Capital Improvement Plan

2023 Budget Story - Homepage Link

Introduction

The City plans for capital maintenance and improvements by preparing a capital improvement plan (CIP). The CIP represents a framework for planning the preservation and expansion of capital including equipment, facilities, and infrastructure. It sets forth the estimated schedule, timing, and details of specific improvements by year, together with the estimated cost, the need for the improvement, and sources of revenue to pay for the improvement. The identified improvements reflect City policies for growth, maintenance, and development.

The City Council considers the following when preparing the CIP for each project and for the overall plan:

The condition of the City’s infrastructure including the projected need for repair or replacement;
The likely demand for the improvement;
The estimated cost of the improvement;
The available public resources;
The level of overlapping debt in the City;
The relative benefits and costs of alternative uses of the funds;
Operating cost of the proposed improvement;
Alternatives for providing services most efficiently through shared facilities with other cities or local government units.

The Capital Improvement Levy information can be found here.

CIP as a Planning Tool

The CIP is a planning document intended to assist policy makers and staff to plan for major capital improvement, renewal, and replacement expenditures. As a planning document, the CIP does not bind the City to the anticipated expenditures in the projected years. The CIP is not a budget, nor is it an authorization to expend funds. The authorization of the expenditures occurs through City Council action and in adoption of the annual budget.

With growth, the need for services will continue to increase in the City. At the same time, the costs of vehicles, equipment, and infrastructure are expected to increase. The CIP formalizes a process in which future projects and outlays can be identified and prioritized. It is intended to provide a realistic projection of future capital expenditures necessary to meet the anticipated needs of the community.

The CIP can help assure:

A systematic approach to planning and initiating capital projects affording the opportunity to plan the location, timing and financing of needed public improvements;
The development of a realistic program of capital spending within the City’s projected fiscal capability to finance such projects, avoiding sharp change in the tax levy;
The coordination of public and private improvement projects permitting adequate time for design and engineering to eliminate duplication of effort and expense;
The expenditure of public funds that are compatible with the City’s adopted Comprehensive Plan;
That the public is kept informed of the proposed future projects and expenditures;
That private investors are aware of the City’s long-range development program so that they may guide their development in a way that is compatible with the City’s program;
Aid in achieving federal, state and/or county participation by providing the necessary planning and lead time for successful application for grants.