Record-setting employee turnover. Sky-high bids for construction projects. Staggering price increases for supplies such as chemicals for water treatment.

Municipal officials and staff shared the impacts of inflation that they have seen at this year’s League of Municipalities’ Annual Conference. After each person shared, when asked if others were experiencing similar problems, raised hands filled the air.

Attendees shared that they have seen:

Increased salary expectations among employees
More staff turnover
Poaching of staff from one municipality to another
Higher-than-budget bids for construction projects
Significant project delays due to supply-chain issues.

These signs of inflation are everywhere. Inflation is devouring the capacity for municipalities to accomplish what they need to. They are caught between the rock of inflation and the hard place of strict limits on property-tax levy increases.

What can municipalities do?

The first step might seem counterintuitive, but it’s critical to finding solutions. Municipalities need to develop a long-range capital improvement plan (CIP). Coming up with a CIP allows municipalities to take advantage of new funding opportunities as they emerge, such as the Bipartisan Infrastructure Law (BIL), and to maximize existing funding opportunities. CIPs can also spur collaboration across departments, leading to cost savings through greater efficiencies.

The second step is to figure out what will fund each of the projects in the CIP. Municipalities should cast a wide net in their search for funding, especially given the stringent limits on levy increases. Options to consider include the following:

Each funding method brings its own set of pros and cons, so choosing one or more for each project requires understanding both the method and the needs and priorities of the municipality.

The third step is to update the CIP and funding forecast. They’re meant to be living, breathing documents that guide decision making, so they should be refreshed often.

If you would like help with developing a CIP or funding forecast, please contact an expert with RM today.

About the Author

Ryan Amtmann, P.E.
Vice President

Ryan has dedicated more than 25 years to helping municipalities and organizations solve their infrastructure challenges. As a Vice President and Team Leader at Ruekert & Mielke, Inc. (R/M), Ryan serves as a partner and advocate for his clients. His expertise includes site development; business parks; local, state, and federal project funding (including the recent American Rescue Plan Act and the Bipartisan Infrastructure Law); wastewater collection and conveyance system design; storm water management and facility design; water main design; development review; and general municipal consultation and planning.

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