Page 140 - PowerPoint Presentation

CAPITAL IMPROVEMENT PLAN OVERVIEW

The Capital Improvement Plan (CIP) is the Town’s strategy for infrastructure development and
improvement. This includes, road expansion, repairs on publicly owned buildings, and the acquisition
of new water sources. The CIP is a multi-year document that summarizes capital projects for the next
five (5) years. Each project has individual cost estimates and financing methods for improvements.
The CIP establishes the Town’s priorities and serves as a blueprint for investment in capital
infrastructure in the short and long-term.

CAPITAL IMPROVEMENT PLAN PROCESS

IDENTIFYING A NEED
The CIP process begins with identifying capital project needs based on the Town’s balanced
scorecard and comprehensive plan.

FUNDING SOURCES
Once a capital project need is identified, staff analyze potential funding sources.

There are four primary funding sources
for capital projects: WHAT IS A CAPITAL EXPENDITURE?
 Cash Funding (revenue sources Any major non-recurring expenditure or expenditure for
such as sales, hotel/motel and facilities, including additions or major alterations,
property taxes); construction of highways or utility lines, fixed equipment,
 State/Federal funding (public landscaping, or similar expenditures.
grants);
 Private Funding
(developmental impact fees or charitable donations); and
 Bond Issuance.

All funding considerations are based on collaborative discussions with stakeholders and the source of
the revenue.

STAFF ANALYSIS
Projects proposed for the CIP are reviewed, evaluated, and recommended based on the following
criteria:

 The project is within the debt limitations established by state law and within a maximum
local levy debt service established by Town Council.

 The project meets the established useful life criteria to be financed.
PROJECT TYPE GENERAL LIFE FINANCING
Public buildings 40 years 10 year

New road construction 40 years 10 year
Major road rehabilitation 15 years 10 year
Water, sewer & drainage 40 years 20 year
Miscellaneous items Based on asset 10 year
Local sales tax projects 10 year 15 year

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