A Capital Improvement Plan (Program), or CIP, is a short-range plan, usually four to ten years, which identifies capital projects and equipment purchases, provides a planning schedule and identifies options for financing the plan. Essentially, the plan provides a link between Township, its strategic plan and the Township annual budget.
The CIP provides many benefits including:
- Allows for a systematic evaluation of all potential projects at the same time.
- The ability to stabilize debt and consolidate projects to reduce borrowing costs.
- Serve as a public relations and economic development tool.
- A focus on preserving Township infrastructure while ensuring the efficient use of public funds.
- An opportunity to foster cooperation among departments and an ability to inform other units of government of the entity’s priorities.
The CIP includes the following information:
- A listing of the capital projects or equipment to be purchased.
- The projects ranked in order of preference.
- The plan for financing the projects.
- A timetable for the construction or completion of the project.
- Justification for the project.
- Explanation of expenses for the project.
- MCL 125.3865 Specifies that a CIP is requires and is implemented by the Planning Commission
- Take Inventory of Existing Capital Assets
- Evaluate Previously Approved, Unimplemented or Incomplete Projects
- Assess Financial Capacity
- Solicit, Compile and Evaluate New Project Requests
- Prioritize Projects
- Develop a Financing Plan
- Adopt a Capital Improvements Program
- Budget with Capital Improvements in the Budget
- Monitor and Manage Approved Projects within the CIP
- Update Existing/Ongoing Capital Programs
Kimball Township – Capital Improvement Plan