Capital Improvements Program (CIP)
Responsible Staff: Jeff Hayes
Purpose
There are several reasons why a municipality would want to have a Capital Improvements Program (CIP) in place. Some of these include:
To preserve public health and welfare.
Improved communication and coordination between departments.
Avoiding unexpected tax increases.
Developing a fair distribution of capital costs.
The ability to enact Growth Management and Impact Fees.
Description
A CIP is a document or tool that allows a municipality to plan when to make capital expenditures. It is an advisory document developed by the planning board or specially created CIP committee. A CIP helps a town keep from being “surprised” by unexpected expenses and allows the town to keep tax rates at an allowable level, from year to year. New Hampshire statutes require a CIP be updated each year.
The steps to conducting a Capital Improvement Program are:
Step 1 Organize for CIP Process
Step 2 Define Capital Projects
Step 3 Prepare a Fiscal Analysis
Step 4 Review the Master Plan
Step 5 Communicate with departments to identify projects
Step 6 Review proposed capital projects
Step 7 Prepare a 6 year project schedule
Step 8 Adopt and implement the capital improvement program and budget
Costs
The approximate cost to a community for NCC’s assistance is about $5,000, which includes facilitating the meetings and preparing the final report. The cost can be less, if the community chooses to take on more of the work. There is also an opportunity for NCC to match local funds with funding from CDFA. Please inquire for information on matching funds.
Timeframe
The process for completing a CIP usually takes about three or four months.