Shelbyville staff reviews multimillion-dollar capital projects, grant matches and future budget needs

City of Shelbyville staff presented an update on the city’s major capital and development projects, detailing current cost estimates, funding sources and anticipated schedules for a set of projects that will affect budgets through fiscal year 2026 and beyond.

The largest items discussed included flood-pump replacements, Fairfield Pike improvements, the River Overlook project, multiple sidewalk projects, an industrial-access road for Project Cardinal (Duckson), soccer fields at HB Griffin Park, airport capital projects, and the Riverview District redevelopment. Staff grouped the updates to show which costs are covered by grants and where local matches or additional funding will be needed.

Why it matters: several projects rely on state or federal grant funds that require local matches and have multi-year timelines. Council members and staff said rising material and construction costs and the timing of grant awards will affect how much local funding the city must commit in coming budgets.

Selected project highlights and figures presented at the meeting: - Flood pumps: the flood-pump procurement came in approximately $870,000 under bid; staff expect an installation bid opening in late October–November and construction to start in January 2026 with completion about August 2026. The FY budget included $4,395,000 (of which $2,400,000 was noted as available toward installation/rehab), and ARP funds have been reallocated to support the project. - Fairfield Pike: the project is in right-of-way phase (estimated right-of-way cost: $1,000,000). Staff said the state portion at present is roughly $3.5 million, leaving a local match near $1.7 million after prior local spending; the city typically receives about $300,000 per year in small-cities funding that will reduce the near-term local burden but the project’s construction estimate and inflation risks remain. - River Overlook: originally estimated at $1.5 million, current construction estimates are about $2.7 million and the total project estimate is about $3.0 million. Staff said consultants are pursuing additional grants (e.g., carbon-reduction and transportation alternative funds) that could significantly reduce the local share; the city has paid approximately $215,000 to date and budgeted $300,000 this year. - Madison Street sidewalks: award of a multimodal access grant (about $1.1 million) with a 90/10 match; project is in the NEPA/environmental phase and local match funding was budgeted for FY26. - Deerie Street sidewalks: a Community Development Block Grant (CDBG) award (December 2023) of $550,000 with a 14% local match; the local match is approximately $104,007.62 and the project is in construction and administered by the South Central Tennessee Development District. - SIA Road (Project Cardinal/Duckson): the state contract requires shared right-of-way/utilities costs; staff advanced a partial payment and noted that TDOT will likely resume major work in FY27, so no additional budget request this year. - HB Griffin Park soccer fields: the city received a Land and Community Park (LPRF) grant for $2.5 million and committed matching property (valued at $1.73 million) plus $770,000 cash; staff said final plans and grading are expected by mid-September with a possible groundbreaking in October and a 12–18 month construction timeline. - Airport projects: a $6.0 million grant requires a $600,000 local match (total ~$6.6 million) for a runway run-up area, midfield taxiway, corporate hangar, terminal remodel and parking; design work for some elements is complete and projects covered by the grant must be under contract by June 30 (next year). - Riverview District: property acquisitions and utility relocations are underway; council previously appropriated funds and staff said $641,000 of last year’s $750,000 appropriation has been spent to date, with additional utility payments and contingency funding still needed.

Budget and debt context: staff reported capital outlay notes declining to about $410,000 as of June 30, with only $55,000 expected to remain at the end of next fiscal year. Sales-tax receipts were running about 7.55% above estimates through May, producing roughly $471,000 in additional revenue so far; staff projected FY26 capital spending (not counting a $250,000 hotel-motel allocation) of about $1.4 million added for the projects presented and total near-term obligations after FY26 of roughly $4.2 million for projects discussed.

What staff recommended: continue to pursue grant funding where possible, prepare budget amendments for rolled-over or unfinished work, and return to the council with any necessary amendments or grant acceptance/resolution items. Council members asked for follow-up items including site-layout proposals for the HB Griffin soccer complex, clarity on sidewalk design (light poles and accessibility), documentation of South Central Tennessee Development District administrative fees, and detailed schedules tied to grant-award timetables.

Staff said they will bring back required budget amendments, contract amendments and grant resolutions to the council as those items are finalized.