Staff will present the FY2028 - FY2032 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 at a regular City Council meeting on November 23 for amendment and adoption.

The City of Billings FY2028-FY2032 Capital Improvement Plan (CIP) outlines the city's multi-year planning framework for funding and constructing public infrastructure investments exceeding $50,000.

The CIP serves as a bridge between long-range master planning and annual budgetary appropriations. It identifies major municipal capital needs across transportation, utility systems, public facilities, and neighborhood infrastructure, balancing necessary asset replacement and expansions against projected funding availability and rate impacts.

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 $491 million across multiple city departments. The initial allocation for FY2028 amounts to $81 million. If adopted as presented, this amount would be included in the FY2028 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 FY2028 are:

• Airport Terminal Interior
• Fire Station 1 Remodel & Improvements at Station 5
• Evidence Facility Lot Expansion
• Poly Vista Park Splash Pad
• Hawthorne Park Wading Pool
• Hougans Slough Improvements
• Road Improvements on Grand, Wicks, and Elysian

The CIP was presented to the Budget and Finance Committee on October 21, and will be discussed again at the Nov 18 BFC meeting.

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

The proposed CIP for the next 5 years totals $491,026,288 across the City. The initial allocation for FY2028 is $81,051,887. This plan 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 priorities.

The projects outlined in the CIP assume that rate increases will occur in the future to be able to fund the projects. Resolutions setting future rates will occur as future individual council actions. However, the CIP is built assuming the following estimated rate increases for public works projects:

• Street Maintenance District 2 - 4%
• Storm Fees - 13% for FY28-FY30, 9% in FY31, and 4% FY32 (per the Storm Utility Plan)
• Solid Waste - 4.5% per year for collections, landfill - 10% per year
• Water - 3.5%
• Wastewater - 2%

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