What is a capital improvement plan (CIP)?

A capital improvement plan (CIP) is a multi-year framework that outlines anticipated capital expenditures for new or renovated public facilities within a specified budgeting period. This plan typically includes not only the identification of projects but also estimates regarding the costs, funding sources, and timelines for completion. By providing a structured approach to planning for significant capital investments, the CIP plays a critical role in ensuring that a government or organization can strategically allocate financial resources to meet long-term infrastructure and facility needs.

The CIP aids in prioritizing projects based on community needs, funding availability, and projected impacts. It acts as a guide for decision-makers to understand the necessary investments over multiple fiscal years, allowing for systematic planning and management of capital resources to enhance public service delivery.

While increasing revenue, providing temporary funding solutions, or detailing annual budgets for programs are essential elements of financial management, they do not encapsulate the broader and structured approach that a capital improvement plan embodies. The focus of a CIP is specifically on capital assets and long-term projects rather than operational budgets or immediate financial strategies.