Gallatin council committee forwards revised capital improvement plan to full council, flags possible bonds

The Gallatin City Council Committee voted on Jan. 28, 2025, to send a revised capital improvement plan (CIP) to the full City Council for formal approval. The motion passed with six votes in favor and one abstention.

The CIP, presented by Finance Director Rachel Nichols, lays out multi-year project priorities and funding strategies to manage the city’s growth. "Before the meeting I laid on your desk the revised capital improvement plan," Nichols said, and told the committee the list incorporated members’ stated priorities and aimed to smooth year-to-year funding levels.

Nichols said staff expects the city may need to issue general obligation bonds to fund a number of projects. She noted revenue assumptions built into the plan: "Pre-COVID general fund revenues increased roughly 7% annually. Actually, post COVID, it's been running about 10% annually," she said, adding that rising property values in Gallatin are reflected in revenue projections.

The plan flags several projects that staff believes have potential for grant or Metropolitan Planning Organization (MPO) funding; those items are highlighted for pursuit of external dollars. Councilmembers asked about timing and detail: budget hearings will be scheduled in March, with department heads required to submit budgets by the end of February.

Councilmembers also discussed specific capital items. A council member referenced a preliminary estimate of $8.5 million for replacement of Fire Station 1; Nichols said staff is working with the city’s consultant and an owner’s representative to refine that estimate. Committee members requested more precise cost estimates before final approval.

During discussion, members noted the CIP remains adjustable if opportunities or urgent needs arise. The committee’s motion was to forward the revised CIP to the full council for formal consideration; the motion passed 6–0 with one member abstaining. The committee’s action sends the document into the formal budget process where hearings and further refinements will occur.

The plan’s next steps include the public budget hearings in March and additional cost refinement for major projects. Nichols told the committee staff will continue pursuing grant opportunities and will present the CIP at an upcoming regular council meeting for adoption.

Ending: The committee’s vote does not adopt final funding; it forwards the revised CIP to the full council where formal budget hearings and any financing decisions (including possible bond issues) will be made.