Which statement best describes the sequencing of projects in a capital improvement program?

• A. Projects are sequenced based on financing capacity and readiness.
• B. Projects are funded randomly.
• C. Projects are sequenced by alphabetical order.
• D. Projects are funded solely by grants.

Answer: (A)

Sequencing in a capital improvement program is about aligning when projects can actually move forward with when funds are available. It prioritizes both financing capacity and project readiness, meaning the ability to start work requires sufficient funds and practical steps like design complete, permits secured, and necessary dependencies lined up. This approach keeps the program affordable and implementable over time, avoiding cash-flow problems and idle capacity.

Funding projects randomly would ignore budgeting discipline and the realities of cash flow. Organizing projects by alphabetical order has no relation to need, feasibility, or financing. Funding solely by grants overlooks the reality that CIP typically relies on a mix of funding sources and requires prioritization based on overall financial feasibility and readiness.