The Fairfield City Council reviewed the City’s Capital Improvements Plan for Fiscal Years 2027 through 2031 at its Monday, April 13th meeting, a comprehensive planning document outlining more than $13 million in anticipated projects and purchases in the first year alone and nearly $42 million in planned investments over the full five-year period.
The plan was presented by Public Works Director and City Engineer Melanie Carlson, who noted that the City has completed several significant projects in recent years — including STEP 3, Highway 1 improvements, and the Crow Creek Bridge — while several major projects remain actively underway. Construction of the new fire station is ongoing and scheduled for occupancy by the end of 2026. Infrastructure work at the Sunrise Trail Subdivision is well underway, and design efforts are progressing for the water treatment plant improvements, STEP 4 sanitary sewer improvements, and the Main Street and Burlington Avenue intersection.
What Is the Capital Improvements Plan?
A Capital Improvements Plan, or CIP, is a five-year planning document that identifies the City’s anticipated major projects and purchases, estimates their costs, and outlines potential funding sources. It is not a replacement for the City’s annual budget but rather a supplement to it. The first year of the plan aligns directly with the City’s adopted budget, while subsequent years represent planning-level projections that may change based on updated cost estimates, funding availability, and evolving community priorities. Capital projects often require years of planning, design, and grant coordination before construction begins, which is why the City plans so far ahead.
Fiscal Year 2027 Highlights
The first year of the plan carries a total budgeted amount of approximately $13.4 million across all departments. The largest single expenditure is a $5 million replacement of the City’s Electrodialysis Reversal, or EDR, water treatment system, which was built in 2002 and is due for replacement. Combined with related water infrastructure work including the STEP 4a Libertyville Road water extension at $606,000, Wilson watermain replacement at $363,000, and other water system costs, the Water Department’s total FY27 budget comes to approximately $6.35 million.
The Wastewater Department carries approximately $3.96 million in FY27 spending, with the largest item being $1.8 million for STEP 4a sanitary sewer construction, funded through a State Revolving Fund loan. Ongoing loan payments for previous STEP improvements total approximately $1.9 million annually and will continue for several years.
The Street Department’s FY27 budget totals approximately $1.39 million. The largest item is $962,630 for the replacement of the traffic signals and pedestrian improvements at the Main Street and Burlington Avenue intersection, partially funded through Iowa DOT grant programs. Other street items include in-house street maintenance, crack sealing, Burlington Avenue striping, a new skid steer, swing boom mower, and truck replacement.
Among all other departments, the Airport carries the largest FY27 budget at approximately $1.21 million, including $909,845 for rehabilitation of the airport entrance road and terminal parking lot — largely federally funded — and $300,000 for a runway safety area analysis. The Fire Department’s FY27 budget includes $168,500 in remaining fire station construction costs and $100,000 in reserves being set aside toward future fire truck purchases. The Police Department budgets $80,000 annually for squad car and equipment replacement. Recreation’s FY27 budget includes an indoor pool filter replacement at $32,000, fitness equipment at $18,000, and shade structures at the outdoor pool at $14,000. The Library’s only FY27 item is $2,500 for concrete replacement at the book drop. Parks budgets $12,000 for equipment, and the Carnegie Museum is budgeted $45,000 for HVAC work. The Fairfield Arts and Convention Center carries $50,000 annually for building maintenance throughout the five-year plan.
Fire Truck Purchases on the Horizon
One of the more significant future expenditures flagged in the plan is the replacement of the Fire Department’s aerial truck and brush truck, planned for Fiscal Year 2028 at a combined estimated cost of $2.5 million. The aerial truck, a 2006 Spartan with an 85-foot reach, is approaching the end of its 20-to-25-year service life and must be replaced to maintain the City’s insurance rating for residents. The brush truck is also experiencing significant wear. City staff is currently working with financial advisor Piper Sandler to project a long-term bonding plan to accommodate both vehicles, with $500,000 expected to be in reserve by FY28. Fire trucks often have long lead times for manufacturing and delivery, which is why the plan flags the need to begin the process soon.
Burlington Avenue Identified as Long-Term Priority
The plan specifically identifies Burlington Avenue as a high priority for future bond capacity. The corridor has been under City jurisdiction for nearly 20 years following its transfer from the Iowa DOT, and maintenance needs continue to grow. The CIP includes funding in FY29 and FY30 to evaluate potential improvements, which could include resurfacing, reconfiguration, or full reconstruction. A review of signal warrants and opportunities to incorporate sidewalks and bike lanes is also recommended, as is a detailed safety review of the intersection at 32nd Street and Burlington Avenue. Design funding for Burlington Avenue grows significantly through the plan, reaching $525,000 in FY31 as the City prepares for what is expected to be a major project.
Capital Assets and Unbudgeted Needs
The plan’s capital assets inventory identifies approximately $10.7 million in assets that may need replacement within the next five years. The City’s infrastructure includes 58 miles of streets, 74 miles of sanitary sewer, and 92 miles of water main. Under ideal planning assumptions, roughly one mile of each should be replaced annually to maintain the systems — a benchmark the City acknowledges it will fall well short of in FY27.
Several capital needs remain unbudgeted within the five-year window and are worth noting for the public. These include a Carnegie Museum boiler replacement estimated at $40,000, a Waterworks Park bathroom replacement at approximately $350,000, a Chautauqua Park road project at $200,000, police equipment including cameras and radios at $90,000, a traffic light at Burlington Avenue and Court Street at $300,000, and B Street water tower painting at $300,000. The plan also flags the Roosevelt Building at the Cambridge Sportsplex — built in 1920 and estimated at $2 million to replace — as a long-term concern requiring a structural analysis within the next ten years.
The plan recommends that maintenance analyses and equipment inventories be conducted for City Hall, the Cambridge Sportsplex, and the Fairfield Public Library within the next one to five years to better plan for future needs at those facilities.
Funding Sources
The plan draws on twelve different funding sources, including Local Option Sales Tax, Road Use Tax revenues, Tax Increment Financing from six active Urban Renewal Districts, federal and state grant programs, and revenue debt through USDA and State Revolving Fund loans for water and wastewater projects. Local Option Sales Tax provides approximately $525,000 per year for street-related work and another $525,000 for other community purposes, with 25% directed toward property tax relief.
The Capital Improvements Reserve Fund, or CIRF, was re-established by voters on November 7, 2023, effective July 1, 2024, for a period of 25 years. The City levies 67.5 cents per $1,000 of taxable value to fund the program. While CIRF was originally used primarily for street improvements, it has since expanded to support a wider range of general fund department needs.
CIRF funds are allocated across all five years of the plan as follows: in FY27, $168,500 toward the fire station, $70,000 as a match for the airport entrance road, $30,000 as a match for the airport runway safety area analysis, and $2,500 for concrete replacement at the library book drop; in FY28, $125,000 for the OB Nelson parking lot overlay, $121,000 for streets design and construction, and $25,000 for an indoor pool recirculating pump; in FY29, $111,000 toward street sweeper replacement, $90,000 toward the Lamson Woods Trail Bridge, and $70,000 as partial funding for the library roof; in FY30, $175,000 for library carpet, $50,000 as a reserve for the Recreation Center HVAC, and $50,000 for parks equipment; and in FY31, $75,000 as a match for airport runway lighting, $50,000 toward the Lamson Woods Trail Bridge, $50,000 for a parks truck replacement, and $25,000 for a parks mower.
