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County staff outline 2026 capital plan, bonding options for Project Alpha and $2.5M in carryover projects
Summary
Director Chase presented the 2026 capital improvement plan and deferred maintenance strategy; administrators described funding options for Project Alpha including four down‑payment scenarios that could reduce 30‑year interest costs by $5.1M–$20.1M depending on the amount applied, and asked for more pension and cash‑flow details before a final decision.
Grand Traverse County’s facilities director presented the 2026 capital improvement plan (CIP), reviewed 2025 outcomes, and laid out funding options and risks for major upcoming projects including Project Alpha.
Director Chase told the board the county manages roughly 10 major buildings (about 373,000 square feet) and completed 18 of 38 approved 2025 CIP projects, with a total 2025 CIP budget of $2,914,000. Completed projects had a budgeted total of about $1,163,100 and finished roughly $148,000 under those budgets, he said. Chase described efforts to shift from reactive maintenance to a preventative maintenance program and said the county is implementing OpenGov to better capture asset data and work‑order history.
For 2026, Chase outlined projects in carryover ($1,284,700) and new work of about $1,221,000 for a combined CIP roughly $2,505,700. He said that $750,000 from canceled projects, $390,437 in unallocated 2024 funds and reimbursements would cover much of the new request, leaving little net new capital need.
Chase also described grant opportunities and specific projects: a Michigan Economic Development Corporation Revitalization and Placemaking (MEDC RAP) grant of roughly $992,000 for south‑building renovation and restroom expansion (with matching funds), Hall of Justice roof restoration ($320,000), historic courthouse tuckpointing and steps, Vasa Trailhead improvements pending a Michigan Natural Resources Trust Fund decision, and various park wayfinding and Medallie improvements.
On Project Alpha financing, administration presented four options to reduce bond principal and long‑term interest costs by applying county funds now: (1) $3 million downpayment with estimated $5.1M savings over 30 years; (2) $6.5M applied (estimated $11.1M savings); (3) $9.2M including a temporary suspension of a fund‑balance policy (estimated $16M savings); and (4) $12M (complete suspension of the policy and use of surplus funds, estimated $20.1M savings). Administration said it was comfortable with option 4 based on current projections but commissioners asked for a pension stabilization update and a cash‑flow plan before committing to suspending policies or drawing on certain funds.
Commissioners raised questions about deferred projects (jail rebooking/remodel and isolation cells were discussed) and asked how the county would treat canceled projects in future CIP rounds. Several commissioners supported a forthcoming study session and a focused presentation on pension stabilization and long‑range cash‑flow modeling.
Next steps: staff will provide pension‑stabilization modeling and more detailed cash‑flow scenarios at a December study session; the board will revisit which combination of funds to apply to Project Alpha before authorizing final bonding.
