At FirmoGraphs, we ensure our clients are always in the know about capital plans that matter for their long-term business growth. With our assistance, our customers can leverage this information to gain an edge over their competitors and engage in more proactive discussions with their clients. Recently, we analyzed the latest capital spending plan released by the City of Palo Alto, California. Here are our observations.
In the CIP covering the 2024-2028 fiscal years, the City of Palo Alto, California, detailed plans to spend over $1 billion on capital projects, an increase of 44% from $757.8 million in its 2023-2027 CIP. The current CIP has 229 line items, compared to 193 line items in the prior CIP. The table below breaks down Palo Alto’s planned capital spending by business area for its last two CIPs.
*Numbers are Rounded
Planned spending in the Electric Fund category tripled, from $98.6 million to $290.5 million. The 195% increase is going toward Grid Modernization for Electrification to provide Palo Alto with an electric infrastructure adequate to support the city's goal of 100% electrification and 80% carbon emissions reduction by the year 2030, costing $200 million. Two new projects under the Traffic and Transportation category resulted in an increase of nearly $170 million.
On the other hand, the Wastewater Treatment category decreased by 32% due to the Secondary Treatment Upgrades project, worth $144.7 million, nearing its completion.
Within the City of Palo Alto's capital plan, there are four significant projects with a value exceeding $20 million. Two of these projects fall under the Transportation category, including the Meadow Dr./Charleston Rd. Rail Grade Separation and Safety Improvements, worth $115.1 million, and the Churchill Avenue Rail Grade Separation and Safety Improvements-Main, valued at $59.3 million. These projects aim to construct grade separations, as well as enhance bicycle, pedestrian, and vehicle movement at crossings.
Furthermore, the Wastewater Treatment category has allocated $23 million for the construction of the New Laboratory and Environmental Services Building. Additionally, there is a plan to invest $22.3 million in the Streets and Sidewalks category for the Newell Road/San Francisquito Creek Bridge Replacement project.
FirmoGraphs curates data about U.S. public sector markets, including capital plans, regulatory developments, and other critical information. We help our customers use this information to gain a competitive advantage and improve proactive conversations with their clients. We’d be glad to meet with you and help your company sort through the wealth of information in capital plans and other publicly available documents. Feel free to request a meeting and review the data live on our Business Intelligence platform.