Capitola City Council 05/21/2026

The Capitola City Council held a budget hearing on May 21, 2026, focusing on the fiscal year 2026-27 operating budget and capital improvement program (CIP). Key procurement-related discussions included updates on capital projects such as the Cliff Drive resiliency project with an estimated $12 million for phase one and $33 million total, funded partly by federal and state grants. The council reviewed funding strategies involving grants like CDBG and federal safety grants, emphasizing the need for shovel-ready projects to leverage external funds. They also discussed reallocating $200,000 in Regional Transportation Improvement Program (RTIP) funds from the Bay Avenue corridor project to preliminary planning for the Capitola Trestle, a city goal for trail connectivity. Parking rate adjustments and revenue generation from recreation programs were considered, with plans for outreach and potential fee increases. The council addressed transparency concerns regarding Measure Y funds and agreed to include a dedicated line item in future budgets for clearer reporting. Several motions were passed, including authorizing staff to request RTIP fund reprogramming and continuing budget deliberations with a final adoption deadline of June 25, 2026.