CAPITAL IMPROVEMENT PROGRAM OVERVIEW
The Capital Improvement Program (CIP) is a multi-year plan for major capital expenditures, such as the construction,
reconstruction, renovation, or replacement of a public building or facility or surveys and studies leading to such physical
improvements mentioned above. The adoption of the CIP by the City Council is an indication of its support of both the
capital projects that the City intends to pursue and a plan for the anticipated levels of financing needed to fund these
capital projects over the five-year period. The adoption of the CIP is neither a firm commitment to a particular project
nor a limitation to a particular cost. It is a basic tool for prioritizing and scheduling anticipated projects and financing,
a key element in planning and managing future debt service requirements.
A capital improvement project should have a cost greater than $100,000 and a useful life of at least 10 years. Projects
that do not meet the $100,000 and 10-year useful life criteria are considered to be maintenance capital projects, a
summary of which is provided at the end of each CIP program area. Capital projects generally require significant
engineering design and construction, whereas maintenance capital projects (like road paving and sidewalk
replacement) require routine upkeep every few years. These projects are not considered to be part of the Five-Year
Capital Improvement Program.
The cost estimates in the CIP are intended to capture the entire estimated project cost, including as applicable, land
acquisition, design, negotiated agreements, and construction. The total request for each project is evaluated and,
based upon funding, is prioritized to meet the needs of the City. The CIP is updated annually and is subject to change
with each update.
CAPITAL IMPROVEMENT PLANNING & POLICIES
The capital improvement program is the result of a detailed planning process. The purpose is to address the City’s
immediate and long-term capital needs in a conscious effort to best provide services and facilities to the citizens of
Manassas. The process begins in October when departments begin their work on the Department Recommended
Five-Year CIP. In December, the City Manager meets with department staff to discuss their recommended CIP. The
Department Recommended CIP is presented to the Planning Commission in January who provides their
recommendation to the City Manager in February. The purpose of the Planning Commission is to ensure that all
projects are in conformance with the City’s Comprehensive Plan. During this time, the City Manager works closely
with the Budget Office to evaluate the feasibility of funding sources and the impact projects will have on the operating
budget. In March, the City Manager presents the City Manager Proposed Five-Year CIP to the City Council along with
the Proposed Budget. City Council then holds several Budget and CIP work sessions as well as a public hearing
during the months of March and April and adopts the CIP along with the budget in May.
The following tasks related to the capital improvement program are outlined in the City’s Financial Policies (Policy
The City will prioritize all capital improvements in accordance with an adopted capital improvement program.
The City will develop a five-year plan for capital improvements and review the plan annually.
The City will coordinate the development of the capital improvement program along with the development of
the operating budget.
The City will use intergovernmental assistance to finance only those capital improvements that are consistent
with the capital improvement plan and City priorities.
The City will maintain all its assets at a level adequate to protect the City’s capital investment and to minimize
future maintenance and replacement costs.
The City will identify the estimated costs and potential funding sources for each capital project proposal before
it is submitted for approval.
The City will attempt to determine the least costly and most flexible financing method for all capital projects.