Project Funding: How it Works

Capital Improvement Plan (CIP) Projects

What is a “CIP”?

CIP stands for “Capital Improvement Plan” and is an important item in the annual City budget. It’s a five-year plan that establishes priorities, funding sources, and timelines based on City Council input, master plans, City staff assessment, and citizen input. The five-year CIP is the work plan that defines how projects are implemented. It is updated annually.

Types of CIP Funding Sources

  • Twelve cents of every tax dollar go into the CIP and Project Management fund.

  • 4B funds, set aside specifically for amateur youth sports, can be used for CIP projects that fall within that category. 4B funds are twelve cents of local sales tax.

  • Grant funds are often used to pay for CIP projects.

  • Reinvestment funds are a category within CIP funds that are earmarked annually to maintain and improve existing infrastructure.

  • When a project doesn’t qualify for restricted funding, like those mentioned above, the City sells Bonds to fund projects.

Hometown Heroes Bathrooms

A majority of the project was funded by 4B funds. Sewer and water connections to the bathrooms came out of utility funds.

Hometown heroes bathrrooms

Butler/Turner Roadway Improvements

This project was funded entirely by CIP reinvestment funds.

Butler and turner roundabout 2.

518 Bypass Hike & Bike Trail

The design and 20% of the construction cost of the trail was paid for by 4B funds. A TxDOT grant paid for the remaining 80% of construction costs.

FM 518 bypass hike and bike trail under construction