1 of 31

Capital Improvement Planning:

Reactive vs. Proactive Approaches

Laura Hanson

April 1, 2026

GOVERNOR’S OFFICE OF

PLANNING & BUDGET

2 of 31

What keeps you up at night

about your community’s infrastructure?

3 of 31

Town of Cedar Hollow

  • ~2,000 residents
  • Agriculture and natural resource- based economy
  • Long history of drought cycles
  • Limited tax base
  • Small staff

​

​

4 of 31

The Hidden Problem

​

  • Aging wells and pipes
  • Declining groundwater
  • Pumps working harder
  • Occasional water restrictions

​

5 of 31

The Pattern

  • Fix what breaks
  • Delay what doesn’t
  • Keep rates low

​

6 of 31

The Crisis

  • Multi-year drought
  • Primary well fails
  • Backup spring underdelivers

​

7 of 31

The Impact

  • Mandatory restrictions
  • Trucked-in water
  • Development halted
  • Businesses affected

​

8 of 31

The Cost

  • Emergency response
  • New well + upgrades estimated to cost $12–15 m
  • Town budget = $2 m

​

9 of 31

How did we get here?

​

10 of 31

Reactive vs. Proactive

  • Reactive = Responding to failure
  • Proactive = Planning for inevitability

​

11 of 31

Why We Become Reactive

  • Limited budgets
  • Political pressure
  • Competing priorities
  • Lack of data

​

12 of 31

The Cost of Reacting

  • Higher costs
  • Rate shocks
  • Service disruption
  • Loss of trust

​

13 of 31

What Proactive Planning Looks Like

  • Asset management
  • Capital Improvement Plan (CIP)
  • Funding strategy
  • Policy alignment

​

14 of 31

Step 1 - Know Your System

  • Inventory assets
  • Track age & condition
  • CASI

​

15 of 31

Step 2 - Understand Risk

  • Critical vs non-critical
  • Consequence of failure

​

16 of 31

Step 3 - Build a CIP

  • 1-year, 3-year, 5-year + plans
  • Long-term outlook
  • Utah Project Portal

​

17 of 31

Step 4 - Fund It

Local

  • Gradual rate increases
  • Impact fees
  • Reserve funds
  • Bonding
  • Authorized sales tax options

​

18 of 31

Step 4 - Fund It

State

  • Permanent Community Impact Board (CIB)
  • State Grants
  • Legislative Appropriation
  • State Infrastructure Bank (UDOT)
  • New Infrastructure Revolving Loan Fund
  • Utah Inland Port Authority loans

​

19 of 31

Step 4 - Fund It

Federal

  • USDA Rural Development Grants
  • Community Project Funding (CPF) - approx March

​

​

​

20 of 31

Step 4 - Fund It

https://gopb.utah.gov/funding-resources/

21 of 31

Step 5 - Plan for Uncertainty

  • Demand management
  • Land-use planning integration

​

22 of 31

Infrastructure and Land Use

The more spread out development is, the more it costs to serve.

23 of 31

Align Plans

  • Development applications + General Plan
  • General Plan + CIP
  • Growth tied to capacity

​

24 of 31

Growth Pays Its Way

  • Impact fees
  • Phasing

25 of 31

Quality of Life

  • Reliable water supply
  • Economic stability
  • Community identity

​

26 of 31

Reframing CIP

  • Not just engineering
  • Not just budgeting
  • It’s community protection

​

27 of 31

Cedar Hollow

An Alternate Ending:

​

  • Planned well replacement
  • Gradual funding
  • Conservation policies

28 of 31

Different Outcome

  • No crisis
  • Stable rates
  • Reliable system

​

29 of 31

Final Takeaway

“You can pay a little now…

or a lot later.”

​

30 of 31

What is one step your community can take this year?

​

31 of 31

GOVERNOR’S OFFICE OF

PLANNING & BUDGET