Staff will present the proposed FY2027 Capital Improvement Plan (CIP) for discussion, but no recommendation is provided for the work session. The proposed 5-year plan is attached, and will be presented a regular City Council meeting in December for amendment and adoption.

The Capital Improvement Plan (CIP) is a critical component of our city's financial management and planning, serving as a blueprint for capital projects over the next five years. It is important to understand the significance of the CIP in ensuring responsible stewardship of our city's resources and the long-term well-being of our community. A CIP is a document that outlines a five-year strategy for capital projects. Capital projects are defined as those that exceed $50,000 in cost and have a useful life of more than one year. These projects encompass various areas, including new construction, property acquisition, and the renovation of existing structures. It's essential to note that the CIP does not cover routine vehicle purchases, repairs, maintenance, or operational expenses.

The CIP development process occurs annually and is designed to ensure a systematic and informed approach to capital planning. Here is a brief overview of the timeline:

• CIP development takes place internally in September and October.
• In October and November, the CIP is presented to the Budget and Finance committee for review.
• A work session with the City Council is scheduled in November to present the CIP.
• In December, the City Council considers the adoption of the CIP.
• The CIP is then utilized in developing the following years budget and rates and charges.

The proposed CIP for the next five years totals $525,075,957 across multiple city departments. The initial allocation for FY2027 amounts to $103,515,629. If adopted as presented, this amount will be included in the FY2027 budget. This significant financial commitment reflects our city's dedication to improving infrastructure, enhancing public services, and ensuring the growth and well-being of our community.

Some of the larger projects that are planned for FY2027 are:

• Airport Interior Terminal Rehab
• Landfill Cell 6 Expansion
• South Park Pool Renovation
• Rimrock Road Improvements from Clearview Drive to 54th Street
• Monad Road from Daniels to Moore
• Fire Station 1 Remodel

The CIP was presented to Budget and Finance Committee members on Oct. 22, and will be at the regular BFC meeting on Nov. 12.

The FY2027-2031 CIP represents our commitment to sustainable growth, infrastructure development, and ensuring the quality of life for our residents. We believe that this plan is a sound and responsible approach to managing the city's resources and supporting our long-term goals.

The proposed CIP can also be found online, along with other CIP related information at: www.billingsmt.gov/cip

No alternatives have been analyzed as no decisions are made at a work session. Staff will be available to answer questions or provide any additional information

The proposed CIP for the next five years totals $525,075,957 across the City. The initial allocation for FY2027 is $103,515,629. If adopted as presented, this amount will be included in the FY2027 budget. This significant document does not provide the authority to expend funds, nor does it establish rates or charges, but is a planning document to help direct staff on appropriate priorities.

The projects outlined in the CIP assume that rate increases will occur in the future years to be able to fund these projects. Approving the CIP does not constitute rate increases, as those resolutions occur as individual council actions. However, the CIP is built assuming the following rate increases for public works projects:

• Street Maintenance District 2 Assessments = 7% in FY27 and 6% in FY28-FY31. (Approximately $200,000 per percent per year)
• Storm Fees 13% per the storm utility plan for FY27-FY30 and 9% in FY31 (Approximately $135,000 per percent per year)
• Solid Waste 7% per year for both collection and landfill fees. Collection fees are primarily due to the ERP though. (Approximately $290,000 per percent per year)
• Water -FY27 rates are set. FY28 = 7.5% increase, FY29-31 = 6.5% increase (Approximately $382,000 per percent per year)
• Wastewater FY27 rates are set. FY28 = 5%, FY29-FY31 = 3% (Approximately $370,000 per percent per year)