County of San Mateo Five Year Capital Improvement Plan
FY 2021-26

Introduction

The County of San Mateo’s Five-Year Capital Improvement Plan (CIP) is a planning tool designed to identify short- and long-term capital improvement needs of the County and align those needs with appropriate financing, scheduling, and implementation. The CIP is intended for use in conjunction with the County Budget to ensure a more fiscally responsible and efficient use of existing resources. The CIP represents a commitment to building a more resilient and vibrant future for residents, employees, and visitors.

This CIP outlines the County’s capital needs for the next five years for a total value of $894,138,802. The first two fiscal years of the CIP consist of the planned expenditures for FY 2021-22 and FY 2022-23. Projected expenditures shown for the remaining three fiscal years (FY 2024-26) are estimates used for planning purposes and do not necessarily reflect a commitment of funds. As projects are completed, new capital needs arise, and available resources change, the CIP will be revised periodically, with updated budget amounts provided in the Adopted Budget each year.

For more information on all Capital Improvement Projects, see each individual department's page: Department of Public Works, Parks Department, and the Project Development Unit.

A capital project is defined as the purchase, construction, improvement, or replacement of major fixed assets such as land, buildings, or equipment. Additionally, capital projects may apply to:

  • - Expenditures that occur over two or more years and require continuing appropriations beyond a single fiscal year
  • - Systematic acquisitions that take place over an extended period of time
  • - Scheduled replacement or maintenance of specific elements of physical assets

The Capital Improvement Plan supports the goals of the County’s Shared Vision 2025 to provide for a healthy and safe, prosperous, livable, environmentally conscious, and collaborative community. The continued development of capital infrastructure and facilities will be essential to accommodate the County’s future growth and prosperity. The capital improvements identified in this CIP represent significant public investments to maintain, improve, and expand the infrastructure and facilities serving the residents of San Mateo County.

The projects in the CIP are managed and coordinated by Department of Public Works (DPW), the Project Development Unit (PDU), and the Parks Department. The process for developing the list of projects varies by department and is described in detail within each section. Each department developed its portion of the capital plan through coordination with multiple stakeholders, including constituents, the Board of Supervisors, County executive staff, and other County departments.

Capital Improvement Plan Budget

The projects in this Capital Improvement Plan total $563.7 million in FY 2021-22, a seven percent increase from the Recommended Budget, $167.7 million in FY 2022-23, and $891.1 million over the full five years of the plan. The first two years of the CIP consist of budgeted expenditures that are captured in the FY 2021-22 Adopted Budget and in the FY 2022-23 Preliminary Approved Budget. The projected expenditures shown for the remaining three fiscal years are included in the CIP for long-term project planning purposes and do not necessarily reflect a commitment of funds. Capital appropriations and priorities will need to be set for each two-year budget cycle. As funding sources change and evolve, the information in the CIP will be periodically updated.The table below summarizes the cost by year and by funding source.

Capital Improvement Plan by Funding Source

Funding Source FY 2021-22
Adopted
FY 2022-23
Projected
FY 2023-26
Projected
Five Year Total
Bond 364,100,594 - - 364,100,594
Departmental 29,457,985 977,626 18,133,186 48,568,797
Rent Facilities Service Charge Fee 2,904,208 258,166 - 3,162,374
General Fund 137,811,407 155,582,543 135,293,636 428,687,586
Grants/Donations 2,849,095 4,245,000 100,000 7,194,095
Measure K 26,575,356 6,650,000 6,200,000 39,425,356
Total            $563,698,645 $167,713,335 $159,726,822 $891,138,802


Among the three departments represented in the CIP, the Project Development Unit has the largest share of total costs at $679 million.

Each project in this Capital Improvement Plan has one or more identified funding source. The main sources are:

General Fund Non-Departmental Services contains general purpose revenues, including property tax, sales and use tax, Transient Occupancy Tax (TOT), interest earnings, and overhead recovered from Non-General Fund departments through the 2 CFR Part 200 cost allocation plan. These revenues, along with Non-Departmental Fund Balance, are used to offset Net County Cost in General Fund departments. This budget unit also includes appropriations that benefit many or all departments such as countywide IT projects, facility repairs, capital improvement projects, and debt service payments. Funding major capital projects upfront through Non-Departmental Services reduces the administrative costs for the departments that occupy them.

Lease Revenue Bonds are issued and sold to investors to provide the debt financing necessary for several major capital projects. Projects financed with these kinds of bonds must be depreciable and are structured as secured leases of a public building or asset, and typically have a  revenue-generating or reimbursement component, which helps to offset the debt service. Using bond financing for such projects allows the County to save General Fund dollars for capital projects that are non-revenue generating and/or that will depreciate more quickly. In June 2021, the San Mateo County Joint Powers Financing Authority (JPFA) issued a Series A lease revenue bond for approximately $155 million to finance the construction of the Cordilleras Mental Health Facility in Redwood City.

Departmental sources of funding for capital projects include departments’ Net County Cost allocation amounts and department reserves.

Measure K is the County’s half-cent sales tax. Originally passed by the voters in 2013 as a 10-year tax and extended in 2016 for an additional 20 years until 2043, Measure K typically generates approximately $90 million per year. Measure K funding is invested in a variety of capital and technology projects across the categories of Public Safety, Mental Health, Youth and Education, Housing and Homelessness, Parks and Environment, Older Adults and Veterans Services, and Community Services. Major Measure K capital investments include the Regional Operations Center (the single largest Measure K investment to date), which will serve as the County’s central hub for disaster response. Other Measure K capital investments include the renovation and construction of several County libraries and the development of SMC Public Wi-Fi.

Rent Facilities Service Charge Fee A fee is charged to departments that pay facility service charges through a service level agreement with the Department of Public Works. These charges provide an annual budget for facilities projects to keep County-owned building infrastructure in safe and operable condition and to maintain and extend the useful life of the facilities.

Donations include contributions from individuals or foundations for parks or other projects.

Find more information about each of the three departments' projects and budgets for FY 2021-26:

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