Council debates financing approach for Cap Drive; DOT coordination for Highway 20 discussed

Council received an update on Cap Drive financing and engineering and discussed sequencing engineering and construction. Staff said roughly $120,000 has already been paid toward engineering and that additional engineering or an updated PSA will be provided; presenters suggested engineering could be completed this year to permit bidding for construction next summer. The water-related components may be SRF-eligible, but the roadwork will be financed separately.

Council debated how much local match to offer the DOT for Highway 20 improvements. Members discussed a 50% local contribution as a potential compromise (which might not guarantee placement on DOT lists) versus offering a higher percentage to increase priority; council members noted that a 100% contribution would likely guarantee placement but is impractical. Staff said DOT materials and the city’s position need to be ready by August/September so DOT commissioners can consider the city’s participation in October.

Members discussed debt capacity and levy mechanics in general terms; staff said there is capacity (counsel referenced a figure of roughly $15 million in debt capacity discussed previously) and that options include a debt-service levy or reallocating existing levy components temporarily to accommodate debt service. Council asked staff to invite the presenter (Maggie) or finance staff to a future meeting to clarify levy impacts and next steps before finalizing any match percent. No binding commitment was made; further analysis and a formal recommendation were requested.