Finance committee rejects 2027–31 capital improvement budget after borrowing concerns

Deputy Director DeGeer told the committee the proposed 2027–2031 capital improvement plan totals just over $59 million, with 23% of the 2027 plan proposed to be funded by new debt. He told members the percent equates to about $13,907,566 in new borrowing for 2027.

Council members challenged the scale of new borrowing and asked for a line-by-line reexamination. Council member Janssen said the projected increase in the 2028 operating levy from the 2027 borrowing “would increase the 2028 debt service expenses by $250,000,” and said current borrowing costs make the plan harder to justify than during lower-rate periods.

The meeting included a procedural amendment to equipment requests — a departmental operations representative explained why a shift from two tandems and two singles to one tandem and three single-axle trucks would yield more uniform trucks and reduce the need to alter an individual vehicle because single-axle prices had come in higher than originally projected (one single-axle came in at about $302,000). That amendment passed 4–2.

Despite the amendment and separate additions (see related stories on Huska Park and library parking), several members said they could not support the CIP as presented. The resolution to refer the 2027–2031 CIP to council failed on the committee vote, 2–4.

The committee is expected to return to particular projects and to the borrowing plan before any council-level action; staff and finance said they will provide more detailed breakdowns and options for reducing new debt.