K): The continued implementation of the Public Safety Traffic Signal Pre-Emption System is to improve emergency response times and reduce delays at signalized intersections, and completion of a comprehensive Public Safety Impact Fee Nexus Study.
Police Impact Fee - Fund 105: The Police Impact Fee is collected at the time of building permit issuance and is restricted to funding capital facilities, infrastructure, and equipment necessary to maintain police service levels.
This fund has a loan from the General Fund for its contribution towards the new Public Safety building. The Police Impact Fee contributed $3.4 million to the project that is currently under construction and is expected to pay this back over the next 6 years.
These funds cannot be used for ongoing operations or maintenance. This fund has two projects requested within the two-year appropriation period mentioned below:
• Public Safety Impact Fee Nexus Study ($150K): The nexus study, conducted in coordination with the Police Impact Fee Fund, will evaluate projected service demands, and establish the proportional cost of facilities, equipment, and infrastructure required to maintain service levels. Completion of this study ensures compliance with State requirements and supports a legally defensible and sustainable impact fee structure. This is a multi-funded project with a total cost of $300K. $150K from Police Impact Fee (105) and $150K from Fire Impact Fee (106).
• Police Workforce Study ($100K): This project will retain a qualified professional consultant to conduct a comprehensive Work Force Study for the Police Department. The study will include a detailed analysis of statistical data, current staffing levels, shift structures, caseloads, response times, and service demands. Work force studies are a recommended best practice by the International Association of Chiefs of Police (IACP) and the International City/County Management Association (ICMA) to objectively determine appropriate staffing levels and deployment models for patrol, dispatch and investigative assignments. The results will support data-driven decisions to align staffing resources and deployment models with current and projected service levels, operational demands, and community expectations.
Measure T Police Fund - 121: Measure T provides a dedicated 1/4 cent sales tax to support public safety. The sales tax revenue collected is split 60% Police and 40% Fire. This fund is the Police portion of the sales tax and can only be used for police operations and capital. This fund has one proposed capital request which includes the acquisition of one police vehicle, as detailed below:
• Fully Equipped Marked Patrol Unit - Vehicle #212623 ($77K): This vehicle is 7 years old and was involved in an accident in August 2024. Fleet Maintenance is recommending the vehicle be replaced due to the costs to repair the vehicle exceeding the value of the vehicle. The total estimated replacement cost is $108,000, of which $31,000 has already been accumulated for replacement in Measure T Police Vehicle Replacement Fund (5030 and was brought to council on March 16, 2026. The remaining $77,000 is being requested to replace this vehicle. Timely replacement of this unit is necessary to maintain operational reliability and officer safety.
Police Unclaimed Funds - Fund 012: This governmental fund accounts for unclaimed monies received by the Police Department, including property and evidence-related funds, in accordance with California Government Code section 50050. These funds are held for a statutory period to allow rightful owners to claim them. If unclaimed after the required holding period and public notice requirements have been satisfied, they are deemed abandoned and may be transferred for City use. Due to the one-time and non-recurring nature of these revenues, expenditures are limited to one-time public safety needs, such as capital equipment, rather than ongoing operational costs. For FY 2026/27, funding in the amount of $25,500 is proposed for the replacement of the SWAT Communication System. This project includes the purchase of upgraded in-ear communication headsets equipped with active noise reduction and noise cancellation capabilities, as well as shooter-specific boom microphones. These enhancements will provide clear, reliable communication in high-noise tactical environments and improve coordination, situational awareness, and overall officer safety.
Narcotics Forfeiture - Fund 621: This special revenue fund accounts for asset forfeiture revenues received through narcotics-related enforcement activities. These funds are restricted for law enforcement purposes in accordance with applicable state and federal guidelines and cannot be used for ongoing operational expenditures that would otherwise be funded by the General Fund. Due to the one-time and non-recurring nature of these revenues, expenditures are limited to one-time public safety needs, such as capital equipment and specialized tools that support law enforcement operations. For FY 2026/27, funding is proposed for the purchase of night vision equipment for the SWAT team. This project includes the acquisition of 21-night vision devices to enhance operational capability in low-light environments. The equipment will allow officers to operate with improved visibility while maintaining concealment, enhancing coordination and situational awareness, and reducing risk to personnel during high-risk operations.
Baseball - Fund 157: This fund accounts for the revenues and expenditures associated with the City’s agreement with Around the Herd for the lease and operation of Valley Strong Baseball Stadium. Under the original agreement, the General Fund contributed an annual allocation of $200,000 for fan-experience enhancements. Following the settlement agreement executed in August 2024, multiple capital improvements were completed to comply with updated MLB ballpark standards. As part of that agreement, the Fan Improvement Allocation, which reflects the annual $200,000 allocation through the end of the current contract term in December 2029 plus accumulated prior-year residuals totaling $1.55 million was used to fund the recently completed $7.6 million in capital improvement projects. In addition, the City is responsible for all major maintenance to the facility. This is funded separately through a subsidy from the General Fund. The projects listed below are for major maintenance to the facility:
• Rawhide Stadium Retaining Wall Repair ($300K): This project includes the repair of two reinforced concrete retaining walls at Valley Strong Stadium that are exhibiting hairline cracking and visible curvature, indicating early signs of structural deterioration. While the walls do not currently pose an immediate safety risk, proactive repairs are being recommended to stabilize the structures, prevent further deterioration, and avoid higher future repair or replacement costs. This project supports the City’s ongoing commitment to maintaining safe and functional public facilities and aligns with the capital improvement obligations outlined in the stadium lease agreement. Staff are currently advancing design and evaluation efforts to determine the appropriate repair solution for the two retaining walls. Construction costs are currently estimated at $300k, with additional funding requested to complete the construction phase. Project total of $430k, includes prior year funding of $130k.
• Rawhide Stadium Accessible Walkway Improvements ($140K): Design and construct an accessible walkway at Valley Strong Ballpark to improve connectivity between the older northwestern seating area and the newer southwestern section. The current route requires a combination of ramps, stairs, and an accessible lift, creating barriers for individuals with mobility limitations. This project will provide a continuous accessible path, eliminating reliance on the lift and improving overall accessibility and circulation within the facility. Project total of $515K, includes $140K in FY 2027/28 and the balance of $375K in FY 2028/29.
Convention Center - Fund 413: This fund revenues are derived from facility fees collected from conventions, conferences, and events held at the Visalia Convention Center. These revenues are used to fund operations and capital. In addition, this fund receives an annual subsidy from the General Fund.
Staff is recommending 15 projects in the two-year budget that address aging infrastructure, improves functionality, and ensures the Convention Center remains a viable and attractive venue for regional events. Below are two of the larger projects recommended in the two-year budget:
• Convention Center Master Plan and Feasibility Study ($250K): This project includes the development of a comprehensive master plan and feasibility study for the Visalia Convention Center. The study will evaluate existing facility conditions, space utilization, and future expansion opportunities, including the potential for a hotel within the convention center block. The effort will provide conceptual design options, cost estimates, and long-term planning recommendations to guide future capital investments. This project is critical to ensuring the facility remains competitive and responsive to evolving market demands for conferences, conventions, and large-scale events.
• Convention Center Wi-Fi System Replacement ($200K): This project replaces the existing Wi-Fi system and supporting network infrastructure, originally installed in 2015, which is approaching the end of its useful life and no longer meets the operational demands on modern events. The upgraded system will improve connectivity, reliability, and overall performance, supporting current technological needs for conferences, conventions, and large gatherings. Reliable, high-capacity wireless service is a critical component of facility operations and user satisfaction, and this upgrade ensures the Convention Center remains competitive with comparable venues.
Each Funds proposed projects is listed in detail in Attachment A.
Next Capital Funds to be Reviewed:
As previously mentioned, Capital Funds will be presented to Council during the months of February through May. This allows Council to conduct their review of the proposed CIP budget in manageable groupings. Funds listed at prior Council meetings are listed in Table 2: Capital Funds Reviewed. The table shows the date the funds were reviewed by Council.
Table 2: Capital Funds Reviewed at Prior Council Sessions
The proposed presentation schedule is listed below in Table 3: Capital Funds to be reviewed by Council in future Council Sessions.
Table 3: Capital Funds to be Reviewed by Council in Future 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: None
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: 04/20/2026
Attachments:
Attachment A - Summary of proposed Capital Projects by Fund
Attachment B - Directory of Map Points and Maps
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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