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Office of the State Comptroller - Local Government & School Accountability

Local Government and School Accountability

Capital Planning and Budgeting

A Tutorial for Local Government Officials

Module 1 - The Capital Improvement Plan

Creating the Capital Improvement Plan

After prioritizing your projects, the planner can prepare the multiyear capital plan. Projects should be arranged in order of priority based on relative urgency and merit. This priority should be established both by year of the plan and within the individual years.

Local governments have some discretion in deciding what to include in their capital plan, such as dollar limits on projects or equipment.

We recommend that the plan include:

  • An inventory of the assets the local government owns
  • Identification of the new capital assets needed
  • The priority in which assets are to be acquired, replaced or repaired
  • A statement of the purpose of each project
  • Information on the impact on the operating budget (e.g., new positions, operation and maintenance savings, reduced or added revenues and expenses)
  • Estimated cost of acquisition, replacement or repair
  • The method by which assets will be financed
  • Estimates of how much it will cost to operate or maintain individual assets once they are acquired.

  Go to sample plan [pdf]

  Next: More on Creating the CIP