Brief

The City Administrative Officer submitted a funding proposal to allocate unappropriated balance reserves—surplus money from the current fiscal year—toward deferred maintenance and capital repair projects citywide. The Budget and Finance Committee reviewed the proposal on August 18, 2026, and approved it with amendments. The file remains open pending any further council action or implementation.

Full summary

City Administrative Officer Matthew W. Szabo recommended transferring $11 million from the 2026-27 Unappropriated Balance to fund a prioritized list of deferred maintenance and capital repair projects across the city. The $11 million was set aside by the Council during the budget process — added to the Unappropriated Balance rather than directly appropriated — to give the Council time to determine which projects should receive funding. The CAO's report provides that prioritization framework and the specific project list. The CAO split the funding roughly evenly between two categories. For Municipal Facilities — city-owned buildings and infrastructure — the largest allocations go to citywide maintenance and repairs ($1.7 million), emergency weather repairs ($1.6 million), and overhead doors, automatic gates, and awnings at fire and police stations ($900,000). Smaller amounts cover flooring repairs to reduce trip-and-fall liability, plumbing and drainage work, hydration station filter replacements, underground fuel storage tank repairs, and a facilities condition assessment program. For Physical Plant — the public right of way — the biggest items are a Magnolia Boulevard pedestrian safety project in Council District 2 ($1.425 million), El Nino emergency response reserves ($1 million), bridge preventive maintenance citywide ($860,000), a flooding and subsidence repair project at Thurston and Homedale Avenues in Council District 5 ($857,000), erosion control for hillside damage ($600,000), a Berenice Place roadway reconstruction in Council District 1 ($257,000), and a $500,000 contingency reserve. The CAO explicitly tied several physical plant priorities to the threat of a major 2026 El Nino event, citing NOAA projections of an 81 percent chance it would rank among the largest on record. The report notes one unresolved complication: during earlier budget deliberations, Councilmember Padilla introduced a separate motion to dedicate $733,000 of this same pool for projects in Council District 6, and that motion remains pending in the Budget and Finance Committee. The CAO's recommended project list does not set aside funds for District 6, arguing that the proposed allocations will benefit projects citywide and address the most critical needs. The Budget and Finance Committee approved the CAO's recommendations as amended on August 18, 2026. The file remains open, with the amended package awaiting full Council adoption and mayoral approval before funds can be transferred and projects can proceed.

Activity (4)

• 2026-08-18 Budget and Finance Committee approved as amended .
• 2026-08-14 Budget and Finance Committee scheduled item for committee meeting on August 18, 2026.
• 2026-08-13 City Administrative Officer document(s) referred to Budget and Finance Committee.
• 2026-08-13 Document submitted by City Administrative Officer, dated August 13, 2026.

Documents (1)

• 2026-08-13 Report from City Administrative Officer · report