What does a Capital Improvement Plan (CIP) aim to achieve?

A Capital Improvement Plan (CIP) is a crucial component of effective public finance management, aimed primarily at developing a strategic multi-year funding plan for the acquisition, construction, and improvement of public facilities and infrastructure. This plan helps municipalities prioritize capital projects based on urgency, funding availability, and overall community need, ensuring that resources are allocated effectively over several years.

By focusing on a strategic approach, the CIP aligns capital investment with the broader goals of the community and addresses long-term infrastructure needs. It generally includes detailed information about project costs, timelines, funding sources, and responsible parties, allowing for greater transparency and accountability in how public funds are used.

While maximizing tax revenue from commercial properties, cutting operational costs, and identifying immediate financing needs are important for sound financial management, they are not the primary goals of a Capital Improvement Plan. Instead, the CIP is specifically designed to support long-term planning and investment in critical infrastructure, making option B the most accurate representation of its objectives.