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Capital Improvement Projects
The City of Abilene's Capital Improvements Program (CIP) is a multi-year plan used to identify needed capital projects and to coordinate the financing and timing of those projects. Capital expenditures are payments used to acquire assets or improve the life of existing assets. Capital improvements are major construction or acquisition efforts which are non-recurring in nature.
The City of Abilene utilizes a long range financial planning and protection program referred to as the Abilene Improvement and Maintenance System (AIMS), which has been incorporated into its financial policies.
Providing a systematic approach to providing and sustaining of City services to the community, it assures residents of continued progress throughout the years rather than being called upon to make decisions about major deterioration of infrastructure. AIMs allows decisions to be made with a goal of staying one step ahead.
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Frequently Asked Questions
Capital expenditures are payments used to acquire assets or improve the life of existing assets. Capital improvements are major construction or acquisition efforts which are non-recurring in nature.
The City of Abilene's Capital Improvements Program (CIP) is a multi-year plan used to identify needed capital projects and to coordinate the financing and timing of those projects.
CIP projects are long-term investments rather than day-to-day operating expenses. Typical items included infrastructure and assets that are relatively costly ($20,000+) and that are expected to have a long life (15+ years).
Projects can vary widely, but they typically include acquisition, upgrading, or major repair of streets, water lines, sewer lines, drainage facilities, buildings, parks, or similar projects. The program also includes acquisition of major equipment and large vehicles.
Capital projects are identified by departments and submitted to the City Manager for his review. If the City Manager is supportive, Finance is consulted and steps are taken to identify a funding source. The size of the project and available cash on hand determine whether or not it is necessary to issue debt for the project. The Abilene City Council has the ultimate authority whether or not any project exceeding $50,000 is funded.
Factors considered in determining capital items include:
- An expected normal useful life of 2 years or more
- Items with a unit cost of $5,000 or more (including freight and installation)
- Buildings and improvements with a cost of $20,000 or more
Items funded cannot be consumed, unduly altered, or materially reduced in value immediately by use.