Public Service outlines $10 million local-streets plan, new sidewalk technician and operations changes in FY26 budget

Public Service Director Andy Kilpatrick presented the department's FY26 budget proposal, telling the Lansing City Council the package centers on capital investments in local streets and sidewalks and operational changes intended to improve efficiency.

Kilpatrick said the capital plan includes $10 million for local streets and $1 million for sidewalks. "A mile of local streets costs us about $750,000 and Major Street is about a million and a half," he told the council, and he said the budget shifts some funding from the Major Street fund to Local Street projects using the city's asset-management plan to guide that transfer.

The proposal would add a technician position to handle permit-related tasks tied to sidewalks, complaints about trash in the public right-of-way and coordination with contractors. Kilpatrick said the position is intended to improve coordination and follow-up: currently work orders can sit in a queue without someone who tracks completion. He described the change as a restoration in part of prior staffing dedicated to right-of-way inspection.

Kilpatrick described several other FY26 items: annual fleet replacement (roughly $4 million across city departments), ongoing sanitary-sewer and CSO (combined sewer overflow) work driving sewer-rate increases in the 4–5 percent range, and smaller inflationary increases for trash, recycling and yard-waste services (about 2–4 percent). He said the department is not proposing eliminations or contracting out routine crews in the proposed budget.

On operations and efficiencies, Kilpatrick said wastewater-plant changes have produced energy savings. He cited implemented fixes with estimated annual savings of "a little over $100,000" from reducing electric demand charges, about $10,000 from a repaired pump-valve, and roughly $15,000 from lower-energy backwash operations. He identified potential larger savings from modifying blower systems, noting there would be upfront capital costs to evaluate life-cycle payback.

Kilpatrick said the department is pursuing a design/build request for solar at the wastewater plant, Hardin Street pump station and Geyer Community Center; an independent review and a second study produced similar results and the estimated payback ranges "in the 8 to 12 year range," he said. He added the bid approach separates design from firm installation pricing to avoid inflated contractor bids.

Snow- and ice-control changes include a plan to increase brine production and truck capacity to apply liquid de-icing more precisely. Kilpatrick said greater brine use could reduce rock-salt use by up to about 35 percent and potentially save up to "a hundred thousand dollars per year," but noted capital costs are required to mix and store larger volumes for trucks.

He described solid-waste options the city has studied, including the trade-offs between keeping solid waste collection contracted, expanding in-house services, or hybrid approaches. Kilpatrick said a consultant found the current mixed model is less efficient than either a fully in-house or fully contracted approach; conversion would take years because of vehicle lead times and staffing challenges.

Council members pressed Kilpatrick on staffing and hiring. Kilpatrick said the department has seen about 15 departures in the past year (seven resignations, six retirements and two transfers). He reported vacancies roughly in the 20 percent range in Public Service staffing ("60 or so employees" short across the department, he estimated) and said some roles—especially CDL-eligible positions—are difficult to recruit to at public-sector wages. He acknowledged an open arborist position that has been posted without a hire to date.

Council members asked technical questions about chip-and-fog-seal treatments for streets, contractor bidding for those services, and the department's use of rear-load packers for yard waste. Kilpatrick said chip-and-fog-seal is a cost-effective preservation tool for candidate streets, with revised specifications to reduce early fog-seal problems and the need for additional sweeping.

Discussion and next steps: Kilpatrick said the budget presents requested capital investments and that staffing and the proposed sidewalk/rights-of-way technician are part of the proposed FY26 personnel plan; council members raised questions but no formal vote on those items was taken during the presentation.

Ending: Council thanked Kilpatrick and his team and moved to the next agenda item, the Human Resources and Community Services presentation.