10 Year Capital Improvements Plan
The Capital Improvements Program (CIP) is a ten-year planning tool used to prioritize major new capital investments made by the City. The CIP is updated annually and CIP focuses primarily on infrastructure and facility needs. On-going maintenance activities and smaller, routine capital expenditures for vehicles and technology expenditures are generally not included as a part of the CIP process, nor are projects that cost less than $50,000.
The CIP identifies a variety of possible funding sources ranging from: operating budgets, state and federal grants, to future voter-approved bond programs. Only the first year of each CIP cycle is adopted as part of the fiscal year's budget process; the nine subsequent years are planning years. The CIP is a long-range plan which should be reviewed in a comprehensive and strategic manner.
Some guidelines as to how CIP funds operate include:
- CIP funds cannot be spent until appropriated by City Council. Annually Council appropriates an Operating and a CIP budget.
- CIP project budgets are multi-year budgets and their appropriations may carry across fiscal years.
- The existing unused CIP funds can generate interest income. This income is shown as revenue to the fund and increases the overall fund balance.
- Interest earned must be appropriated by Council for expenditure.
The CIP includes projects within the following funds:
- Drainage Fund
- Electric Fund
- General Fund (Airport, Community Services (Parks/Facilities), Public Safety, Transportation, Streets)
- Wastewater Fund
- Water Fund
Water, wastewater, drainage and electric utility projects are generally funded through revenues specifically generated by those utility systems. Some projects, especially airport projects, are typically accomplished through outside grants or joint participation agreements with other governmental agencies with limited participation from City funds.
Most CIP projects, due to their sizable cost, require the issuance of bonds - revenue bonds (backed by the revenues of the utility system), general obligation bonds or certificates of obligation (both backed by the property taxes received by the city).