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Item 3.
 
Date: 12/08/2025
Title: FY2027-FY2031 Capital Improvement Plan
Presented by: Andy Zoeller, Finance Director
Department: Finance
Presentation: Yes
Legal Review: No
Project Number: N/A

RECOMMENDATION

Staff recommends that City Council approve the resolution adopting the FY2027-2031 Capital Improvement Plan (CIP) dated November 17, 2025.

BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)

On November 3rd, staff provided City Council with the proposed FY2027-2031 Capital Improvement Plan to City Council. At that work session, Council directed staff to remove the 5th Avenue Corridor and 21st Street Underpass projects from the 5-year plan.
On November 17th work session, Council reviewed the amended plan and provided additional direction, including:
  • Moving 5th Avenue Corridor and 21st Street Underpass projects to the "Future CIP Projects" list (beyond Fy2031), and
  • Increasing the planning-level funding allocation for improvements at Cottonwood Park. 
All Council-directed changes have been incorporated into the attached CIP document dated November 17, 2025. Staff believes this version reflects Council's consensus and recommends its adoption. Council may, of course, offer additional amendments prior to approval.

An interactive map of all CIP projects, as well as the entire plan itself are available online at www.billingsmt.gov/CIP

ALTERNATIVES

City Council may:
  • Approve the CIP as proposed; or,
  • Amend and approve the CIP; or,
  • Decline to adopt the CIP and provide direction to staff.
While adoption of a multi-year CIP is not legally required, it remains a best practice for long-range financial planning and is recommended annually.

FISCAL EFFECTS

Adoption of the CIP does not appropriate funds, set rates, or commit the City to any specific project or expenditure. It serves as a planning tool that informs future budget decisions. 
The current five-year plan anticipates approximately $502.6 millino in captial investment:
 
Fiscal Year Cost (in Millions)
2027 $103.6
2028 $130.3
2029 $113.8
2030 $72.5
2031 $82.4
Total $502.6






To fund the planned programs without reductions, the following average annual rate increases are currently projected (subject to refinement in future rate studies):
Service Estimated Increases
Water 7.5% (28), 6.5% (29-31)
Wastewater 5% (28), 3% (29-31)
Storm 13% (27-30), 9% (31)
Solid Waste 7% annually
Street Maintenance 7% (27), 6% (28-31)

Should Council prefer to lower rate increases in the future, corresponding reductions in the scope or timing of CIP projects would be required.

Attachments