Capital Improvement Program Summary

Fiscal year 2023/24 - 2024/25

Capital Improvement Program Defined

The City’s Capital Improvement Program (CIP) is a seven-year planning document that drives the evaluation and identification of capital. Capital projects include road maintenance or construction, the renovation or construction of municipal buildings and park facilities, and a variety of other projects. The CIP relates these projected capital needs to the funding sources that will facilitate their construction over a multi-year period.


Benefits of the Capital Improvement Program

CIP projects are designed to address growth in the City, impacts from public and private development, and the goals and objectives of the City Council. The CIP formulation process focuses attention on improving or constructing the capital improvements necessary for providing the services and facilities expected by the residents and businesses of the City, both today and tomorrow.


The CIP and the City’s Operating Budget

The Capital Improvement Program is developed in parallel to the City’s Two-Year Budget. However, the approval of the CIP does not signal appropriation of funds. Rather, the CIP serves as a planning instrument for both budgeting and infrastructure development. Appropriations are made for capital projects when the City Council approves the Two-Year Budget for the City


The Capital Improvement Program is different from the Two-Year Budget as it sets forth a seven-year program. The first two years’ programs contain projects that are included in the proposed Two-Year Budget for the upcoming fiscal year. The remaining five years reflect staff’s recommended priorities for the future and are subsequently reviewed and revised by the City Council.


Development and Adoption of the CIP

The development of the City’s Capital Improvement Program occurs in parallel to the Two-Year Budget process over approximately a four-month period. The Finance Department initiates the process by providing a preparation guide and schedule to City Departments. The Departments then prepare project lists and projects budget, which are matched with available funding to generate two sets of project lists. The Tier I CIP contains projects for which funding is available currently, while the Tier II CIP contains projects for which no funding is currently identified. Once complete, Departments submit their CIP to the City Manager’s Office for review and approval by the City Manager. The Finance Department then finalizes the Capital Improvement Program for preliminary City Council review and conceptual approval. Projects for which conceptual approval has been attained are includes in the Two-Year Budget as proposed for adoption by the City Council.


Amending the Capital Budget

At any Council meeting after the adoption of the Two-Year Budget, the City Council may amend or supplement the CIP.


CIP Program Sections

Capital projects are grouped into nine program sections in the Capital Improvement Program. They are:

• Municipal Buildings and Facilities

• Parks & Recreation Facilities

• Black Gold Golf Course

• Street Improvements

• Traffic Control Improvement

• Storm Drain Improvements

• Landscaping Improvements


Municipal Buildings and Facilities

The Municipal Buildings and Facilities program includes expenditures for constructing and improving municipal facilities such as parking lots, City Hall, and the Yorba Linda Public Library. Projects of a recurring nature such as facility painting and parking lot slurry seals are also included in the Municipal Buildings and Facilities CIP.


Parks & Recreation Facilities

The Parks & Recreation Facilities program includes projects to construct, maintain, and upgrade parks, fields, and equestrian facilities, as well as Parks & Recreation Department buildings such as the Community Center and Field House.


Black Gold Golf Course

The Black Gold Golf Course program includes projects to maintain and upgrade the City's golf course and club house facility.


Street Improvements

The Street Improvements program includes projects to extend and widen streets, street resurfacing, construction of curbs, gutters, center medians, bikeways & pedestrian facilities, and right-of-way acquisition.


Traffic Control Improvements

The Traffic Control Improvements program includes projects to add or modify existing traffic signals and other traffic control devices.


Storm Drain Improvements

The Storm Drain Improvements program includes projects that maintain or enhance the City’s flood protection system.


Landscaping Improvements

The Landscaping Improvements program includes projects to add, maintain, or enhance median, parkway, and other landscaping maintained by the City.


Miscellaneous Improvements

Other capital improvements including IT improvements and projects that can't be categorized in the project types listed above.


Funding Sources

The City employs a combination of approaches to fund its capital projects. For most projects, funds are appropriated from cash on hand, which is generated from a number of sources such as development impact fees, dedicated transportation funding including gas tax and Measure M2 funding, and to a lesser degree, the General Fund. Large-scale capital projects are sometimes funded through other methods, including long-term financing and competitive grants.


The various funding sources that provide revenue for the City’s CIP projects are described below by CIP program section. General Fund revenue sources are not described, due to the complex nature of sources providing revenue to the General Fund. The General Fund’s major support comes from property tax and sales tax.


Municipal Buildings and Facilities

Projects included in the Municipal Buildings and Facilities CIP are funded primarily from the General Fund. Major revenue sources include:

• General Fund Revenues – General Fund revenues allocated to capital projects.

• Special Reserve Funds – A component of General Fund Budget Reserves that is set aside for the purpose of funding the periodic refurbishment of municipal buildings and facilities.

• Library Fund Revenues or Reserves – Library Fund revenues or reserve funds allocated to capital projects.

• PEG Funds – Funds collected as a surcharge on cable television bills that must be utilized to fund capital improvements related to delivering content via the Public, Education, and Government (PEG) access channels.


Parks and Recreation Facilities

Capital expenditures for Parks and Recreation Facilities are funded primarily from the General Fund. Major revenue sources include:


• General Fund Revenues – General Fund revenues allocated to capital projects.

• Special Reserve Funds – A component of General Fund Budget Reserves that is set aside for the purpose of funding the periodic refurbishment of municipal buildings and facilities.

• Park In-Lieu Funds – portions of fees charged when property is developed that are dedicated to the funding of parks and recreation facilities.

• Miscellaneous Grant Revenues - Competitive grants are utilized whenever possible.


Black Gold Golf Course

Capital expenditures for the City’s Black Gold Golf Course are funded from the fees paid by users of the course.


Street and Traffic Control Improvements

Capital expenditures for the construction and improvement of street and traffic control infrastructure are primarily funded from dedicates revenue sources that are earmarked for transportation-related projects. Major revenue sources include:


• General Fund Revenues – General Fund revenues allocated to capital projects.

• Special Reserve Funds – A component of General Fund Budget Reserves that is set aside for the purpose of funding the periodic refurbishment of municipal buildings and facilities.

• State Gas Tax Revenue – Revenue generated by the State’s tax on gasoline sales that is dedicated to local transportation capacity improvements.

• Measure M2 Sales Tax Revenue – A City and County funding source generated from Orange County’s half-cent sales tax dedicated to transportation projects that is allocated directly to the City as well as through the Orange County Transportation Authority.

• Road Maintenance Rehabilitation Act (RMRA) Revenue- Senate Bill (SB) 1 created the RMRA to address deferred maintenance on the State Highway System and the local street and road system. A portion of this money is apportioned to cities and counties for basic road maintenance, rehabilitation and critical safety projects on the local streets and roads system.

• Transportation Impact Fees – A City funding source generated from portions of fees charged when property is developed that are dedicated to funding local transportation capacity improvements.

• Miscellaneous Grant Revenues - Competitive grants are utilized whenever possible.


Storm Drain

Capital expenditures for the construction and improvement of storm drains are primarily funded from Master Plan of Drainage Fund revenues, which are generated from portions of fees charged when property is developed that are dedicated to funding storm drain infrastructure projects.


Landscaping Improvements

Capital expenditures for the construction and improvement of median, parkway, and other landscaping are primarily funded through the City’s Landscape Maintenance Assessment District (LMAD). Major revenue sources include:

• General Fund Revenues – General Fund revenues allocated to capital projects.

• LMAD Revenues – Assessment revenues allocated to capital projects.

• Miscellaneous Grant Revenues - Competitive grants are utilized whenever possible.


Overview of the CIP

The Seven-Year Capital Improvement Program amounts to $137,955,739, of which $46,526,009 is included in the period covered by the Two-Year Budget. A complete list of all projects included in the CIP was provided to the City Council when the CIP was approved. Information regarding significant non-routine capital projects, operating budget impacts from all projects included in the first two years of the CIP, and summary financial information can be found in the tables below.


Unfunded Capital Projects

In addition to the $138.0 million seven-year funded CIP, unfunded capital project needs currently total $37.4 million. The majority of these projects are in the Street Improvements program. In the case of many of these projects, grant funds may be identified to fund portions of the project costs in the future.

Tier 1 Capital Improvement Projects

Tier 2 Capital Improvement Projects