Title
Make a Determination that the Proposed Fiscal Year 2023-24 and 2024-2025 Capital Budget is Consistent with the General Plan. CEQA Determination: Not a Project.
Body
To: Members of the Planning Board
BACKGROUND
On June 20, 2023, staff will request the City Council approve a capital budget for fiscal year (FY) 2023-2024 and 2024-2025. California law requires that before the City Council approves the capital budget, the Planning Board needs to determine its consistency with the General Plan. Exhibit 1 contains the draft project sheets with information on the proposed projects included in the capital budget for FY 2023-24 and 2024-25. Capital investments are shown by project type and fund source for each year. The proposed CIP totals approximately $72.5 million and $32.3 million for FY 2023-24 and 2024-25, respectively. In preparing the proposed CIP, staff consider capital investment needs, fund balances, City Council priorities, City policies and staffing resources to manage and execute projects. Exhibit 2 shows the General Plan conformance for each project. Staff seek a determination from the Planning Board that the Capital Budget is consistent with the General Plan prior to City Council consideration and adoption in June.
BACKGROUND
As part of the City of Alameda (City) biannual budget process, a capital budget for Fiscal Years (FY) 2023-2024 & 2024-2025 is developed to fund infrastructure improvements in the City. Capital improvements generally are categorized as follows:
• Pavement, Signals and Lighting
• Sanitary Sewer
• Stormwater, Lagoons and Shoreline
• Buildings and Facilities
• Parks
• Transportation System Enhancements
• Sea Level Rise and Climate Adaptation
Each of the categories have multiple projects and funding sources. City staff propose funding for capital improvement projects within each category. The City Council ultimately allocates funds for the projects through adoption of the biannual budget in June for the fiscal year that begins on July 1, 2023.
Capital Budget Process
The main components for the basis of the capital budget are:
1. Fund balances and expected revenues
2. Estimated operational expenses from each fund
3. Proposed projects by City departments with estimated costs
The first step in developing a capital budget is to determine available funds. Finance Department staff produce fund balance statements including revenue and expense projections for each fund. The CIP is largely funded with revenues from restricted funds. For example, the Sewer Fund is restricted to maintenance and replacement of City sewers. Transportation funds include Measure BB (Alameda County Transportation Sales Tax), Gas Tax, the State Road Maintenance and Rehabilitation Program (SB1) and Vehicle Registration Fees. Transportation projects also are supplemented by the Development Impact Fee funds, which are paid for by new residential and commercial development, and project-specific grants. The Urban Runoff and Water Quality and Flood Protection fees are for the maintenance and enhancement of the City’s stormwater infrastructure and various efforts to make stormwater pollution-free before it enters the Bay. The Alameda Point Fund reinvests revenue from leases and building sales to operate existing and construct new infrastructure at Alameda Point. The General Fund is one of the only funding sources that is not restricted and can support any public infrastructure expense.
Operational expenses are proposed by each department and evaluated by the Finance Department. Several funds are shared between operating divisions and capital projects. For example, operating expenses include the cost of maintaining existing traffic signals, while the capital budget funds the purchase and installation of new traffic signal equipment. Operating and capital expenses are balanced throughout the budget process.
Once fund balances are confirmed, Public Works staff consult with City departments, review master plans and other policy documents, and perform necessary condition assessment to understand capital needs. The capital needs are then used to identify projects and costs. The proposed expenditures for each project are allocated within each funding source so that funds are budgeted to retain a positive fund balance. In addition, City Council priorities and the availability of staffing resources to manage and execute projects are major considerations in developing the capital budget. The draft capital budget is refined though budget meetings with the City Manager, Finance and other City departments.
On March 22, 2023 staff presented the transportation projects proposed for the two-year capital budget to the Transportation Commission. Transportation projects represent a large portion of the capital budget and major projects typically require a long timeframe to plan, fund, design and construct. The transportation projects in the capital budget build from ongoing commitments for maintaining existing infrastructure and enhancing transportation infrastructure. The projects are drawn from and consistent with adopted plans including the General Plan Mobility Element (2021), Active Transportation Plan (2022), Vision Zero Action Plan (2021), and Transportation Choices Plan (2018).
On May 2 and May 11, staff will present the capital budget at budget workshops that provide the City Council and the community an opportunity to discuss the capital budget and consider proposals for capital improvements and priorities. City staff will develop a capital budget book that provides additional information and context for the proposed projects and funding. The final two-year capital budget is expected to be adopted by City Council in June.
In addition, before the City Council approves the capital budget, the Planning Board must determine its consistency with the General Plan. Staff seek a determination from the Planning Board that the Capital Budget is consistent with the General Plan.
DISCUSSION
Exhibit 1 contains the draft project sheets with information on the proposed projects included in the capital budget for FY 2023-24 and 2024-25. Capital investments are shown by project type and fund source for each year. The proposed CIP totals approximately $72.5 million and $32.3 million for FY 2023-24 and 2024-25, respectively.
Exhibit 2 shows the General Plan conformance for each project. The Capital Budget is consistent with Alameda’s General Plan and various plans already approved by the City Council including the Active Transportation Plan (2022), Vision Zero Action Plan (2021), the Climate Action and Resiliency Plan (2019), and the Transportation Choices Plan (2018). Adopted in 2021, the General Plan broadly directs Alameda’s existing structures and public infrastructure be improved, enhanced, and maintained. The General Plan lays out specific goals, policies and actions related to Land Use and City Design, Conservation and Climate Action, Mobility, Open Space and Parks, and Health and Safety.
As noted in Exhibit 2, the Capital Budget includes projects that address the goals and policies included in the General Plan. For example:
• projects at Alameda Point support the Land Use and City Design goals;
• investments in sanitary sewer and stromwater pipes and pump stations support Conservation and Climate Action goals;
• transportation projects support the Mobility Element goals of Equity, Safety, Choices and Sustainability;
• parks projects support Open Space and Parks goals; and
• investments in street lighting and building security support Health and Safety goals.
The goals and policies are mutually supportive, and several projects are specifically identified in the General Plan. Furthermore, the Capital Budget also is consistent with the four broad themes in the City’s General Plan which are equity, access, environment, and character. The Capital Budget promotes a heathy, equitable and inclusive city while enhancing mobility, protecting the environment, responding to the climate crisis, and preserving Alameda’s distinctive character.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378, and because it involves governmental fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment; therefore, no further CEQA analysis is required.
RECOMMENDATION
Make a determination that the proposed Fiscal Year 2023-24 and 2024-2025 Capital Budget is consistent with the General Plan.
Respectfully submitted,
Robert Vance, Deputy Public Works Director
Exhibits:
1. 2023-2025 Capital Budget Project Descriptions
2. 2023-2025 Capital Budget Consistency with the General Plan