Question

Discuss in 2-3 pages the benefits of preparing a multi-year capital improvement plan (CIP) rather than preparing the CIP on an annual basis.

Answer 1

A capital improvement plan or capital improvement program is a short range plan usually four to ten years, which identifies capital projects and equipment purchases, provides a planning schedule and identify options for financing the plan.

The plant provides a link between municipality School district parks and Recreation department and other government local entity and comprehensive and strategic plan and the entities annual budget.

A capital improvement plan is a dynamic community planning and fiscal management tool used to co-ordinate the location timing and financing of capital improvements over a multi year period.

Preparing a multi year plan saves time and money who are great extent.

Public officials in small communities have more than enough work to do why should we consider taking the extra work involving a multi year financial and capital planning. Capital maintenance and improvement planning is sound community management for number of reasons

A capital plan is a multi year financial plan that

List and describe capital projects local government plans to undertake

Indicates how projects will be funded and the projects that effects of the plan on key financial variables

The capital budget is the authorisation of needed spending for the current or first year in the capital plan as a part of municipalities annual budget. Preparing a multi-year capital improvement plan gives a broader approach there are large number of people and communities involved preparing such multi-year plans. It requires lots of efforts gathering expert people and resources for preparing a multi year capital improvement plan. The government calls experts from various locations having great experiences for making a project. The research and development are conducted the levels of authorities keep passing the multi year projects. It requires an sufficient amount of time to prepare the project. When a project is made on multi-year even the economy starts getting used to that project.

A multi year capital plan can help promote good infrastructure management where investment is needed to ensure basic health and safety for citizens

Multicare capital plant is developed a municipality can have greater financial health and sustainability making it easier for them to collaborate on projects with other levels of Government and various public and private stakeholders

Carefully planned infrastructure investment can maximize the economic potential and attractiveness of the municipality

Prudent management of facilities and investment can reduce future operating cost and help avoid higher replacement cost and unforeseen infrastructure failures in the future

Multi year capital plans should become a integral component of muncipalities budgeting process. The plan often becomes a municipality is annual budget report and therefore the capital plants would need to be updated on annual basis. This plans should become regular activities for municipalities to plan for future capital projects and to be more sustainable. A properly prepared capital plan is essential to the Future financial health of the municipality with continuous delivery of services to citizens and businesses.

A multi-year capital plan create orderly and systematic planning for acquisition, financing and use of capital improvement.

An organised plant provides for a more effective evaluation of alternatives and solutions that the crisis Decision Process.

The plan allows for more in depth consideration of hidden cost which affect the operating budget

A plan can provide first stable payments and tax rates over a period of time

A good plan will promote better planning installation or construction since the acquisition will be before the crisis time.