CIP Template
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1
CIP Good Practices Version 1.0 18 March 2009
Triangle J Council of Governments Development & Infrastructure Partnership
Capital Improvement Budgets are long-term fi-
nancial plans. The purpose of these plans is to fore-
cast capital improvement expenditures and meas-
ure their impacts on future budgets. These expendi-
tures are designed to enable counties and commu-
nities to provide equal or better service over an ex-
tended period of time. Capital Improvements tend
to be large ticket items that are multi-year invest-
ments. GASB34 defines capital assets “as tangible
and intangible assets used in operations with useful
lives longer than one reporting period and a mini-
mum cost based on approved capitalization levels.”
Capital Budgets may be based upon existing annual
budgets, or they may be used as templates to create
the Annual Budget, as well as the Comprehensive
Annual Financial Reports. The intent of this report
is to provide a basic template for organizations that
either do not currently produce a capital improve-
ments budget or would like to improve their budg-
eting process.
Organizations that do not currently have a CIP
need to evaluate producing the three financial re-
ports,(the comprehensive annual financial report,
the annual budget, and the CIP, ) in a standard
process. Data classifications from one report need
to be consistent with the data classifications in the
other two reports. The Development and Infrastruc-
ture Partnership has identified fourteen classifica-
tions for capital improvement programs. The ma-
jority of the CIPs reviewed have similar classifica-
tions.
The fourteen classifications identified by the Tri-
angle J Development and Infrastructure Partner-
ship are:
1. Schools
2. Transportation
3. Parks and Open space
4. Arts and Culture
5. Water
6. Wastewater
7. Stormwater
8. Solid Waste
9. Justice & Public Protection
10. IT & Communications
11. General Services
12. Housing
13. Health and Human Services
14. Other
When drafting a new CIP, organizations need to
begin building financial documents based upon
these fourteen classifications based on the depart-
ments* your organization currently has and:
Forecast capital spending for either five or ten
years; and
Predict future revenue streams for these capital
expenditures.
Long-range financial documents may not be able
to precisely reflect the future source of funds or
costs of a project. The purpose of identifying fund-
ing sources is to approximate future tax rates,
bonds, or reserve needed to complete the capital
improvements.
If programs are projected less than five years in
advance funding may be difficult to procure. If pro-
grams are projected out further than ten years costs
and revenues become, at best, educated guesses.
There are precedents for classifying funds for pro-
jects as unauthorized bonds or unfunded projects,
especially projects that are timed towards the far
end of the timetable. If revenue streams cannot be
identified, a separate unfunded CIP section needs to
be established. Projected costs of the capital im-
provements, including inflation, need to be clearly
quantified and qualified.
* Note: ‘Departments’ and ‘classifications’ will be
used interchangeably throughout this document.
(Continued on page 2)
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CIP Good Practices Version 1.0 18 March 2009
Triangle J Council of Governments Development & Infrastructure Partnership
The reasons to standardize the creation of financial
reports are straightforward. Data from the Capital Im-
provement Program can be migrated into the Annual
Budget and then summarized in the subsequent year‟s
Comprehensive Annual Financial report. When data is
entered in a standardized manner, using standardized
project identifiers, reports may be updated without re-
inventing the process. Finally, a standardized product
is beneficial to the reader, especially those who may
read the same financial documents year in and year
out. There are instances where the name of a project, a
school or a park, may change during the period from
concept and design to finished project. Where names
of projects change a translation tables is necessary. The
unique project code should not change( e.g. PR2008-
12 for a Parks and Recreation Project added to the CIP
during the 2008 CIP Budget, one of 12 Parks and Rec-
reation Projects identified that year.)
Successful CIPs will reflect the mission and vision of
the organization. The mission is why the organization
exists. The vision is where the organization is heading.
Capital Improvement Programs can be seen as Goals
statements for the organization. Goals have time lines
and costs associated with them. The process of creat-
ing a vision or a mission statement is outside the scope
of this report.
The process of creating the CIP document can be as
simple as using Excel or one of a number of programs
designed for creating CIPs such as CIPAccess/CIPAce,
PlanIt!, CIPS, CIPvizion, orTeamBudget Capital.
When the initial template is designed in Excel or a
similar product:
1. Determine if the capital improvements are single-
year or multi-year projects.
2. Create a Template for the Fourteen Classifications,
with Funding Sources and Maintenance /
Development Costs (Steps 1 and 2, Page 3)
3. Create 14 pages, representing the 14 categories
(Step 3, page 4)
4.Detail the upfront capital costs
5. Project the maintenance and development costs
6. Allocate the staff costs, where appropriate.
7. Using the following template, identify the source(s)
of funds needed for each project/program item – not
all communities will have all options available:
General Funds
Reserve Funds
Approved Bonds (Bonds, 2/3 bonds, revenue
bonds, utility bonds.)
Certificates of Participation
Impact Fees
Special Funds (Powell Funds, Lottery Proceeds,
Grants)
Bonds – Unapproved
Funds – Unapproved
7. Create a summary page for each department,
totaling the revenue and expenses of the individual
projects. (Page 5, Step 4)
8. Link each cell from the project level to the next
level up in the document - the Department Level.
(e.g. Schools B2 ='School Project #1'!B2) Total Cost
for Lake Church Elementary 2009-09.
9. Link each Department Level to the Summary by
Category Page (eg. 14 Categories Schools B2 =
Schools!B16 ) Total for all school projects for 2008-
09.
10. Link each of the Funding Source Cells and the
Maintenance/Development Cost cells using the same
process.
11. Compile a summary page for the organization,
totaling the expenditures and the funding sources for
all departments, including those that operate outside
of the General Fund, an example being Utilities.
12. Enter the current tax base and projected tax bases
for subsequent years. Use your current tax rate to
(Continued on page 4)
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CIP Good Practices Version 1.0 18 March 2009
Triangle J Council of Governments Development & Infrastructure Partnership
Step 1: Rename “Sheet1” to “14 Categories” by right-clicking on the “sheet1” tab at the bottom of the worksheet, selecting „rename‟ and
changing the text when the cursor goes to a bar on that tab.
Step 2: Recreate the table below with whichever items you require or will require in your CIPs:
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CIP Good Practices Version 1.0 18 March 2009
Triangle J Council of Governments Development & Infrastructure Partnership
calculate projected revenue.
13. Calculate the amount of tax one penny would pro-
duce and calculate the tax rate impact for the individ-
ual projects.
14. Using the same process as used for the funding
sources, and project costs, reference the individual
penny rates and tax rate impacts forward to the cate-
gory/department summary page, and move that total
forward to the overall summary page.
Step 3: For each of the 14 items under “Category” in Step 2, create another worksheet/tab.
(Continued on page 7)
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CIP Good Practices Version 1.0 18 March 2009
Triangle J Council of Governments Development & Infrastructure Partnership
Step 4: In each of these category worksheets, create the following table:
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CIP Good Practices Version 1.0 18 March 2009
Triangle J Council of Governments Development & Infrastructure Partnership
Step 5: For each project you list in each category sheet, create a separate sheet with the following table:
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CIP Good Practices Version 1.0 18 March 2009
Triangle J Council of Governments Development & Infrastructure Partnership
Data from each project is best if it flows through the
spreadsheets such that lines and columns on
successive pages are in complete alignment.
Special care must be taken when classifying
projects that may receive bond funds to ensure that
the expenditures do not commingle different
approved bond categories.
If the project(s) identified are long-term or
recurring investments other items must be identified
at the :
Reserve Balances
Reserve Contributions
Revenue Sources (Special Funds, Grants,
Fees, Special Sales tax, or Impact Fees, Bonds)
Capital Budgets or Capital Improvement plans need
to identify:
Property Values (and the date of the last
revaluation)
The current tax rate
The Penny Rate (one cent of property tax on
property values)
The collection rate
The image below (Figure 1) was found in the
Chatham County Budget for 2007-08. It provides a
quick snapshot of the Budget. A similar image could
be produced for a CIP.
Referencing the need for future funds or bonds as
unapproved, as previously noted, is potentially
problematic, unless a discussion of future bonds or
future revenue streams is broached.
Project pages are improved through the addition of
geographic locations of the project. If your
organization uses GIS, creating a shapefile or a
geodatabase of projects to track potential projects ,
data tables can be generated from the “dbf” files
associated with the layers. Fields that should be
Figure 1: Budget snapshot from Chatham County Budget
(Continued on page 8)
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CIP Good Practices Version 1.0 18 March 2009
Triangle J Council of Governments Development & Infrastructure Partnership
included in the shapefiles or database layers are:
Project Identifier
Department
Name
Alias
Phase
Physical Location/Address
Type of Project
Date added to CIP
Year for Project to Occur/start
Year Completed
Funding Source(s)
Bond Package/Classification
Cost (Projected)
Cost (Actual)
See the project page provided by the Town of Hills-
borough (Page 9, Figure 2).
SUMMARY
Capital Improvement Programs are long-range fiscal
planning documents that are connected to prolonged
physical improvements or capital intensive in nature.
The multi-year, multi-project nature of the CIP offers
flexibility in funding. CIPs, when standardized, can aid
in the development of Annual Budgets and Compre-
hensive Annual Financial Reports. CIPs can also aid in
the planning of future bond needs or project changes
in either future tax rates or service levels. Standardiza-
tion of the CIP process will be beneficial to the fiscal
and physical planning of an organization. The stan-
dardization of the CIP process can be done using finan-
cial workbook software such as Excel, or through any
number of CIP software programs. Classifying the data
according to the fourteen categories delineated by the
Development and Infrastructure partnership will aid
organizations that wish to make peer-to-peer compari-
sons or organizations that wish to streamline the finan-
cial planning process.
If your organization does not currently provide
wastewater, sewer, or water services at this time, for
example, it may not seem to be necessary to itemize
these classifications or departments. If your organiza-
tion is looking to add these services, or any of the other
eleven services, during the next five to ten years, then
it will be beneficial to consider these items within the
context of the current CIP and future CIPs.
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CIP Good Practices Version 1.0 18 March 2009
Triangle J Council of Governments Development & Infrastructure Partnership
Figure 2: Sample project page from Town of Hillsborough (photo added for example)