The Capital Improvement Program (CIP) consists of projects that involve the construction of infrastructure and major facilities and the acquisition of large equipment (generally over $30,000). The Capital Improvement Budget differs from the Operating Budget because of its "multi-year" nature, which means that a project can span more than one fiscal year and its budget is active until the project is finished.
The Capital Improvement Program (CIP), which is adopted on a calendar-year basis, details expected resources and planned expenditures over a five-year period, lists projects for each capital improvement fund, and provides descriptions of projects, construction scheduling, and maps. In approving the CIP, Council actually appropriates the funds for the plan year, while approving, in concept, the plan for the future years.
Capital improvement projects are generally financed through debt instruments, including bonds and certificates of obligation, which are paid for with property taxes or revenue from proprietary funds.