The Capital Improvements Program/Plan (CIP) serves as a valuable financial planning tool for Harnett County, assisting the Board of Commissioners, department heads, and employees in achieving their program and service goals. By identifying capital needs, also known as projects, and establishing funding schedules, the CIP ensures strategic allocation of resources. In Harnett County, the CIP covers a comprehensive seven-year period, enabling us to proactively address capital requirements well in advance.
A capital project refers to expenditures that result in tangible capital assets, such as equipment purchases or building constructions. It's important to consider all components necessary to complete the project as part of the overall scope. For instance, if constructing a new building, the project should encompass land acquisition, architectural design, and furnishing as integral components.
To determine if a project or purchase should be included in the CIP, we consider the following key characteristics:
- Total Cost: Projects with a minimum value of $100,000 must be requested through the CIP rather than the operating budget. This threshold ensures that significant projects receive appropriate financial planning.
- Multiple Items: When proposing multiple items, such as vehicles or equipment, for inclusion in the CIP, each individual item should have a cost of $100,000 or more.
- Useful Life: The project should result in an asset with a long lifespan, exceeding one year. Typically, capital assets with a useful life of 10 years or more are included in the CIP.
- Recurrence: The project should be non-recurring or have a recurrence interval of less than 10 years. This ensures that long-term planning is focused on addressing evolving needs rather than routine expenses.
- Future Foreseeability: Ideally, the project should be anticipated well in advance, with a foresight horizon of seven years, relative to the year of need.
The Capital Improvements Plan is reviewed and approved by the Board of Commissioners in the fall. The upcoming annual operating budget includes Year 1 of the plan, ensuring that the CIP aligns with our overall financial framework.
We are dedicated to responsible and strategic capital management, aiming to enhance the quality of services and facilities provided to our community. The CIP enables us to plan, prioritize, and fund projects efficiently, fostering long-term growth and development in Harnett County.
Thank you for visiting our webpage and learning about our Capital Improvements Program. Should you have any questions or require further information, please feel free to contact us. We appreciate your interest and involvement in shaping the future of our county.