A capital improvement plan (CIP) is a five-year plan that details projects and estimated expenditures for necessary improvements that ensure the safety and reliability of EID’s infrastructure. The five-year plan includes projects spread across five categories of work—water, wastewater, recycled water, hydroelectric, and general district.
EID’s board of directors reviews and adopts an updated plan every year. In addition, throughout the year, the board approves actual funding expenditures for each specific project included in the plan.
EID’s engineering department leads the annual evaluation and develops the plan along with input from other departments working closely with the operations department and the general manager. Staff continually monitors operational, engineering, and business requirements to ensure that systems are in good working order.
When evaluating the scope and need for each proposed improvement, staff assign one of three priority levels to each project. Priority 1a projects are mandatory from a health and safety standpoint. Projects identified as Priority 1b are required by law, regulations, or contract. Priority 1c projects are those that are already under construction.
A Priority 2a project is necessary to maintain the reliability of the district’s systems and facilities by replacing existing assets that have exceeded their useful life. Failure to replace the asset would lead to eventual failure of the water or wastewater facilities and cause interruptions in service. Priority 2b projects provide for increased revenues and Priority 2c projects meet demands of increasing growth.
Priority 3a projects increase service levels while Priority 3b projects improve efficiency. Finally, Priority 3c projects provide a community benefit.
After the evaluation is complete, staff members then bring their recommendations before the EID board as a public workshop, typically scheduled around September or October. The board may give direction to staff at the workshop. Then, normally in November, the plan is presented to the board as an action item for their final approval.
In order for the district to fulfill its mission to provide reliable, high-quality water and wastewater treatment services, as well as maintain its federally-licensed hydroelectric project, EID must maintain, repair and replace its valuable capital assets.
To fund some of the high-cost rehabilitations and replacements, public agencies like EID use tax-free, low-interest bond financing to repair and replace infrastructure that will have a service life of 50 years or more. Other projects may have equal or longer horizons. Bond financing—acquiring low-interest debt—helps EID manage the cost and spread it equitably across the generations of customers who will benefit from the needed repairs and improvements.
District staff gives vigilant attention evaluating the CIP to ensure that the projects included in the plan are vital and necessary to maintain reliability and protect public health. Safety, service reliability, and meeting regulatory mandates are three of the vital reasons we aim not to defer important projects: in fact, 99 percent of planned expenditures for the 2019 – 2023 plan are categorized as Priority 1 or 2 projects.
Learn more about District finances (current CiP, Operating Budget, and CAFR)
Document Library (current and prior CIPs)