Lancaster officials present first five-year capital improvement plan totaling about $300 million

Lancaster City officials on Tuesday presented the city’s first official five-year capital improvement plan (CIP), outlining 142 projects from 2026 through 2030 with a combined estimated cost of about $299,100,000.

The plan focuses the largest shares of spending on water and sewer infrastructure, which together account for roughly two-thirds of the total, city staff said. "This is the first official 5 year capital improvement plan for the city of Lancaster," Director Campbell said during the presentation.

City staff told council the CIP groups projects by fund and program and identifies 11 funding-source categories, including committed grants, existing bond proceeds, and a recurring reimbursement from sewer partner municipalities. Staff said roughly $50,600,000 in bond funding, about $46,700,000 in committed grants, and about $42,600,000 from sewer partners are already allocated to projects in the plan; the remaining unfunded portion would be addressed through future debt or new grants and was shown in staff materials as approximately $159,200,000 under a conservative assumption that no new grants are secured.

Why it matters: The CIP translates long-term asset needs into a near-term spending plan that will inform the capital budget and bond decisions, and it frames possible impacts on rates and the city’s debt profile. Council members pressed staff on project timing, funding options and on the major risks that will drive future costs.

Key details from the presentation: staff said the CIP includes 39 projects in the general fund, 47 in sewer, 11 in stormwater and 45 in water. The plan lists parks, streets and public-right-of-way upgrades in the general fund and major utility replacements, treatment-plant upgrades and regulatory-driven programs in the enterprise funds. Examples cited for neighborhood-level projects included South End, Joe Jackson, Yule Gans and Reservoir parks and street-safety improvements such as Church Street and South Duke Street.

Staff described several specific drivers that will affect the city’s capital needs: ongoing replacement of aging large-diameter water transmission mains (a multi-decade project with the next phase expected to finish around 2028); planned work to identify and replace lead service lines under the lead-and-copper rule (staff said a larger removal effort is envisioned beginning in 2028); an anticipated anaerobic digester project for biosolids management; and potential PFAS (PFOS/PFOA) remediation or treatment depending on state and federal standards.

"The healthiest part of the Conestoga River ... is just below the outfall from the wastewater treatment plant," said Steve of the Department of Public Works, describing wastewater investments and compliance work. Staff warned that stricter future limits on per- and polyfluoroalkyl substances (PFAS) could require additional funding and possibly federal support.

Funding options and schedule: staff reviewed debt options including general-obligation bonds and PennVEST (state revolving loan) funds for utilities, the timeline for grant awards, and the tradeoffs of using each source. The CIP document and detailed project list will be published to the public by June 30, staff said. Council will hold a capital improvement plan and capital budget hearing on July 22; the first reading of the capital budget ordinance is scheduled for Aug. 12 and the second reading for Sept. 9, ahead of the Home Rule Charter deadline for adoption by Sept. 30.

Council questions and staff responses: Councilor Ahmed asked whether the city could combine funding if grants do not materialize; staff said higher bond amounts would be possible but that the final mix will be revisited annually. Councilor Diaz asked about drought and PFAS testing; staff said the city is out of the drought declaration and that river flows affect PFAS concentrations. Councilor Craig asked for confirmation that the $159.2 million shown as future financing need could be reduced if grants are obtained; staff confirmed that outcome.

What was not decided: The presentation was informational; council did not vote on the CIP or capital budget at the meeting. Staff committed to publish the full project list and to provide periodic progress updates to council during the year.

Ending: Staff said the new CIP tool will help prioritize projects and track funding and debt targets. Council will consider the capital budget ordinance this summer and is scheduled to act before the Sept. 30 Home Rule Charter deadline.