What Does Capital Improvement Plan (CIP) Mean?
A capital improvement plan is a governmental planning tool used to outline projects and and plan purchases over a limited period of time. It allows for the systematic evaluation of proposals and focuses attention on projects required capital investment. Local and regional governments often use trenchless technology for these projects.
Trenchlesspedia Explains Capital Improvement Plan (CIP)
Financial planning is integral to governing. A capital improvement plan is an essential tool for identifying where money needs to be spent and how it can be best applied. By committing money to specific purposes and agreeing upon careful plans for its dispersal, governments are able to demonstrate to their constituents how taxpayer income is used.
A capital improvement plan also makes it possible to consolidate debt related to projects. It facilitates cooperation among departments and gives the government an effective public relations tool. The Government Finance Officers Association suggests several steps in the process, including defining the scope, determining participants, and managing the project until closeout.