All right, it is 4:30, so I'm gonna go ahead and call our June 15th, 2026 Columbia Pre-Council meeting to order.

We've got um two items on our agenda today.

The first is the fiscal year 27 capital improvement plan overview.

This is the intro into the public hearing that will happen at our next uh July council meeting, and then also be doing some interviews for some of our board and commission's uh vacancies.

As a reminder to council, we agreed with Matthew at the last one that we're gonna save our questions until the end of this one.

Uh so we have time for the interviews.

Um, if we have time, great, you can also submit them beforehand, but I'll try to make them stop at least so we can answer questions.

Maybe this is not the only time we'll get to ask questions on this topic.

Matthew, I'm gonna head it over to you.

Okay, yes.

So this is basically we we have a lot of council people with the new project in general.

So this is something like a overview of the CIP, why we do it.

Uh we'll have a look at a few projects that'll be included in the 27th uh CIP as well.

But this is this is a lot of informational things, and I'll try to get through.

Okay, so what is the capital improvement plan for the city?

So it's a multi-year plan uh that basically lays out the infrastructure facilities, equipment, different things like that for the city.

Um it addresses the challenges of future future and future needs with our infrastructure and different things like that.

Um the budget for the capital improvement projects have dedicated funding that is normally separate from the annual budget.

Um they can be tied together, but for the most part they're separate because it's a longer document.

We'll talk a little bit about that in the next few slides.

So, what are capital improvement projects?

These are things like roads, bridges, uh, utilities has a lot of different capital projects, things that include include drainage, uh, we got parks and break with recreational facilities, uh, also building and certain equipment.

Usually it is uh public works, bigger, larger type of equipment, and uh as well as fire trucks and things development.

Sometimes we even put uh police cards in if there's money available to those are so we get a lot of questions about capital improvement projects versus a capital expense, and so this kind of lays that out.

A capital improvement project is has a budget of 10,000 or more, it takes more than a year to complete.

So that's the most important part of this.

If it's less than a year to complete, it's usually going to be a capital expense, not an actual, not an actual project, even though there is some gray area there as well.

Um it is an investment in long-term stability and infrastructure, is has dedicated funding sources, and we do a life-to-date budgeting method on capital improvement projects.

Uh, life to date means that we put the budget up front, and that budget does not have to be approved each year moving forward.

So let's say uh we have a street project that costs 10 million dollars.

You approve the 10 million dollars up front, and then year to year, you don't have to keep approving that same amount of money.

A capital expense uh is something that can be completed within the same fiscal year.

Uh, these are shorter projects or services.

Uh, there's usually no dedicated funding sources.

Uh it's something that is within the fund budget, and they have year-to-day budget method, which means they're appropriated each year.

So, why do we have a capital improvement plan?

So, this it's important because it connects the uh development, all year comprehensive plans and the financial plans of the city.

Um projects within the CIP are intended to reflect the community's values and goals.

So these are things that are usually set by council, uh and they include existing city citywide long-range plans.

Um most of our projects come before you in things like the the CI capital improvement sales tax, where you look at uh some of these long-term uh financing and the way we do a lot of these long projects, these are things that are down the road most of the time, not things that are happening right now, even though sometimes we can have uh issues that are taken care of at this moment.

So the CIP is a blueprint for the physical evolution of Columbia.

This is where you can see future projects progress through the budget and through the CIP process.

So why is a capital improvement plan important?

It's important for infrastructure integrity.

Um fiscal responsibility is probably the main one, even though it's the last one on this on this list, and that's because you're planning out your projects.

Um these are usually projects that you have to save up money for, or we have to we have to store money away for because they are larger projects.

Uh, a lot of these projects are bonded.

Um it helps us sort of stabilize tax rates uh and the revenue that we receive by putting money away for these projects over a period of time instead of financing them all in one year.

Um has a lot to do with public safety, uh reliable emergency response, uh minor facilities, and we'll maintain transportation as well as economic development.

Um a lot of roads, utilities, parks, these these are all things that attract businesses to our community.

So some of the complications with capital improvement planning, uh just like why we have them, those are also can be some things that become complicated.

And uh planning projects, five to ten years down the road is a very complicated thing for us because you can never get the nail on the head, uh, you just like what we've experienced in the last five years with all the inflation on some of the things that we have purchased is just astronomical.

There's things that we could not have saw or foreseen when these things came up to now, and so construction prices uh change drastically, usually within the five to ten year period.

Uh, and then you also have to think about Missouri's prevailing wage laws, uh, these affect most of public works projects, uh make them more expensive than if they were something that was done in the private sector.

Um, and then we also have deteriorating infrastructure, sort of planning for that maintenance.

Um it's not as reliable to the public, and if the new construction projects and government body for the government bodies uh it takes some planning, and this is something that we have not been the best at in the past, but something that we definitely need to pay attention to.

We need to be able to plan that maintenance for these big projects that we have.

So now we'll go a little bit into the highlights from the 2027 capital improvement.

All right, so we decided to give you a few examples kind of across several departments of projects that you can expect to see in the 2027 budget in the capital improvement project section.

Um, this is not an exhaustive list, and um all of these projects are subject to change up until you see them, but we feel like this is a good representation of some examples of projects that we have.

Um, so the first one, like Matthew mentioned, a lot of times big equipment purchases are an example of a capital project.

Um, the fire department has the initial funding for replacing fire engine one in the 2027 budget.

Um fire trucks are part of the capital improvement plan because they have a three-year build time.

Um so we're expecting to order this new fire engine in 27, but we won't expect it to be delivered until 2030.

Most of the time with these with fire engines specifically, we have to pay up front, and so they'll want the money up front, then they'll start to build the engine.

And sometimes we I don't I don't know if we've had this problem where we've had to add pay something additional down the way changes in costs.

Okay, something's been pretty clear.

Okay.

But I have seen that before where something changes and they ask you for order money.

So another example of equipment is a snow room for the airport.

Um, this is a big, pretty expensive piece of equipment, about 1.4 million dollars.

Um, we do get a 90 10 match from the FAA for this equipment.

Um, and again, we'll order it and it won't arrive until the end of 2027 or possibly even 2028.

An example of a parks project is the MKT bridge replacement.

This is for bridges 9 and 10, I think.

Um, and the primary objective is to replace bridges on the MKT trail that are pretty old, um, and they right now require a lot of maintenance.

So construction for this will start in at the end of 2026, and they expect the project to be complete by the end of 2027.

Um, the funding is mostly park sales tax for this project, and it has been spread out over multiple years, but the last bit of this funding will happen with the 2027 budget.

And we also had um a donation that is going to cover part of the cost of this project.

Um, the 10th and cherry parking garage is another example.

This is an older parking garage built in 1995, um, and we need to address some infrastructure.

This is an example of maintenance that we do, it's not quite as flashy for the public, um, but it is really important.

Um, and we'll begin having expenses on this in FY26 with pre-design and then construction plan will be issued in 2027.

Um, and there will be about 750,000 in enterprise revenue from the parking fund for this project in 27.

Okay.

Hold it.

For water.

We are um this one is to replace one of the alluvial wells that we have for the water department.

Um, this is rehabilitating original and original well, um, which helps to keep our water supply safe and potable for the community, and they expect this project to be completed within 2027.

Um, there's two million dollars in enterprise revenue going to this project, and there was some previous funding that had been put into this project as well.

For stormwater, we wanted to highlight the Braymore drainage project.

Um, this is a reconstruction, and they will expand the existing stormwater system to alleviate street and yard and structure flooding.

Um, this is a fun one because they're gonna start doing easements in 27, and then the project won't be complete until 28.

We expect.

Um, this is an example of a project that even though we put funding here and they're starting the project, it'll take a while to complete partially because there's a political process that goes along with these kinds of projects with easements.

Um, and this is again funded by enterprise revenue, which means that money within the stormwater fund that they've collected will pay for the project.

For a sewer, we're gonna highlight the fifth and wilkes relief sewer.

This is again to expand capacity um limitations and help improve the sewer service for the customers that live in this area of the city.

Um, they're gonna fully fund the project design in 27, but come construction is not scheduled to be completed until 2030.

And again, they're funding this out of their enterprise revenue.

For solid waste, we highlighted the landfill cell seven.

Um, this is an 11 million dollar project.

Only two million of that funding will be in the 27 budget.

The rest of it has already been put into the project, um, and this is to construct a new landfill cell.

Um they are expecting to secure their DNR permitting by 2028, and then actually start building the cell in 2028 or 2029, which won't go online until 2031 or 2033.

Um, once we exhaust the capacity in our existing landfill.

So, how do we identify projects within the CIP?

Um, there's a multiple different ways that we do that.

Some is through master plans or long range plans.

There's a lot of staff input that goes into these.

Um, some are regulatory.

We have citizen and customer requests, and these usually go for when you have your CIP when you look at your model 10 years, uh, but also on some other cases as well, and then we have some things that are brought to us by the council.

So when we are creating the CIP budget, the funds from each of the for each of these projects for the most part are accumulated over several years, and then they're held in restricted accounts until the time comes to either do the project or do the engineering on the project or whatever, whatever you with these accounts.

And then the revenues and expenditures for capital projects do not all occur in the same year.

Most of our big projects you'll you'll start with the engineering, and then the actual project doesn't get off the ground until a year or so later.

So we have a few different ways or a few different funding sources for capital improvement projects.

Taxes and bonds are our two main sources of funds.

And so we have our capital improvement sales tax, uh, county road tax, uh, park sales tax, transportation sales tax, our use taxes that are associated with those transportation and parts and the CIP, and then stormwater rates.

And so for bonds, you have general obligation bonds, revenue bonds, and then SO bonds got left off of this as well.

Um general obligation bonds are usually bonds that have to be uh have to go for vote of the public before they are approved.

Revenue bonds stand on the revenue, whatever fund that is uh submitting the bonds.

So if it was utilities, it will be water and light, it will be the revenue that they generate, uh will be the backing for those bonds, and then SO bonds or special obligation bonds are basically on the the how good that structure is doing.

So sometimes it can be totally utilities, and it wouldn't just be water light of the all the utilities, or it could be uh general general fund or general government, which we look at the general fund, how the general fund is working.

So this is something that we'll talk about a lot in the next few years and the next few months as we start to look at uh the AMI project, the different projects like that within two.

So some other sources or other uh streams of revenue for CIP.

Uh, we have a designated loan fund, and that is basically a fund that was set up in the 70s here in the city to loan funds uh for different projects.

Uh right now, um I think we have three projects.

Three first rental projects, right?

Three parts and records projects.

I think we have capacity for maybe one or two more projects within the designated loan fund currently.

Um there are some developer contributions, development fees, grants, uh public improvement, which usually does sidewalks and those types of things, and then utility grades and fees.

So a little bit about the budget process.

So in January departments update proposal projects for funding for the next fiscal year, and then the budget staff compiles a list of those projects and we review those with the city manager each year.

Um staff presents the capital project to the budget, uh the capital project budget to the city council.

Uh so this is the first part of that uh piece, and then project funding for the upcoming year is approved in conjunction with the fiscal year budget.

So when the 27th budget is approved, this will be approved as well.

Some of our upcoming council dates to deal with the budget.

Um you have three dates in July, which be the 13th through 15th and the 17th, where we'll go over the general fund, uh, enterprise funds, and then uh the complete proposed budget.

We'll look at that on the 17th.

Uh the 20th, we'll have the capital improvement plan public hearing.

And so this is where we'll look take a uh deeper dive into the items that are actually in the 27th capital improvement plan.

Um we'll have the public presentation of the budget on the third, the first budget public hearing on the 17th of August.

On the 8th of September, we'll have the second public hearing, and then the adoption on the of the budget on September 21st.

Okay, okay.

And I realized what Christian's actually saying, went too fast.

Sorry.

We have five.

All right.

Questions for staff, either on the process or I don't know if they're on.

We'll have time obviously at the 20th at that meeting to talk about specific projects, which remember those are just a snapshot of each that was not inclusive of fiscal year 27 projects, right?

Okay.

No, but that's just a snapshot.

We asked all the departments will use more put into the presentation.

Appreciate that.

Questions from council.

Do you want to go ahead, Chris Taylor?

You guys go ahead.

Okay.

Valerie and then Vera, use that microphone if you could be able to go first.

I was just wondering if you could clarify on the piece of how projects end up on the CIP plan.

Um, and they talk about uh citizen input.

How does something go from someone calling the city and saying, hey, my street sometimes floods to a big stormwater project ending up on the CIP budget?

Well, specifically about stormwater, uh that process has evolved.

Uh right now we have a very good ranking system where we rank all the different projects.

Uh most of it is based on uh consequence of failure and likelihood of failure.

Uh and those score higher.

So for example, uh flooding on a arterial or collector street is going to rank higher than flooding on a residential street because it impacts small people.

Uh house flooding, even though it's horrible for the property owners, it only impacts that one property owner, and typically there's one they can do to protect themselves.

Um so there we we've got an entire ranking system for stormwater projects, and uh the we have I hazard the guess there's probably more than a hundred projects we have identified, uh and we've not ranked all of them, but after a time you can tell what project is gonna rank higher than another, generally speaking.

Uh so we feel like we have the worst ones ranked.

Now, sometimes there's a project that's lingered for decades, and if it's not a big project, and we've got a couple hundred thousand dollars, we'll slip that in, you know, uh, just because it's lingered for so long.

So typically in the last few years we've stuck to the rankings, and so if you look at the capital improvement plan for stormwater, it's it's pretty well fleshed out for the next five or ten years.

Um, but the new projects get identified, and if it ranks higher, then we'll try to insert it.

Now, sometimes you know it's not exact as far as how that ranking goes, you know, but it's generally speaking the higher rank projects will build before a lower ranking.

I don't know if that's too much or not enough.

But that was perfect.

I think you okay.

Yeah, actually, that was really helpful.

Um, and probably the most detailed answer I've heard on questions related to that.

Um, and that's something that I appreciate.

Um the ranking that exists.

Um, when was that started?

That program to make our ranking established.

Sure.

So if I really think about it, when the stormwater utility was established in 1994, there was a list of projects uh that was identified, and we have since completed with the quail drive project.

We've since completed all the projects that made sense in that list.

Um, some of those projects were merely to oh, let's connect this ditch up with a pipe, you know.

It really wasn't solving a problem, right?

It was just you know, trying to eliminate an eye SOR, really what people consider an I score, maybe.

Um so we've completed all those projects for sure.

Uh, and then as people call in, as people let us know about uh flooding problems, erosion problems, that sort of thing.

Uh then we look at it and we evaluate if it needs to be a project or not, and then and then we rank it.

Um actually putting numbers to it more recently, it's probably been in the last 10 years that we've been doing that uh ranking system.

But like I said, anytime we get a complaint and we go out and talk to a property owner, and we see that there is seems to be a significant problem, we'll go out.

We do have a lot of projects uh they get moved up quickly because of failing infrastructure, you know.

As soon as that corregated pipe starts failing, then we've got to do something now about that.

So it may not have ranked very high, but because it's failing, all of a sudden it's become a priority.

Um that's that's another way that a project gets moved up very quickly, and so if it's more if it's one of those projects where something's failing, and we need to do more than just replace that uh pipe, like it needs more inlets on the street to provide better service, a better level of service, that becomes an improvement project, and so it takes a little bit longer than the ones where we're just replacing the pipe.

Does this kind of ranking system exist for other projects beyond stored water within utilities?

I guess not it's not as easy to put a number on the other on the other systems.

Uh sewer, I uh we have a master plan and uh the integrated management plan that identifies some projects, um, and then water and electric, both of those are moving towards trying to identify and prioritize projects, trying to look at the whole list of projects and then prioritize them.

Uh, the integrated management plan did a fairly good job of prioritizing our projects for sewer, and then solid waste just doesn't have a whole lot of capital group projects.

I mean the landfill cell that's gonna be a big one.

Yeah, um, most of my questions relate to how the project list for a CIP is formed and not just what we have before us because I think these projects make sense and the way we fund CIP makes sense to me, and it's not the first time I've heard it.

The feedback that I get from a lot of constituents who are I guess very involved is a desire to know how things move around in the CIP, how things make the final list, and what choices were made as to what goes forward and what doesn't.

Um, and short of me as a council member being able to sit down with every department head and say which ones made the cut and which ones didn't and why I don't know that that information is available or visible, and I don't know that the public knows the consideration that goes into that.

Um I really love the ranking strategy that you do have.

Um, and I understand that some projects are more complex than a rank can be given.

Um I guess what I'm hoping to see as we move from now to 2035, um, is I guess a little bit more opportunity to see and understand those choices.

Um you just happen to be sitting in this seat that's not just utilities, right?

And and for utilities, so for sewer and stormwater, well, stormwater has both the ranking plan and the the integrated management plan.

Sewer has integrated management plan.

Um, for electric, we've got the integrated resource plan that'll help us with our our power piece, but we do need to work on what distribution projects and substation projects we also need to be doing, uh, and mostly staff identifies those, and then uh for water.

I know we have a couple different plans, and something I'm working towards is uh having someone help us kind of do similar to what we did with sewer stormwater, but have a more comprehensive plan for water to help prioritize specifically uh you know which storage projects do we do need to do, which maintenance projects need do we need to do, which distribution projects, and how to prioritize all those because it's a lot of different priorities, and then but you have to integrate them based on what funding you have, right?

Yeah, so I'm assuming that integrated management plan that's something that went through that's went through the process already, right?

That's went through the process already, right?

And and we did that with the uh the electric integrated resource plan.

We did uh public improvement process on that, and I would anticipate the same with the water.

Great.

Thanks.

Um maybe when we get to those final work sessions when we get to the CIP work session in the future.

Um maybe that's and I maybe you've already done this because I know that I've already received all of these plans.

Maybe that's a good time to attach or resend those, if that's something that you wanted to do, then that's great.

Um that would be really helpful.

Okay, thanks.

Thank you, Eric.

Any other questions for staff?

Yeah, Christina.

Oh, we can get further back.

Sorry.

Um, one of the questions that came up was when uh Mackie, you mentioned uh you're kind of explaining the different types of uh funding.

So some of it's you know, we're accumulating over time, and other times we have to go up to like get bonds or um all the other things, right?

For the AMI, and if we want to do this at a different time, but I'm wondering if the A why if AMI is a big project, right?

With that kind of dollar amount, is that not something that could go on the CIP or why what was the rationale around not uh going that avenue?

Does that make sense?

So uh so CIP the funding for CIB is not for utilities, that they can't be used at all for the the sales tax, the sales tax yes, yeah.

That's the the capital improvement sales tax.

Yes, that is that is uh public works, public safety.

Okay, uh basically that that is the the money for those two.

So maybe I laid off wrong.

I'm just curious why we couldn't do something like an accumulation to have the funding for AMI over time versus doing a bond.

We could we could um you know, as uh assuming we can continue to do regular rate increases, we could uh save money to do the AMI project that would put it off a number of years, but we could definitely do that.

Okay, and I won't see obviously the project will the project cost will go up, you know, every time we've looked at it, it's gone up, yeah, yeah.

But you know, if you save enough, but ideally that's what you would do to save up enough money.

But maybe to Valerie's point, if we had a framework that could identify those things, like I know I know there's a lot of new department heads, I'm a new person and stuff, and so it's easy to you know look back and say, why wasn't this done or whatever?

Um, but I'm just kind of curious if like we could set that to where it's more like our vision be more of a proactive approach to where we're not having to go out for bonds for that kind of stuff in the future.

But again, it kind of comes down to who's voting for what and allowing those rate fees.

Go ahead.

And so a lot of it we do through master planning, and so you know you anticipate what your needs are for each of these, and you'll put together a master plan and we'll talk about what projects you need for the future, and so from that standpoint is how you start determining what projects you have that you need to kind of address.

We've talked about EMI for probably a good decade.

Right.

Like, man, if we would have started saving, like well, and actually we did.

I mean, we we did have especially on electric side, we had enough money, but uh the recent the last few years uh in the electric industry, just all the expenses with power purchase have gone up so much more than what we you know would have anticipated, and then the inflation costs, both those things uh are just really making it difficult on the idea.

The the there are certain time in bonding as advantage is for city.

And this is one of the we have a rate, we were given the rate uh of 3.1%.

We're getting four point more four to four point one percent on our participants.

So when you have that type of uh clarity with one rates, it's it's easy to to make up that amount that uh you're paying and with the answers you receive and then I guess to kind of let you maybe sorry.

Sorry.

Um Matthew, when's the last time the council like brought a project to you guys to say this is what we want to champion and want to do the CIP.

So we can the field house, yeah.

That's a that's a good one.

That's probably the most recent.

Um the council wanted the field house, but we figured out we put it on the C on the uh CRP form, and then we'll figure out a way to find it.

And I think we got that we secured the button within years.

Yeah, and there were two designated loans that were associated with that, and then the rest of the week before.

I want to ask a billion questions, but I don't want to hog all the time, and it's not necessarily just about that.

Betsy, you had your hand up.

Oh, okay.

Let me see first, Jackie.

Did you have any?

Okay, yeah.

Just a contribution.

Um, I have asked to add a project to master planning before.

Um, and that is in the sidewalk master plan, and we have funds in the COVID.

Sorry, I have asked to add a project to master planning process before.

That's right, it was sidewalk master plan, and it was added.

We have CIP funds that go towards that.

Um that's my two cents, but that is one way to affect the CIP, and I rather like the master planning process that gives it a rank and a prioritization.

So I don't, I don't know, go off on a lark and make up a project that jumps all the rest.

Oh, I'm not gonna average uh yeah, just thinking about the different stages that things move through as they come to CIP.

Any other questions for staff on this?

I think just a process question.

So I was like going back over, like we got a snapshot tonight, right?

Um, so going back over like last year.

So the process is looking at like we set the public hearing this evening, the plan's not attached to this year, but I saw it wouldn't attach to last year's either.

It will be attached to the next council meetings agenda.

That's correct.

Um, and on that we'll have all of the projects on it, but it will not then be formally adopted until we adopt the budget.

Is that correct?

That's correct.

Okay.

Um, if it's possible, if the proposed CIP once the budget, I don't know it will be part of the budget document once that is so we will see it even before that agenda is posted as we're talking about the budget.

Is that correct?

The whole list of the plan.

Okay, just looking ahead to all the public hearings, should we point out to now the public hearings we're setting tonight for the next council meeting and just kind of like thinking of workloads.

So I encourage all of us to maybe once that is out there in our budget to take a look at it just so you have time to absorb what will probably be a very long presentation on that July meeting.

Yeah, yeah, Valerie.

Did you have a follow-up?

Depends on how much time we have, but and I know we have five minutes.

Yeah, yeah, okay.

Um I will never mind.

I will make I will meet with department directors and hopefully have more questions fleshed out for the next CIP.

The next CIP the next meeting, right?

Not the next next year, right?

All right, any other questions for council on this?

No, appreciate it.

I appreciate also the sort of like especially even new or old.

What is the CIP process?

It's always good to touch base on that.

So appreciate the thank you.

All right, so now we're gonna pivot in about uh four minutes, three minutes.

We're gonna start interviewing uh for applicants.