The Capital Improvement Plan (CIP) is the planning mechanism by which the Town Council allocates financial resources to implement long-term goals as defined in the Town’s planning documents including:

The purpose of the CIP is to forecast and match major capital needs and projected revenues over a defined period of time. Capital planning is an important strategic management tool that links community infrastructure needs to the financial capacity of the Town.

The Town of Leland's CIP is a five-year plan for major capital expenditures such as the construction of new transportation infrastructure (roads, sidewalks, multi-use paths, etc.), construction or significant renovation of public facilities (buildings, parks, etc.), expansion or significant renovation of stormwater infrastructure, acquisition of land, or any combination of the above. Capital equipment to support operations is not included, as these items are included in the annual operational budget. Projects eligible for inclusion in the CIP must have an asset value exceeding $500,000 and a useful life of more than three years. Building renovations and improvements can also be included in the CIP. Additionally, all bicycle and pedestrian projects will be part of the CIP, regardless of their cost.

When identifying new projects, long-term priorities are identified based upon Town Council's vision and direction. A new project proposal includes a description of the project, an explanation of how the project implements an established goal, the estimated cost of the project, and an estimate of the recurring costs associated with a completed project (additional staffing needs, additional utility costs, etc). It also includes an analysis of alternative solutions, if any, and a statement on the effect of services and/or programs if the project is not funded. The new project proposals, along with previous year proposals, are collected and prioritized by staff as the CIP to present to Town Council for formal adoption. 

The needs of a municipality can change frequently, leading to deviations from previous CIPs. Shifting demographics, such as population growth or migration, can create new infrastructure demands, prompting changes in project priorities. Economic shifts, whether from recessions or growth, affect available funding, leading to adjustments in planned investments. Technological advancements may present opportunities to adopt more efficient or innovative solutions, altering project scopes. Environmental factors like natural disasters or climate change impacts can redirect resources toward urgent repairs or resilience measures. Legislative changes, such as new safety or environmental regulations, may require modifications to ensure compliance with updated standards. Additionally, community feedback, budget constraints, and supply chain challenges often necessitate reassessments, making it essential for municipalities to stay flexible in their planning processes.

Once adopted by the Town Council, the CIP serves as the Town's policy statement on the need, priority, timing, and funding of future capital projects. However, projects and funding mechanisms are subject to change due to shifting service needs, special financing opportunities, emergency needs, or new directives from the Town Council. Future needs and financial constraints may result in changes in priority over the five-year period, and projects in outward planning years are not guaranteed funding. As a result, the Town revisits and re-establishes the CIP annually, ensuring it reflects the prudent judgment of staff and the Council at the time of adoption, while guiding future decisions by the Town Administration and Council.

The Town of Leland CIP achieves five major objectives as a component of the Town’s budget and financial planning process:

• Helps the Town rationally and intelligently plan for the repair, replacement, and acquisition of capital items that are necessary in providing high-quality services to the citizens of Leland.
• Assists in fiscal planning by forecasting capital demands together with future revenues and expenditures.
• Ensures better coordination, evaluation, and planning of projects to serve the community and its needs.
• Serves, together with the annual budget and other financial plans, as a guide to decision-making for the Town Council, Town Manager, and staff.
• Serves as a systematic and comprehensive analysis of capital needs, increasing the probability of making rational budgetary judgments since improvements are identified, prioritized, and matched to the projected fiscal resources of the Town.

Follow this link to the next section of the manual: CIP Structure