What is a Capital Improvement Plan?
A Capital Improvement Plan (CIP) contains all the individual capital projects, equipment purchases, and major studies for a local government; in conjunction with construction and completion schedules, and in consort with financing plans. The plan provides a working blueprint for sustaining and improving the community’s infrastructures. It coordinates strategic planning, financial capacity, and physical development. A CIP stands at the epicenter of a government’s Planning, Public Works, and Finance departments.
A CIP has two parts – a capital budget and a capital program. The capital budget is the upcoming year’s spending plan for capital items. The capital program is a plan for capital expenditures that extends typically five to ten years beyond the capital budget.