Ann Arbor invests in housing, water and infrastructure in updated $1.6B CIP

August 19, 2025

City officials in Ann Arbor, Michigan are planning more than $1.1 billion in capital spending and improvements for the next five years, according to an updated capital improvement plan (CIP) released by the city.

In Ann Arbor’s updated CIP, the city expects to spend more than $860 million on improvements to its water system and city-owned buildings, with an emphasis on updates to affordable housing.

The City Planning Commission is expected to take action on the plan when they convene on Sept. 3, according to a page on the Ann Arbor website.

The planning commission originally approved the CIP on Jan. 7. The city approves a five-year plan at the beginning of each calendar year to identify and prioritize necessary public improvements.

Under the updated plan, approximately $377 million will be spent on city-owned buildings, including $313.2 million on Ann Arbor Housing Commission projects.

Planned work also includes $46 million on new fire stations and fire station renovations and an average of $27.5 million in water system infrastructure replacements during fiscal years 2026 and 2027.

The revised plan identifies 510 projects. The proposed update adds 128 new projects, eliminates or places on hold 61 objects, and lists 68 projects that are either complete or expected to be completed by the end of this year.

Including money already spent and costs beyond 2031, planned improvements are expected to cost a total of $1.61 billion.

Over the next five years, Ann Arbor plans to spend:

  • $377 million on 27 city-owned buildings.
  • $293.5 million on 114 water projects.
  • $129.2 million on 96 street and bridge projects.
  • $93.2 million on 51 sanitary system projects.
  • $66.6 million on 102 stormwater projects.
  • $48.7 million on 29 parks and recreation projects.
  • $31.8 million on 53 active transportation projects.

Photo by Dwight Burdette, CC BY 3.0 https://creativecommons.org/licenses/by/3.0, from Wikimedia Commons

Miles Smith

Miles Smith has more than two decades of communications experience in the public and private sectors, including several years of covering local governments for various daily and weekly print publications. His scope of work includes handling public relations for large private-sector corporations and managing public-facing communications for local governments.

Smith has recently joined the team as a content writer for SPI’s news publications, which include Texas Government Insider, Government Contracting Pipeline and its newest digital product, Government Market News, which launched in September 2023. He graduated from Texas A&M University with a bachelor’s in journalism.

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