Planning Commission recommends city capital improvements including lead-line replacements and Box Butte sewer extension

Kaylee James, the city’s director of finance, outlined the proposed 2025–26 capital improvements program to the Planning Commission and said commissioners recommended the report to the City Council.

The program includes set-aside district funds, several street projects, a large sewer and water extension for the Box Butte business development area, and a five‑year lead service line replacement program that uses state revolving funds.

James told the commission the budget reserves $500,000 for miscellaneous paving districts, $500,000 for miscellaneous sewer districts and $400,000 for miscellaneous water districts. She said for 2025–26 the city will use a portion of those district funds to pay infrastructure costs for a Habitat for Humanity development in Marlatt Fourth Subdivision; Habitat will pay 50% up front and the city expects to recapture its share through tax‑increment financing proceeds.

James described two street projects proposed for special sales tax funding. The larger is reconstruction of Avenue A (from 30 First Street to 30 Fifth Street) with an estimated project total of $1,534,100; the planned work includes removal and reconstruction of concrete roadway, a 6‑inch foundation course (or as determined by geotechnical investigation), replacement or minor improvements to water and sewer as needed, storm drainage work, new sidewalks and curb ramps and installation of conduit for new roadway lighting to be wired and fitted by city electrical crews. The second is a reconfiguration and new traffic signal at N Avenue and 40 Fifth Street (near Sunrise Middle School) to add a southbound left‑turn lane, relocate a mid‑block pedestrian‑activated signal and install a new traffic signal at a to‑be‑determined location.

On business‑park infrastructure, James said the Box Butte business development project will extend sewer and water in the area near 30 Ninth Street and Antelope Avenue to open more than 400 acres for development. She said the city has received a $2,600,000 grant from the U.S. Economic Development Administration; the city’s share was described as $650,000 and an approximately $508,000 local match was provided by nearby business owners. In the presentation James referenced a total project cost as $3,300,000 and at one point also referenced $3,700,000; that discrepancy was not resolved in the meeting record.

James also described the five‑year lead service line replacement program for the older central part of the city. The plan calls for about 1,000 service lines replaced over five years (roughly 200 addresses per year). The city secured a $4,000,000 State Revolving Fund loan with a 30‑year term at 0% interest; James said roughly $3,000,000 of that loan has been forgiven and that the city’s net cost over five years is about $1,100,000. She said property owners must sign consent forms before replacements and that the city typically pays to the curb stop while owners are responsible for the portion on private property; out‑of‑pocket costs vary depending on meter location and site conditions.

On smaller items James said the Rolling Hills subdivision retains a $200,000 placeholder for a possible 2‑inch mill and overlay covering about 1.5 center‑line miles; Public Works estimated about 3,015 tons of asphalt for that resurfacing and noted some streets may require full‑depth replacement.

After questions from multiple commissioners about program details and fund rollover rules, the commission voted to recommend approval of the capital improvements report. No member recorded a nay vote in the roll call.

Funding sources and next steps: James identified special sales tax, the EDA grant, SRF loan proceeds and owner/local matches as funding sources discussed in the presentation. The Planning Commission’s action was a recommendation to the City Council; final approvals and any contract awards will be decided by the council and by contract solicitations later in the budget and procurement process.