Staff Report
Staff Report
Date of Meeting: August 24, 2026
To: Capital Investment Committee Members
From: Kyle Morell, City Administrator
Re: Staff Report
______________________________________________________________________________
July
CIP Worksheets
I have updated the CIP spreadsheets for 2027. In 2026, the City split out the 406 Fund, which was
Equipment Replacement and was used by both Public Works and Fire. The 406 Fund became the
Public Works Fund, and the 410 and 412 Funds were created for the Fire Department and the Public
Safety Building, respectively. Previous project lists in all funds were reviewed, and projects were
moved to the appropriate fund. Moving forward, the 401 Fund supports city-wide projects and the
City Hall/Community Center grounds. The 404 Fund is for Parks, the 406 Fund is for Public Works,
and the 408 Fund is for roads.
The Park and Recreation Committee has reviewed the park CIP, and they elected to make no changes
to the project list. They acknowledge they do not have the funding to complete any of the projects on
the list and are working on creating a plan for future project priorities.
Public Works and Fire have reviewed their funds and the 412 Fund for their building and have made
updates based on current needs. The 401 Fund remains unchanged.
August
CIP Worksheets
I have updated the worksheets based on the recommendations made at the July meeting. Additionally,
the following changes have been made:
401
- The levy amount was increased from $75,000 to $120,000. This was done to accommodate the
addition of $100,000 ($75,000 in 2027 and $25,000 in 2028) for the City’s 2050 Comp Plan.
Since this is a once-a-decade expenditure, I proposed adding it to the CIP fund and not the
City’s operating budget.
404
- I have removed the previously stated expenditure for the expansion of the pleasure rink, as the
Park and Recreation Committee does not plan to do this project in 2027.
406
- The 2027 levy amount has been reduced from $75,000 to $51,250. This decrease in amount
brings the annual increase to $1,250, from $50,000 to $51,250, which is in line with the
inflation rate for the past 12 months (3.51%).
- The estimated purchase price of the new plow truck has been reduced from $400,000 to
$350,000. Staff believes the actual cost may be lower than that.
408
- The levy amount has been increased from $463,664 to $647,660. This matches the 3.51%
inflation rate when compared to the 2026 levy amount of $451,708.
- The 2027 road construction project estimated cost has been increased from $595,000 to
$600,000
- The City had previously applied for state funding to cover the construction cost of the 2027
project, which is projected to be $500,000. We were denied. However, funds are still
available, and we are reapplying. If successful, the project cost to the City will be $100,000.
410
- The 2027 levy amount has been reduced from $75,000 to $51,250. This decrease in amount
brings the annual increase to $1,250, from $50,000 to $51,250, which is in line with the
inflation rate for the past 12 months (3.51%).
412
- No significant changes were made.
The new total CIP fund levy is $736,285. This is a slight increase over the amount presented to the
CIP Committee and Council of $731,626. The 2026 levy for the CIP funds was $716,708. The
question I posed to the Committee at the last meeting was whether we are allocating enough funding to
the CIP funds. We propose allocating about $20,000 more in 2027 than in 2026. Is that enough?
Attachments:
CIP Worksheets