Council reviews FY26 capital plan and budget; water-treatment timing, bridge and 76 Avenue financing draw sustained debate

City staff presented the draft FY26 Capital Improvement Plan and the one-year budget framework, outlining the city's top infrastructural priorities and several major funding questions the council must resolve.

The presentation opened with bridge and intersection projects tied to West Cemetery Road, including right-of-way easement acquisition; staff said federal funding and negotiation with property owners remain active and that cost estimates would be tightened before the March 11 meeting. Staff then summarized Vanderbelt Street improvements at the Union Pacific railroad crossing, citing updated railroad cost estimates and a city share figure (about $475,000 under FY25 numbers) while noting the city's potential share could change if the project is delayed and that federal programs could cover 60% of eligible costs.

A long discussion followed about water-supply planning and the timing for new wells and a treatment plant. Staff said pilot tests for water quality and treatment design are concluding and that design work for the treatment plant is expected to begin around March'May. Drilling for Well 4 was described as planned for late May to mid-June with pump tests and follow-ups in the fall; staff cautioned that Well 4 might not be usable until the treatment plant is built. Cost estimates for wells plus treatment were discussed in a $13'$15 million range; the city has an SRF planning and design loan in place (about $1.27 million referenced) and expects to draw ARPA funds early in construction. Staff flagged that water-rate impacts have not yet been calculated and that SRF terms will require net-revenue thresholds to borrow for construction.

Council debated whether to advance or delay certain park projects, with one councilmember arguing permanent pickleball/tennis courts would serve more residents across age groups and should be prioritized over installing amphitheater restrooms immediately. Library representatives and staff discussed a fundraising approach: the foundation is seeking grants and private donations and asked the city to consider a modest city commitment (the foundation suggested roughly $1 million combined with grants) as part of a partnership, but no dollar commitment was decided.

Council also discussed project sequencing tied to economic development: a developer-led sewer/water main extension (identified as Convergent Energy in the transcript) would be installed by the developer and reimbursed to the city through a Tax Increment Payment (TIP) schedule rather than up-front city bonding. The 76 Avenue road and deceleration project (roughly $4.5 million gross) generated questions about county, Iowa Land, and developer participation; staff recommended consulting a financial advisor to model borrowing and TIP flows before deciding whether to keep the project in the one-year CIP.

Other budget details covered levy rollback impacts, street and road-use tax assumptions, fire department debt and truck replacement timing, technology vendor problems that could require software change or increased clerk staffing, and a phased brine-maker equipment purchase for snow operations ($20,000 starter unit recommended). Multiple councilmembers asked for refined numbers and for staff to return with financing scenarios and tighter cost estimates.

Staff said many CIP numbers remain estimates and would be revised after property-owner meetings, contractor quotes, and financial modeling. Next procedural steps identified: refine CIP numbers, consult with Sphere Financial on bonding scenarios, and return at a future meeting with updated cost and financing information ahead of the tax-statement and formal budget hearings.