Local Funding Sources
A capital improvement budget (CIB) is a multi-year budget document used to schedule capital expenditures by fiscal year. The purpose of the CIB process is to review a jurisdiction's capital needs and develops an implementation "plan of action" based on anticipated revenue streams, as well as anticipated project cost. Transportation projects are only a portion of a jurisdiction's Capital Improvements Budget.
Capital Spending Plan
Each year, under normal circumstances, a local jurisdication's mayor and finance director make recommendations to their local legislative body as to which projects from the CIB they would like to move forward. This is called a Capital Spending Plan. This differs from the CIB in that the Capital Improvements Plan actually gives the agency authority to spend the money whereas the CIB is only a plan of how to spend the money. Once the legislative bodyapproves this Plan, the selected projects can move along toward completion.
Capital Projects Fund
Some local jurisdictions set aside a portion of their revenues into a Capital Projects Fund or a similar funding pot. As the name suggests, the Fund is used to pay for major capital projects - including transportation projects.
State Street Aid Fund
First introduced in 1983, the State Street Aid program allocates a portion of the State's gasoline fuel tax to incorporated cities to help construct, repair, and maintain municipal streets. Traditionally used for roadway widening, this fund can also be used towards street signage and lighting, principal and interest payments on bonds, as well as auto and worker compensation insurance (for street improvement activities only). Currently the State allocates $28.49 for each resident of the municipality into the Fund.