For City Council Meeting May 27, 2025
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: Tim Sullivan, Assistant City Manager
Title
Request the City Council Approve the Fiscal Year 2026-2030 Five-Year Capital Improvement Plan.
(ACTION)
(POWERPOINT)
Body
RECOMMENDATION:
Staff recommends that the City Council approve the Fiscal Year 2026-2030 Five-Year Capital Improvement Plan.
BACKGROUND:
The City of Rialto Fiscal Year (FY) 2026-2030 Five-Year Capital Improvement Plan (CI Plan) is a long-range fiscal planning guide and serves as the framework for the development of future fiscal year budgets. The purpose of the report is to provide an outlook of the City's capital needs and finances over the next five years as forecasted. The CI Plan establishes a road map for prioritizing, coordinating, and scheduling the capital improvement planning, design, and construction of the City’s Public Works infrastructure that is vital for basic public service.
Capital improvements are the addition of permanent structures, structural changes, or restoration of the City’s assets that enhance the assets’ overall value, prolong their useful life, or adapt them to new uses. The City’s assets include streets and related right-of-way features; stormwater and drainage systems; water and sewer systems; information technology infrastructure; public facilities, such as parks and recreation, and community centers; and public safety buildings, such as police and fire stations.
Staff developed the CI Plan through a collaborative process based on the City’s guiding principles as described in the Rialto General Plan, with input from the City Council and City departments. The CI Plan consists of projects that upgrade, repair, and/or replace existing infrastructure. The City’s infrastructure needs have historically exceeded funding availability.
The CI Plan, like the budget, is a dynamic document that is subject to modification at any time to meet the changing priorities of the City Council and community. Projects identified within the CI Plan are reviewed and adjusted annually to ensure consistency with Council priorities, strategic initiatives, and funding availability.
ANALYSIS/DISCUSSION:
The FY 2026-2030 CI Plan includes programmed allocations totaling approximately $299.2 million over the five-year period. The plan funds 61 projects, providing full funding to construct 52 projects, complete five (5) studies, and initiate the planning and design phases for the remainder of the projects. The programmed projects are categorized as follows:
• Transportation: 15 projects totaling approximately $132.7 million
• Drainage: Four (4) projects totaling approximately $29.4 million
• Parks: Four (4) projects totaling approximately $12.9 million
• Fire: 14 projects totaling approximately $29.6 million
• Police: Six (6) projects totaling approximately $3.6 million
• General Facilities: Six (6) projects totaling approximately $9.4 million
• Information Technology: Three (3) projects totaling approximately $3.2 million
• Utilities: Nine (9) projects totaling approximately $78.2 million
This comprehensive approach reflects the City’s commitment to investing in critical infrastructure and community facilities, thereby enhancing the quality of life and supporting long-term growth.
The CI Plan was developed based on the information available and known at the time of its preparation; however, risks to the projections include events that may occur during the plan period whose outcomes are unpredictable or cannot be reasonably quantified at this time.
The CI Plan is a planning tool to assist in budget decisions related to the allocation of available funding resources and should not be considered a budget. The City Council must approve all proposed projects and financial appropriations included herein under separate action.
Revenue projections are based on current economic indicators and historical trends. To the extent any of the underlying assumptions change, actual revenues could change.
Project Reporting and Delivery
The Public Works Department is committed to transparency, accountability, and efficient delivery of the Capital Improvement Program. To keep stakeholders informed, staff will provide regular updates to the City Council and the public, highlighting key milestones, delays, or changes in project status. A centralized project information page will be maintained on the City’s website, offering easy access to progress updates, photographs, and contact information. Regular email updates will be distributed to the City Council with concise project summaries, and public meetings or town hall events will serve as forums for live updates and community feedback when applicable.
To support efficient project delivery, the City is utilizing tools to track progress, monitor budgets, and manage resources in real time. Key performance metrics such as schedule adherence and cost control are closely monitored. The Public Works Department is also exploring initiatives to streamline processes, including pre-purchasing long-lead equipment and initiating early permitting activities, to ensure projects are shovel-ready at the project award. To foster a competitive bidding environment, the City will also issue construction opportunity lookahead schedules to provide contractors with advanced notice of upcoming work. In addition, contractor recognition programs are being evaluated to promote excellence and build long-term partnerships with high-performing firms.
A copy of the CI Plan is included as Attachment 1.
ENVIRONMENTAL IMPACT:
The proposed action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
Each capital project listed in the CI Plan will include various technical studies as part of the environmental evaluation of the approved project. The results of the technical studies will dictate the appropriate environmental document for the specific project.
GENERAL PLAN CONSISTENCY:
Rialto Municipal Code section 2.22.010 created the Rialto Planning Commission. Pursuant to Section 65103 of the California Government Code, the Planning Commission is required to annually review the capital improvement program and local public works projects of other local agencies for consistency with the City’s General Plan.
Approval of this action complies with the following City of Rialto Guiding Principles, General Plan Goals, and Policies:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Staff developed the CI Plan through a collaborative process based on the City’s four guiding principles as described in the Rialto General Plan, with input from the City Council and City departments. The guiding principles:
1. Rialto Is a Family First Community.
• Our neighborhoods will be a safe place to call home.
• Essential community services and amenities must meet the needs and desires of our families.
• We will require high-quality housing for our families and establish well-maintained, safe, attractive neighborhoods.
• We will create a sense of community that bonds residents and families together, resulting in a stronger, better Rialto.
2. Rialto Shall Attract High-Quality New Development and Improve Its Physical Environment.
• First impressions matter. The quality and standards of our streetscapes and public spaces will reflect the high quality of development we require.
• Infrastructure keeps pace with our growth. Every act of construction will result in the improvement and enhancement of both the public and private realms.
• We pay attention to the details. We have high standards and will maintain our properties and enforce our codes at all times.
3. Rialto’s Economic Environment Is Healthy and Diverse.
• Businesses, City government, and economic development organizations will continue to work together to strengthen the local economy and support businesses.
• We will aggressively attract and retain businesses that provide goods and services we desire, create jobs, and build a sustainable tax base.
• Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
• We take advantage of our status as the transportation hub of the Inland Empire.
• Rialto is committed to environmental sustainability, which means meeting the needs of the present without compromising the ability of future generations to meet their own needs.
4. Rialto Is an Active Community.
• Our community will support the creation and maintenance of attractive parks, recreational facilities, and gathering places that meet the needs of our residents.
• We will create transportation alternatives that allow us to walk, bike, and use public transportation to travel within our community and reach regional destinations.
• We will continue to participate in community-based events that enrich our lives.
LEGAL REVIEW:
The City Attorney’s Office has reviewed the CI Plan and approved it as to form.
FINANCIAL IMPACT:
Operating Budget Impact
This action will not have a direct impact on the operating budget. Construction of the various projects in the CI Plan will be added to the operating budget in future years, and the maintenance cost implications are determined with each project as the projects move forward with planned design and construction.
Capital Improvement Budget Impact
The approval of the FY 2026-2030 CI Plan has no direct impact on the Capital Improvement Budget. All projects identified in the CI Plan requiring funding will be presented to the City Council for separate budget appropriation approval. This step is essential to ensure transparency, fiscal accountability, and alignment with the City’s strategic priorities. City Council approval provides an opportunity for their review of the scope, timing, and funding needs of each project, allowing for informed decision-making that reflects the needs and interests of the community. It also enables the City to manage its financial resources responsibly by evaluating project costs within the context of available funding and other competing priorities.
Funding Summary
The FY 2026-2030 CI Plan includes programmed allocations totaling approximately $299.2 million over the five-year period. The plan programs 61 projects, proposing to provide full funding to construct 52 projects, complete five (5) studies, and initiate the planning and design phases for the remainder of the projects.
A major challenge for the CIP is to identify available funding. A summary of the projected available funds and revenue by funding source for FY 2026-2030 is shown in Table 1 below. Revenue projections in the CI Plan were determined using historical trends and projections based on new development, anticipated changes in population, and the City’s economic condition.
Table 1- Projected Available Funds and Revenue Summary
There is $60 million in anticipated carryover funds from prior years, along with a projected $101.5 million for FY26. This projection includes $94 million in special revenue funds and an estimated $7.5 million in General Fund appropriations. The estimate for the General Fund is based on a conservative analysis of historical data and is contingent upon the availability of unrestricted general funds, the City’s financial position at the end of the fiscal year, and approval of the appropriations by the City Council.
Tables 2 and 3 below summarize the projects from the CI Plan that are programmed to receive funding in the first year (FY26) of the five-year plan, subject to City Council approval of appropriations through future actions. These FY26 appropriations would fully fund the 14 active capital projects that currently have a funding need. Ensuring that the active capital projects are fully funded in FY26 provides financial certainty, supports timely and efficient project delivery, and demonstrates a clear commitment to completing the projects without relying on future budget cycles. This approach enhances accountability and transparency in the City’s capital planning process. The unprogrammed balance of the FY26 fund allocations goes towards initiating 30 new projects.
Table 2 outlines the projects that are proposed for programming in FY26 from the General Fund, subject to City Council approval of appropriations through future actions. It is important to list only General Fund projects in this table to provide a clear and focused view of the financial commitments that directly impact the City’s General Fund. By isolating General Fund projects, staff and Council can more accurately assess the impact of capital expenditures on the City’s operating budget and ensure that these investments align with available resources and policy priorities. These appropriations are estimated to be valued at $6.63 million proposed in FY26, partially or fully funded by the General Fund, and include the following projects listed in order by asset type, consistent with the CI Plan.
Table 2: Proposed Projects Programmed by the General Fund in FY26
Table 3 outlines the projects proposed for programming in FY26 from the special revenue funds. The majority of proposed allocations in the 5-year plan are made up of special revenue funds, specifically 89% of proposed allocations for FY26 and 84% of proposed allocations over the five-year plan. This is primarily due to the City’s success in securing grants and maximizing the use of other funding sources, such as Development Impact Fees and local funds dedicated to transportation, including Measure I, Gas Tax, and Senate Bill 1 Gas Tax, while preserving General Fund resources.
Table 3: Proposed Projects Programmed by Special Revenue Funds in FY26
Table 3: Proposed Projects Programmed by Special Revenue Funds in FY26 (continued)
The FY 2026-2030 CI Plan represents the City's strategic approach to infrastructure investment, balancing immediate needs with long-term planning. By maximizing special revenue funds and grants while carefully allocating General Fund resources, the City demonstrates fiscal responsibility while addressing critical infrastructure priorities. This plan ensures that essential public facilities and services are maintained and enhanced to support community growth and quality of life.
Licensing
No Business License tax is required with this action.