2018-032 Attachment-Comprehensive Plan Update

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PART TWO 2018 COMPREHENSIVE PLAN UPDATE: ACTION ELEMENTS SECTION 6: THE CAPITAL IMPROVEMENTS PROGRAM 1. Introductory Note. For decades in American municipal government, the capital improvements program (CIP) has been an important and basic city financing tool. The CIP is also a major comprehensive planning implementation tool. This section describes the CIP and its functions. 2. Definition of a Capital Improvements Program (CIP). A general definition of a CIP is that it is a multi– year schedule of public physical improvements that sets forth proposed expenditures for systematically constructing, maintaining, upgrading, and replacing a community's physical plant. Historically, the schedule covered a period of five or six years, and currently communities, including Paris, have prepared CIPS with ten year time -frames. The first year of the CIP is typically called the capital budget. It includes the projects that are to be appropriated by the governing body that year. A capital improvement itself can be defined as an item that is larger in size, expensive, and permanent and one that represents an infrequent expenditure for new and expanded facilities or nonrecurring major repair of an existing facility. A capital outlay is a major, nonrecurring expenditure that includes one or more of the following: (A) Any acquisition of land for a public purpose; (B) Any construction of a new facility or an addition to, or extension of, such a facility; (C) A nonrecurring rehabilitation or major repair of all or a part of a building, its ground or a facility, or of equipment, provided that the cost is $50,000 or more and that the improvement will have a useful life of five years or more; (D) Purchase of major equipment with a cost—individually or in total—of $50,000 or more, and which has a useful life of 5 to ten years or more; and (E) Any planning, feasibility, engineering or design study related to an individual capital improvement project or to a program that is implemented through individual capital improvement projects. 3. Purposes of Capital Improvements Programming. The purposes of capital improvement programming are to: (A) Identify present and future needs for physical improvements in a local jurisdiction; (B) Identity the potential costs of requested improvements; (C) Identify the possible sources of revenue to pay for the requested improvements; (D) Provide decision makers with an orderly procedure for setting priorities among requested improvements; (E) Promote coordination of construction programs among various public agencies and private interests; 15