REPORT TO PARKS & RECREATION COMMISSION
SUBJECT
Title
Review of the Proposed FY 2026/27 & FY 2027/28 Biennial Capital Improvement Program Budget and FY 2026/27 Operating Budget Amendments
Report
BACKGROUND
City Charter Section 1302 (Budget - Submission to the City Council) requires that at least thirty-five (35) days prior to the beginning of each fiscal year, or at such prior date thereto determined by the City Council, the City Manager shall submit the proposed budget to the City Council.
The proposed biennial budget process continues the City’s alternating biennial budget cycle between operating and capital budgets. This year’s proposed budget (Attachment 1), released on April 28, 2026, focuses on the capital infrastructure, supporting the facilities that serve our residents and community. Amendments to the FY 2026/27 Adopted Operating Budget are also included.
A Budget Study Session was held on May 5, 2026, and a second session is scheduled for May 19, 2026. Final adoption of the budget is scheduled for consideration at the June 9, 2026 City Council meeting.
On April 14, 2025, the Parks & Recreation Commission added Goal 5, “Consider the annual budget of the Department of Parks & Recreation during the budget preparation process and make recommendations with respect thereto to the City Manager and City Council,” to its FY 2025/26 workplan.
The purpose of this report is to provide an opportunity for the Commission to review the proposed budget as it relates to the capital improvement program for projects under the purview of the Department and to provide feedback on those projects.
DISCUSSION
The annual budget serves as a financial plan and operational guide that reflects the City’s policies, goals, and priorities, including those of the Parks & Recreation Department (Department). The capital budget guides the planning, scheduling, and budgeting of capital investments within the Department.
At the May 11, 2026 Commission meeting, staff will present the Proposed FY 2026/27 & FY 2027/28 Biennial Capital Improvement Program Budget and FY 2026/27 Operating Budget Amendments (Attachment 2), with an emphasis on projects and items related to the Department.
The budget information is summarized as follows:
Biennial Capital Budget
The Capital Improvement Program (CIP) guides the Department in the planning, scheduling, and budgeting of capital investments within the Parks and Recreation system. The FY 2026/27 and 2027/28 Proposed Biennial Capital Budget is a carefully balanced budget that continues strategic investments in the Department’s infrastructure and totals $12.5 million of capital funding.
Table 1 below provides a breakdown of the proposed capital budget by theme.
|
Table 1: Proposed CIP by Theme |
|
Theme |
2026/27 Budget |
2027/28 Budget |
Total Biennial Budget |
Total Five-Year CIP |
|
Community Facilities* |
$4,508,750 |
$0 |
$4,508,750 |
$4,508,750 |
|
Parks and Trails |
$7,296,000 |
$742,145 |
$8,038,145 |
$19,874,595 |
|
Total Capital Budget |
$11,804,750 |
$742,145 |
$12,546,895 |
$24,383,345 |
*The Community Facilities Capital Improvement Program budget includes projects from both the Parks & Recreation Department and the Library Department. The amounts above reflect Parks & Recreation Department projects only.
Additional investments in these areas are possible due to voter approval of Measure I in November 2024, which authorizes the issuance of $400 million in General Obligation Bonds to address infrastructure needs. Of this amount, approximately $115 million was allocated for parks, recreation, and library improvements, including $105 million specifically for Parks & Recreation capital projects. Project funding is anticipated to occur in three tranches between 2026 to 2036.
Approximately $1.0 million in General Fund Capital Projects Reserve (CPR) funding was also allocated to the Parks Improvements project under the Parks & Trails theme. CPR funding is derived from excess revenues and expenditure savings realized at fiscal year-end.
These investments will allow the Department to address many critical infrastructure needs, however, a significant funding gap remains. Unfunded projects identified in this budget total $49.4 million in the Community Facilities theme and $87.9 million in the Parks and Trails theme over the next five years. While this CIP identifies approximately $137.3 million in unfunded projects, total infrastructure needs are expected to be greater. The draft Parks & Recreation Master Plan estimates approximately $185 million to $260 million in Phase 1 (Years 1-5) capital improvement needs, including facility expansions and renovations.
Following are some of the key investments by theme detailed in the Capital Improvement Program section of the Proposed Budget:
• Community Facilities:
o Community International Swim Center Aquatic Facility Renovation/Replacement
• Parks and Trails:
o Warburton Park Playground Renovations
o Maywood Park Playground Rehabilitation
o Earl Carmichael Park Playground Rehabilitation
o Community Park North - Phase 1 (developer funded)
o Mary Gomez Park Playground Rehabilitation
o Park Improvements and Repairs
FY 2026/27 Operating Budget Amendments
The City Council approved the FY 2025/26 and 2026/27 Biennial Operating Budget in June 2025. While this year’s budget is focused on the capital budget, amendments to the FY 2026/27 Adopted Operating Budget are necessary to reflect the updated revenue estimates and to account for updated labor and non-personnel costs.
A major change in the 2026/27 Operating Budget includes a net increase of 6.0 full-time equivalent (FTE) positions, as detailed below:
• Net addition of 6.0 positions (1.0 Management Analyst, 3.0 FTE Office Assistants, partially offset by reduction in As-Needed, and 2.0 Recreation Coordinators)
• Net-Zero Reclassifications to better align staff to meet service needs (Deputy Director to Assistant Director, Recreation Manager to Division Manager, Park Maint. Crafts Worker to Parks Construction, Maintenance and Repair Manager, Recreation Supervisor to Recreation Coordinator, Office Specialist III to Staff Aide I, Health and Wellness Coordinator to Recreation Coordinator)
• Removal of 3.0 Grounds Maintenance Worker I/II positions and 1.0 Office Specialist from frozen position list
The Department’s amended FY 2026/27 Operating Budget is $25.9 million, including the proposed position changes above.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environment Quality Act (“CEQA”) pursuant to section 15378(a)(4) of Title 14 of the California Code of Regulations in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.
FISCAL IMPACT
The Proposed Biennial Capital Budget for the Parks & Recreation Department totals $11.8 million in FY 2026/27 and $0.7 million in FY 2027/28. The proposed Operating Budget for FY 2026/27 is $25.9 million. The combined proposed FY 2026/27 capital and operating budgets total $37.7 million.
PUBLIC CONTACT
Public contact was made by posting the Parks & Recreation Commission agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
It is recommended that the Commission:
1. Review the report and presentation related to the Proposed FY 2026/27 & FY 2027/28 Biennial Capital Improvement Program Budget and FY 2026/27 Operating Budget Amendments; and
2. Provide feedback regarding the projects under the purview of the Parks & Recreation Department.
Staff
Reviewed by: Kimberly Castro, Recreation Manager
Approved by: Damon Sparacino, Director of Parks & Recreation
ATTACHMENT
1. Proposed FY 2026/27 & FY 2027/28 Biennial CIP Budget & FY 2026/27 Operating Budget Amendments
2. Proposed FY 2026/27 & FY 2027/28 Biennial CIP Budget & FY 2026/27 Operating Budget Amendments Presentation