Capital Improvement Planning

Determining Capital Improvement Projects (.pdf)

Michigan Township News, June 2006

Funding Capital Improvements (.pdf)

Michigan Township News, June 2005

Bath Charter Township, Clinton County, CIP Overview and Project Request Form (.pdf)

Bloomfield Charter Township, Oakland County, CIP Process (Web page)

Delta Charter Township, Eaton County, 2008-2013 CIP (.pdf)

Guidelines for the Development of Community Park, Recreation, Open Space and Greenway Plans (.pdf) (DNR)

Until 2001, townships were required by the Uniform Budgeting and Accounting Act to develop a formal capital improvement planning process. Since 2006, under the Michigan Planning Enabling Act (MPEA), a township is required to adopt a capital improvement plan (CIP) if the township, alone or jointly with one or more local units of government, owns or operates a water supply or sewage disposal system.

Under MCL 125.3865:

"(1) To further the desirable future development of the local unit of government under the master plan, a planning commission, after adoption of a master plan, shall annually prepare a capital improvements program of public structures and improvements, unless the planning commission is exempted from this requirement by charter or otherwise. If the planning commission is exempted, the legislative body either shall prepare and adopt a capital improvements program, separate from or as a part of the annual budget, or shall delegate the preparation of the capital improvements program to the chief elected official or a nonelected administrative official, subject to final approval by the legislative body. The capital improvements program shall show those public structures and improvements, in the general order of their priority, that in the commission's judgment will be needed or desirable and can be undertaken within the ensuing 6-year period. The capital improvements program shall be based upon the requirements of the local unit of government for all types of public structures and improvements. Consequently, each agency or department of the local unit of government with authority for public structures or improvements shall upon request furnish the planning commission with lists, plans, and estimates of time and cost of those public structures and improvements.

"(2) Any township may prepare and adopt a capital improvement program. However, subsection (1) is only mandatory for a township if the township, alone or jointly with 1 or more other local units of government, owns or operates a water supply or sewage disposal system."

Regardless of whether it is required by statute, a CIP continues to be a very useful tool for all townships. Long-range planning can help disclose the current implications of future projects, such as the need to establish a sinking fund to finance the project.

A CIP can also provide coordination among projects to avoid wasteful duplication and ensure implementation at the proper time. The township's borrowing power can be reserved for use on a carefully developed project, rather than the first plan conceived. A project's impact on the township's operating budget can also be anticipated.