Johnston City Council adopts $76.3 million five-year capital improvement plan and authorizes 2027 borrowing

The Johnston City Council voted to adopt Resolution 26‑17, approving the city’s FY2027 capital improvement budget and the FY2027–2031 capital investment plan.

Dave, who presented the plan to the council, said the five‑year CIP has an estimated total cost of about $76,300,000 and noted that projects are defined as those costing at least $10,000 with long life expectancies. He told the council the plan includes a range of funding sources—general obligation bonds, tax‑increment financing bonds, water/sanitary/sewer and stormwater revenue bonds—and that PFM’s analysis recommended structuring some revenue‑supported debt rather than SRF loans based on current market conditions. “This 5 year CIP has a total estimated cost of about $76,300,000,” Dave said.

The presentation highlighted several projects planned for fiscal 2027, including a first debt issuance for phase 1 of the Eastern Myrtle Hay project (borrowing anticipated in July), a set of stormwater projects (Country Ridge, Green Meadows North, Beaver Creek stabilization), rehabilitation of a pump station on 54th Avenue, replacement of a fire engine, an overlay of 86th Street (54th to 62nd), Foxborough Trail replacement in Green Meadows West, and park improvements at Johnston Commons Park that could include additional pickleball courts. Dave also noted the city’s pavement‑management and sidewalk programs would continue.

Council members pressed staff on cash balances and debt capacity. One member asked about a projected contribution shortfall of about $126,000 for the next fiscal year and a later $537,000 figure; Dave responded that the plan shows an ending CIP fund balance of roughly $2,093,000 and that PFM was comfortable with 2027–28 projections but more cautious about later years. Staff explained the city typically maintains roughly one‑twelfth of next year’s debt payment as an operating balance and that the administration would revisit assumptions annually.

Council discussion also covered implementation of streetscape recommendations. A council member asked whether the streetscape study’s suggested 2.5% set‑aside for street trees applies automatically to every construction project; staff said that allocation is not prescriptive in the plan and that tree and landscaping funding would be considered project by project during the planning and design phases.

After discussion, the council closed the public hearing and adopted Resolution 26‑17 by recorded vote. The council’s roll call in favor of the motion was read aloud and the mayor announced the motion passed.