The Albion City Council approved a sweeping Capital Improvement Plan (CIP) on Tuesday night after Labor Day, Sept. 2, 2025, outlining more than $70 million in projects over the next five years. The 15-page plan was part of a 188-page agenda for the September 2 meeting, which also included the 60% river restoration design and other major items.
Approval of the CIP is a necessary step to maintain Albion’s Redevelopment Ready Community certification with the Michigan Economic Development Corporation, which keeps the city eligible for state and federal grant opportunities. “This plan doesn’t mean we’re spending all this money today,” Interim City Manager Doug Terry explained. “It positions Albion to be strategic about priorities and ready when funding opportunities come along.”
The largest single costs appear in the utilities section: $18 million earmarked for water treatment plant improvements and $24 million for system-wide upgrades. Together with related water main projects, Albion is considering nearly $50 million in investment for its water infrastructure alone. Funding for those projects would be a mix of USDA loans, state revolving funds, grants, and water fund revenues, ensuring the burden is not carried entirely by the city’s general fund.
Roads and bridges also account for major spending, including $6.39 million for a neighborhood improvement project and $2.5 million for Bemer Street. Terry reminded residents that Albion maintains 51 miles of roads, many of which are due for work. Some road costs are directly tied to water main replacements, while others depend on partnerships with the Michigan Department of Transportation.
Public safety projects in the plan range from $10,000 for police body cameras to $1 million for a new fire engine. City Hall is also included in the CIP, with an overall rehabilitation budget of $1.9 million. A portion of that work — approximately $67,000 for roof and window replacement — has already been contracted, while future phases could utilize grants and other funds to complete the remainder.
Terry cautioned that costs have escalated dramatically since the pandemic, noting that residential construction now averages $300 a square foot while institutional buildings can run closer to $1,000 a square foot.
“We have to be vigilant in how we spend and borrow,” he said, emphasizing that exact timing and financing decisions will be made by the incoming permanent city manager, who will work closely with Public Works and the council.
By approving the CIP, the council effectively gave Albion a roadmap: a list of needs and priorities that will be pursued as outside funds become available.
“This is a wish list and a work plan at the same time,” Terry said. “The important thing is that Albion is prepared.”
See the Overview article about the September 2, 2025, Albion City Council meeting.
This meeting had an agenda of 188 pages.