What is the purpose of Capital Improvement Plans (CIP)?

The purpose of Capital Improvement Plans (CIP) is fundamentally to outline a long-term strategy for capital projects. A CIP serves as a crucial planning tool for municipalities, allowing them to systematically address infrastructure needs, prioritize projects, and allocate resources efficiently over an extended period, typically 5 to 10 years or more.

By defining the schedule of capital projects, expected costs, and funding sources, a CIP helps local governments manage and improve public assets such as roads, parks, utilities, and buildings. This strategic planning aids decision-makers in balancing immediate needs with future goals while ensuring that community infrastructure evolves in a sustainable manner.

In contrast, options focused on day-to-day budget management, existing asset assessment, or short-term financing do not capture the comprehensive, future-oriented nature of a CIP, which is designed specifically for addressing significant capital investments rather than routine operational tasks or immediate financing solutions.