San Mateo adjusts capital improvement budget amid funding shifts

This upcoming fiscal year, which starts in July, required some changes in funding source allotments. For instance, the typical general fund annual contribution to the capital budget will likely be half the typical amount, and contributions from the Measure S sales tax is also lower.

“We budgeted about $3 million and $3.7 million in Measure S funds the previous two fiscal years,” Finance Director Abby Veeser said during a council meeting April 20. “Because we kind of over-budgeted those two years, we need to under-budget this year in order to build that balance.”

The city plans to offset the loss with some Measure CC funds — a property transfer tax — and a dip into its capital reserve. The changes are part of a larger five-year capital improvement plan, with street and transportation projects accounting for $57 million over five years and $228 million for sewer projects, the latter accounting for roughly 65% of the project.

Other projects that will be at least partially funded and advance in the upcoming fiscal year include a new fire station, several playground upgrades — including Washington and Trinta parks — as well as the Skate Plaza improvements.

Perhaps the most highly-anticipated effort is a revamp of the Martin Luther King Jr. Center. The effort will be completed in two separate phases, with the first phase partially funded already — a little over $5 million already allocated — which will go to early design and preconstruction work for a new pool and locker rooms, among other updates. In response to widespread community concern in the North Central neighborhood, City Manager Alex Khojikian confirmed that should the council approve the current proposals, the first phase would still continue to advance.

“If you’re putting that type of money, and we’re going to expend funds moving towards that, I don’t see how you would want to do a U-turn,” Khojikian said during the meeting. “We would have to come up either through outside grants or other funding streams within our city budget to go ahead and fund the full amount of phase one.”

Both phases of the MLK project are expected to cost roughly $16 million. The City Council will review the item again with final adoption in June.