What is the primary purpose of a funding plan in relation to capital projects?

The primary purpose of a funding plan in relation to capital projects is to establish a framework for financing identified capital projects. This framework is crucial as it outlines how funds will be procured, ensuring that there is a structured approach to securing the necessary financial resources. A well-developed funding plan addresses various aspects such as potential funding sources (e.g., grants, bonds, taxes), the timing of funding, and the overall financial strategy necessary to support the successful completion of the capital projects.

While partnerships, taxpayer contributions, and assessments of past projects can be important elements in the broader context of project management and finance, they do not capture the core essence of a funding plan's primary role. The focus on establishing a clear financing strategy helps ensure that projects are not only feasible but also sustainable in the long term. This ultimately enables municipalities to carefully consider their financial commitments and obligations in line with their capital improvement agendas.