Red Bank unveils first five-year capital plan; FY27 package would add about 13 cents to property tax, staff says

Red Bank — City staff on the work‑session agenda presented the city’s first formal five‑year Capital Improvements Plan (CIP), a roadmap staff says will steer investments in transportation, parks, facilities and vehicles from fiscal year 2027 through 2031.

Director Slay told commissioners the CIP is intended to move the city from an ad‑hoc, reactive approach to a multi‑year program that aligns projects with funding capacity. “A capital improvements plan, or a CIP for short, is a multi‑year planning and budgeting tool that guides how a city invests in major public infrastructure and long‑term assets,” Slay said during the presentation.

Slay said the CIP relies primarily on general‑fund resources (property taxes, local option sales tax, state shared revenues and business‑related revenues) while continuing to seek grants and other external funding where feasible. The FY27 column in the packet shows a subtotal of $1,177,039; after subtracting current debt service (cited in the packet as $522,827), Slay said new FY27 capital proposed would be about $654,212.

Staff presented the tax trade‑off: using the city’s estimate that one penny of property tax produces about $50,000 in revenue, Slay said covering $654,212 would require approximately 13 cents on the property‑tax rate.

Why it matters

Several high‑priority transportation projects currently under federal or state programs—sidewalk groupings, Ashmore Avenue, Memorial Street and others identified as TIP (Transportation Improvement Program) projects—remain on the list but were struck from immediate FY27 funding because of cash‑flow concerns tied to reimbursement timing. Commissioners argued the projects align with regional MPO and “Safe Streets for All” goals and warned that delaying them could forfeit federal matching funds.

Vice Mayor Barry and other commissioners pressed staff on the decision to omit three TIP projects from near‑term funding. Slay explained that many TIP awards are reimbursement‑based: the city must front local dollars, then wait for federal/state reimbursement, a cash‑flow burden the city cannot reliably absorb for multiple large projects at once. Slay cautioned that design and final costs remain estimates until projects reach the design phase.

Selected projects and estimates

• Contracted/underway transportation projects: resurfacing of Dayton Boulevard (noted as a multi‑year project that began in 2020), ADA upgrades (city match ~20% of project), low‑water bridge replacement (anticipated FY29 completion) and a bicycle boulevard (under contract; state street aid expected to finish remaining work).

• Prioritized but uncontracted TIP projects: sidewalk groupings (coverage north of Browntown, Green Leaf to Fair Street and Morrison Springs), Ashmore Avenue and Memorial sidewalks. Transcript estimates included an aggregate construction cost for four TIP projects of about $6.7 million, with the city’s 20% share estimated at roughly $1.3 million.

• Parks and activation: phase‑one activation of the North Red Bank Park (Hixon parcel) was presented as FY27 work with a $125,000 general‑fund match and a proposed $125,000 match from a Hamilton County grant (phase‑one total $250,000). A phase‑one activation of the former middle‑school site was estimated at $200,000 to provide ADA restroom, parking and utilities to enable festivals and events.

• Vehicles and facilities: FY27 shows equipment purchases (police and a fire vehicle) and a multi‑year horizon for a new fire apparatus flagged for FY32–FY33 down‑payments and long‑term debt in later years.

Deliverables and next steps

Slay said the CIP is a planning document, not yet a stand‑alone capital budget; the CFO is expected to present a freestanding capital budget in the next budget cycle. She also offered to re‑run numbers and provide a revised horizon and cash‑flow scenarios after commissioners requested different funding mixes (for example, removing a Safe Streets application and adding two sidewalk projects back into the near term).

What remained unresolved

Commissioners asked for clearer cost‑sensitivity analysis, the tax impact of restoring the struck TIP projects, and staffing/capacity analysis showing whether the city can manage simultaneous large projects. Staff repeatedly characterized figures as estimates and emphasized that many projects await design, which will refine costs.

The work session moved the item forward for further work; no binding vote to adopt the CIP or to set tax rates was recorded during the work session.