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1. What is a CIP?

The Town’s Capital Improvement Plan represents a guide for maintenance and acquisition of capital assets. It is an important management tool because it helps evaluate the effects of large capital costs on the Town’s operating budget and financial standing in terms of debt burden and capacity.

2. How is funding determined?

Funding availability is determined through the Town’s five-year financial forecast. Estimates of current year and future year funding are based on historic trends and forecasted future economic conditions. Projects are also scheduled to maintain established benchmarks on fund health such as fund balance requirements.

3. How is the CIP prepared?

The CIP is prepared annually based on submissions from the Town’s various departments. Projects are reviewed by the Town Administrator, who evaluates how each project meets Council goals, objectives, and requirements, as well as staff-defined criteria such as improving public safety and increasing organizational efficiency. The Strategic Goals are linked to each project.

4. Is the CIP approved by Council?

Yes. The Town Administrator annually presents a recommended CIP to Town Council. Once Town Council approves the CIP by resolution, a financing strategy is developed by the Administration Office based on the five-year financial forecast. The first year of the plan serves as the coming year’s Capital Budget and includes the appropriations needed for the next fiscal year. The subsequent four years of the plan are planning years and subject to annual appropriation by Town Council.

5. What is usually included in a CIP?

Projects budgeted in the CIP generally include: - Acquisition of land. - Construction of a new facility or an expansion of an existing facility. - A non-recurring rehabilitation or a major repair to all or part of a building or its grounds. This should have a cost exceeding $100,000 and a useful life exceeding 10 years. - Planning, design, or engineering related to a capital improvement or other program.

6. Is capital equipment planned in the CIP?

Capital equipment such as fire apparatus, heavy equipment, and other vehicles are not planned in the CIP process. These expenditures are planned and budgeted through lease agreements during the Operating Budget process.

7. Is the CIP carved in stone?

The CIP is not a static planning tool as it is evaluated annually and adjusted according to Town Council’s goals and financial considerations.