Item - 2026.EX31.5

The Executive Committee recommends that:

1. City Council approve the adjustments to carry-forward funding of an additional $237.2 million from unspent capital projects funding as detailed in Appendices 1a and 1b to the report (April 28, 2026) from the Chief Financial Officer and Treasurer in order to continue work on previously approved capital projects in 2026 and beyond, and that the 2026-2035 Tax and Rate Supported Capital Budget and Plan for respective City Programs and Agencies be adjusted accordingly.

2. City Council approve in-year budget adjustments to the 2025 and future year cash flow commitments, as well as reallocations of funding sources for prior Approved Capital Budgets, as detailed in Appendices 2a and 2b to the report (April 28, 2026) from the Chief Financial Officer and Treasurer.

As part of the 2026 Budget process, the 2026-2035 Capital Budget and Plan included $968.7 million of previously approved unspent funding for capital projects to be carried forward to 2026-2035. This carry-forward amount was based on an initial estimate of projected spending at the time of budget development, which was prior to the 2025 year-end closing. With the 2025 fiscal year close in February 2026, City Programs and Agencies have finalized the 2025 actual project spending as well as the total carry-forward needed. The primary purpose of this report is to seek Council's approval for an additional $237.2 million in carry-forward funding from 2025 to 2026-2035 period.

With the incremental carry-forward request, the total capital carry-forward funding from 2025 to the 2026-2035 Capital Budget and Plan will be $1.206 billion, and the total adjusted 2026 Tax and Rate Supported Capital Budget including previously approved carry-forward amount will be $5.889 billion. The revised total carry-forward funding is equivalent to 20.5% of the total 2026 Tax and Rate Supported Capital Budget.

This report also brings forward in-year capital budget adjustment requests for previously approved budget and future year commitments, taking into account the recommended incremental carry-forward. Approval of these requests is needed to provide the necessary spending authority to continue with capital project delivery.