LAYING THE GROUNDWORK TO MAKE A DIFFERENCE 

Budget season is when infrastructure needs get real. A lift station is nearing the end of its service life, a collector street keeps needing patches, and the budget request needs a scope and cost estimate that do not exist yet. Entities that plan ahead make these decisions with data instead of urgency. Projects with a defined scope and a realistic cost estimate are easier to schedule and easier to defend at budget time. At REGA, our civil engineering team works with cities, counties, school districts, and other public owners across Nebraska and the Midwest to build capital plans grounded in real site and asset information. What a Capital Improvement Plan Does A capital improvement plan (CIP) is a multi-year schedule of a public entity's major infrastructure projects, with the cost, timing, and funding source for each. Without one, projects tend to be funded by urgency, meaning whatever failed most recently. With one, an entity can spread costs across budget cycles, coordinate work and see needs coming years before they become emergencies. Building a 5-Year CIP The Government Finance Officers Association (GFOA) recommends capital plans that cover at least three years, and preferably five or more. Five years is a practical fit for most municipalities: long enough to phase major work, short enough that cost estimates stay meaningful. Steps to a successful CIP: Inventory existing assets. Document the location, age, and condition of pavement, storm sewer, water and sanitary systems, and facilities. Define candidate projects. Give each need a scope, a preliminary cost estimate, and a rough schedule. Prioritize. Rank projects against criteria the governing body has agreed on in advance. Phase the work. Spread projects across the five years based on priority and the revenue expected in each year. Adopt and update annually. Costs, conditions, and priorities change, so revisit the plan every budget cycle. Plan for the future . Estimates prepared years before construction should account for inflation, and a figure with no defined scope behind it is hard to defend in a budget hearing. Prioritizing Infrastructure Investments Every entity has more needs than dollars. GFOA suggests evaluating capital requests first on health and safety, service, and asset preservation. Other common criteria include: Asset condition and remaining service life Risk and consequence of failure Capacity needs from growth Cost of delay Opportunities to coordinate with other projects Deferring maintenance can look like savings, but as an asset declines, delayed repair or replacement can raise long-term costs. A condition assessment gives the governing body objective information to work from rather than the loudest complaint. Repeating assessments on a regular cycle also shows trends over time, which helps an entity judge whether current spending keeps pace with aging systems. Connecting the Plan to a Funding Strategy A capital plan is only useful if the money exists to carry it out. GFOA recommends pairing a multi-year capital plan with a financing plan that covers the same period, so the plan stays achievable within expected resources. In practice, that means tying each project to a realistic source, such as local revenue, reserves, debt, or outside funding, and looking at how projects stack up in each budget year. This exposes funding gaps early, while there is still time to adjust the schedule or scope. Outside funding is one source among several, and a project with a defined scope and a supported cost estimate is better positioned to pursue it when an opportunity arises. Getting Projects Ready Before They Reach the Budget A CIP is only as reliable as the information behind it. Cost estimates built on assumptions tend to shift once real site conditions come to light, so early investigation belongs in the planning stage. A topographic survey, drainage analysis, or utility review can reveal conditions that affect scope and cost while a project is still a line in the plan. Our post on site development planning explains why that groundwork matters. Start Planning Before the Budget Is Final Many public entities are building 2027 budgets right now, which makes this a good time to identify the projects that need engineering input before they are locked into a plan. REGA provides civil engineering services for municipal, institutional, commercial, and residential projects. If your organization is developing a capital plan or refreshing an existing one, contact REGA to discuss where to start. Frequently Asked Questions About Capital Improvement Planning What is a capital improvement plan? A multi-year schedule of a public entity's planned infrastructure projects, including estimated costs, timelines, and funding sources. It helps elected officials and staff prioritize needs and plan spending across several budget cycles. How long should a CIP cover? GFOA recommends at least three years, and preferably five or more. Most plans are updated annually so costs, priorities, and asset conditions stay current. What should a CIP include for each project? Each project entry typically includes a scope, estimated cost, timeline, funding source, and priority ranking. Many plans also estimate the ongoing operating and maintenance costs a project will add. Ready to start working on your project? Connect with our team today!