Capital Improvement Plan (CIP)
A multi-year planning document that schedules and prioritizes major infrastructure projects — roads, buildings, utilities, and equipment.
How It Works
Most cities maintain a 5-year or 10-year CIP that identifies needed projects, estimates costs, and identifies funding sources. The CIP connects a city's long-term infrastructure needs to its annual capital budget. Projects in the CIP are typically ranked by urgency, and the first year of the plan is adopted as the annual capital budget. The CIP is updated annually as priorities shift and new needs emerge.
Related Terms
- Capital Budget — The portion of a city budget dedicated to long-term infrastructure investments like buildings, roads, vehicles, and technology systems.
- General Obligation Bond (GO Bond) — A municipal bond backed by the full faith, credit, and taxing power of the city — meaning the city pledges to raise taxes if necessary to repay bondholders.
- Infrastructure — The physical assets that support city operations and resident quality of life — roads, bridges, water mains, sewer systems, buildings, and technology systems.
About This Definition
This definition is part of the CitySpend Municipal Finance Glossary — 59 terms explaining how city governments fund and manage public services. All definitions are written in plain language for taxpayers, journalists, students, and municipal bond investors.