City of Capitola

The council meeting addressed several community concerns, including a proposed budget increase for the Plein Air festival, requests to restore a commemorative plaque for Harry Hooper at the wharf, and concerns regarding traffic safety and bike lane improvements. A primary focus of the meeting was the transition to voting districts, including a review of the project timeline, the establishment of upcoming public hearings, and proposed strategies for increased community outreach and engagement through both in-person and virtual platforms.

The council held a budget hearing to review the operating budget and the capital improvement program, discussing revenue and expenditure assumptions, including reliance on sales tax, contingency reserves, and fund balance projections. The meeting also included an overview of the capital improvements program, highlighting completed and ongoing infrastructure projects such as park restorations, the community center, and bridge alternatives, as well as discussions on sidewalk improvements and electric vehicle infrastructure requirements for the corporation yard.

The council meeting included a proclamation for National Beach Safety Week and an announcement regarding the opening of the lifeguard season. Key recognitions were presented, including the 2025 Herb Ross Officer of the Year award and an acknowledgement of the Chief’s Advisory Committee. Other topics discussed included the removal of a park reservation improvement item from the agenda, a report on closed session, updates on property code violations and housing project funding, and public feedback regarding website accessibility, redistricting hearings, and traffic infrastructure projects.

The Planning Commission discussed various topics, including public concerns regarding a proposed multi-unit housing project near the Capitola Mall, specifically addressing height, density, and traffic impacts. The Commission was updated on an upcoming RFP for a future restaurant and fishing concession. Additionally, the commission reviewed and moved forward with items on the consent calendar and held public hearings for a subdivision application at 2091 Wharf Road, which was continued to a future date, and a presentation on the 41st Avenue, Clares Street, and Capitola Road corridor plan, focusing on safety, multi-modal transportation, and community identity.

The council held a study session to review the proposed fiscal year 2026-2027 budget. Key topics included a summary of general fund revenue projections, with particular focus on sales tax, property tax, and potential revenue from a new Tesla dealership. The discussion addressed personnel cost increases, driven largely by pension obligations (CalPERS), and current economic uncertainties. Additionally, the council reviewed the status of restricted special revenue funds, including road maintenance, library funding, and parks, as well as the status of outstanding FEMA and Cal OES reimbursements related to storm damage.