Municipalities are constantly balancing growing to-do lists with tight budgets and limited options for project funding. A long-range capital improvement plan (CIP) can help your community prioritize projects and build a foundation for your annual budget, eliminating the stress of selecting and funding projects ad-hoc.
Benefits of a long-term CIP
Gain additional buy-in from decision makers.
No one likes surprises, especially elected officials who ultimately have to explain those surprises to their constituents. A CIP gives decision makers a long-range view of infrastructure needs, preventing these unwelcome surprises.
Leverage grants more effectively.
Grants can provide much needed funding for municipal projects. However, grant applications often require highly-detailed information on a project, and some grants aren’t offered every year, so planning is essential to make the most of the grant opportunities available to your community.
Save money across departments.
More coordination between municipal departments = more savings (this is especially true for streets and utilities). For example, aligning road replacements with main replacements allows municipalities to maximize the benefits of each dollar spent. After all, if the water utility and street department effectively coordinate their infrastructure planning, it’s far less likely that the water utility will need to dig a trench in a brand-new road to replace an 80-year-old water main that’s just burst.
maximize the Benefits of your CIP
Include all departments.
Doing so prevents waste and allows department heads to share best practices, potential opportunities, and important contacts that could help best achieve each department’s objectives at the lowest cost.
Make it as long-range as possible.
Anticipating needs out 20 years or more positions municipalities to stagger their projects in the most logical fashion. It also allows municipalities to pursue the best financing options available for their needs, rather than going with the fastest option out of necessity while under duress.
Update it regularly.
A CIP needs to be a living document. As needs and opportunities change, so should the CIP. For instance, with more funding available through the federal government, municipalities should consider whether or not it makes sense to begin eligible projects sooner than originally planned.
LEARN MORE
A quality CIP requires additional time and effort in the beginning, but you’ll save money and avoid future headaches by planning now. If you have questions or would like to learn more about how long-range CIPs and financial forecasting can set your municipality up for success, please contact a finance expert at R/M today.
About ThE AUTHOR
EDWARD F. MAXWELL
ECONOMIC CONSULTANT
Ed joined Ruekert & Mielke, Inc. (R/M) in 2017 as a financial analyst. Before joining R/M, he worked in private-sector finance, analyzing capital investments, forecasting expenses and revenue, and crafting department budgets. At R/M, he creates financial solutions for all clients, from municipalities to corporate businesses.
