A capital improvement plan (CIP) should include a multi-year capital plan and annual capital budget for all community departments. These documents should: (1) prioritize the various proposed capital projects; (2) estimate project costs; and (3) list the proposed method of payment (current revenue, debt or debt excluded from the limits of Proposition 21Ž2) for each project. Regardless of funding ability, annual presentation of a capital budget to the legislative body has merit. It serves to inform citizens of the community’s capital needs and makes them aware of essential projects that may be deferred due to financial constraints.