Orange County NC Website
Browse       Search
Preface <br /> The Capital Investment Plan (CIP) has been redesigned to enhance communication to our readers.The <br /> CIP is a five-year plan which describes each County project that is to be funded during the planning <br /> period.The following definitions for a capital asset and a capital project differentiate the two types of <br /> capital items and the treatment of each during the budget process. <br /> Definition of a Capital Asset <br /> An item with a value exceeding$5,000 and a useful life of one year or greater;includes automobiles, <br /> equipment and furniture. <br /> Definition of a Capital Project <br /> A project with an estimated cost exceeding$100,000 or more and useful life exceeding ten years or <br /> greater. Capital projects include the construction,purchase, or major renovation of buildings,parks, <br /> utility systems, or other structures and sites;and purchase of land and major landscaping projects. <br /> County projects meeting the above definition are included in the CIP document rather than the <br /> Operating Budget. <br /> What is important to know when reviewing the Capital Investment Plan (CIP)? <br /> • The CIP represents a long-range planning resource, and only the dollars in the first year of the <br /> plan are adopted by the Board of County Commissioners. <br /> • The CIP is a planning document to be used as a companion document to the Operating Budget <br /> document. <br /> • The CIP provides a comprehensive perspective to capital planning and includes projects that are <br /> funded from all available funding sources including bond proceeds, grants, or pay-as-you-go <br /> (cash). <br /> • The CIP projects are subject to re-prioritization annually as part of funding sources review and <br /> conformity to the County debt affordability policy, including debt service limited to 15%of <br /> general fund revenues. <br /> • The CIP is a dynamic process that will include changes necessitated by organizational changes, <br /> priorities,funding uncertainties, unforeseen emergencies, project delays, or plans by other <br /> entities which may alter the most well planned CIP. <br /> 18 <br />