City Council Meeting Date: November 18, 2025
To: Mayor and City Council
From: Ben Martig, City Administrator
David Bennett, Public Works Director/City Engineer
Brenda Angelstad, Finance Director
Title
Review Capital Improvement Plan and Capital Equipment Plan (2026-2030) items.
Body
Action Requested:
None
Summary Report:
Updated Capital Equipment and Capital Improvement Plans included.
Alternative Options:
The CIP/CEP is a 5-year plan that looks at the City’s needs for infrastructure improvements along with equipment needs for service delivery. Please see attached draft CIP/CEP presentation and plans. The draft CIP/CEP has been updated since first presented to Council back in June, along with a few updated from Council input on November 4th. The updates and edits from November 4th are shown below:
1. 2026 Removed the addition of a new Parklet, and replaced it with adding more age friendly/stable furniture to the Parklet on the 300 block of Division St.
2. Moved Cedar Meadow new park back to 2031, outside the current CIP. The private development is currently tentatively planned for 2025 or 2026 commencement.
Additionally, the City Council discussion included the possibility of including items in the CIP report that are being actively worked on but still significant issues to resolve before being confident that they should be in the 5-year plan. The term suggested was to “parking lot” the idea to have it noted but not called out. Staff has reviewed and believes this can be achieved. Staff intends to create a “categorization description” that would be used to determine have a description that would sort projects into categories (“on-hold” vs. “active” vs. “being explored”) based on criteria. Staff hasn’t developed it yet. However, the following are projects in the CIP (highlighted on attachment) that are proposed to be put into an “on hold being explored” or similar descriptor:
• Bridge Square - The street reconstruction and Bridge Square improvements final construction plans are complete and a Certificate of Appropriateness approved by Heritage Preservation Commission. The funding is the main issue at this point to resolve and is “on-hold” dependent upon funding prioritization. There are past expenses incurred within a project fund with a balance of about $600,000. It is anticipated that at a minimum these past expenses will require funding during the CIP 2026-2030 time period. Additionally, future project initiation is dependent upon funding priority and may include grants or other funding to be prioritized in the future.
The following projects are not currently in the 2026-2030 CIP but are being evaluated for potential activation depending on different stages of the project:
• Water Treatment Plant - location determined but scoping, timing, and funding are not specifically determined. However, this may be activated for review again within the timeframe of the CIP (2026-2030).
There are other projects being evaluated for potential inclusion in the “on hold” projects such as the 5th & Washington development, Liquor Store project, Water Street redevelopment. Staff also is working to add additional project scope related to the potential food shelf expansion that is a separate agenda item related to exploring State Capital bonding to cover those costs.
If there are questions, clarifications or concerns on the pending approvals scheduled at the December 2nd Council meeting this would be an appropriate time now to raise them versus at the December 2nd Council meeting. Similar to the budget and levy adoption, we would not include council questions at that meeting for this item (adoption of CEP and CIP) because this is the proposed plan presented to public and intended to be voted on at the December 2nd meeting.
Staff welcomes any input for clarity or additions prior to the December 2nd adoption of the CIP/CEP. When the CIP/CEP is adopted, the funding is provided for equipment and projects identified in 2026, and design will begin on 2027 projects in 2026.
Staff has updated the 2026 CIP projects and there were no changes proposed to the 2026 CEP. Therefore, staff is preparing those for the budget presentation.
The goal for the meeting related to the 2027-2030 CEP and CIP items is a continued conversation but no formal commitments on those years at next week’s meeting. The 2027-2030 CEP and CIP will have disclaimers noting added to the document explaining the active status of review on these years.
Staff is proposing to have the full 2026-2030 CEP and CIP items included for adoption at the December 2nd meeting. As explained in the memo, the Council approval would in effect appropriate funding commitments for 2026 and clarify intentions to continue to explore the future years 2027-2030 early in 2026 (January or February). As noted earlier, if there are questions, clarifications or concerns on the pending approvals scheduled at the December 2nd Council meeting this would be an appropriate time now to raise them versus at the December 2nd Council meeting. Similar to the budget and levy adoption, we would not include council questions at that meeting for this item (adoption of CEP and CIP) because this is the proposed plan presented to public and intended to be voted on at the December 2nd meeting.
Financial Impacts:
Not applicable.
Tentative Timelines: