Page 282 - CityofWataugaAdoptedBudgetFY25

CIP AND CAPITAL PROJECTS FUNDS

Overview

The Capital Improvement Plan (CIP) presents the City’s plan for infrastructure development and
improvements and is evaluated and updated annually by the City’s leadership to determine the
financial availability of resources for projects that will satisfy the City tax rate objectives. The
Capital Improvements Program attempts to identify and plan for all major capital needs and
deals with capital items that are different from those which are covered under the capital outlay
category in each department’s budget and in the Internal Service (Equipment Replacement)
Fund.

Generally, the CIP includes improvements that are relatively expensive, are non-recurring, have
a multi-year useful life, and, like capital outlay items, result in fixed assets.

The goals of the CIP are as follows:

➢ Inform the employees, departments, elected officials and the public of the City’s intent to
invest in its infrastructure and community.
➢ Represents a long-term financial plan and identifies resources or financing strategies that
the City plans to use to fund the plan. The CIP plan does not appropriate money, but
current year forecasted spending is included in the current year budget summaries.
➢ Identifies projects by functionality to ensure a balanced approach to our reinvestment in
the Community.
➢ Establishes priorities and serves as a planning document or blueprint for the investment
in capital infrastructure for short term and long-term projects.

The Process

Each year, the CIP committee meets to update and
evaluate the current projects and identify future
projects. The process includes:

The City’s Capital Project committee receives, and
reviews requests submitted by departments.
Projects are prioritized each year based on various
considerations and criteria. Project costs for
existing projects are updated based on current
economic data. The resulting proposed updated
plan is then presented to Council for consideration,
and adoption.

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