5 Components Your Comprehensive Plan Needs to be Successful

Communities, big and small, agree that comprehensive planning – your 5-10-20 year plan – is essential to shaping a future that reflects a shared vision. Yet, crafting a plan that transitions from theoretical aspirations to actionable results remains a challenge for many municipalities. 

A truly effective comprehensive plan doesn't just outline potential development. It accounts for the financial, social, and logistical realities of implementation. In today's landscape, marked by economic uncertainty, public resistance to higher taxes, and growing pressures from neighboring communities, success lies in creating a plan that is both visionary and practical.

Traditionally, comprehensive plans have focused heavily on land use development potential, often leaving financial feasibility, community collaboration, and sustainability as afterthoughts. But the next generation of municipal planning professionals is leading the charge toward a more holistic approach, ensuring that plans not only inspire but also deliver results.

In this article, we explore five essential components that should guide both the creation and implementation of a successful comprehensive plan. By addressing these critical factors, municipalities can create plans that go beyond the theoretical, achieving real, measurable success. . 

1. Uncover the Anticipated Expense (Cost of Community Services)

A cost of community services study (COCS) determines whether various forms of land use contribute to or detract from local government budgets. COCSs help uncover the fiscal contribution of existing local land uses by providing a baseline of information that assists local officials and citizens in making informed land use and policy decisions.

COCS analyses should precede comprehensive planning to understand the land use relationships and achieve near-tax neutrality. Comprehensive planning committees can use COCS results to proactively consider the cost (or tax levy impact) of public services for each land use, developing a strategy that works for everyone based on anticipated tax levy impacts. This informed approach can lead to potential long-term tax savings and smoother implementation of approved plans.

To conduct a thorough COCS study, municipalities should analyze the fiscal contributions and service demands associated with the following categories of land use:  

• Residential: Includes single-family, two-family, and multi-family housing types, each with varying demands on public services such as schools, emergency response, and infrastructure.
• Business Covers commercial, industrial, and private utility developments, which often generate significant tax revenue but may also require substantial public investment in roads, utilities, or incentives.
• Agricultural: Considers farmland and open space, which may have lower service costs but contribute less in direct tax revenue.

Understanding these land use relationships allows municipalities to make informed decisions about zoning, development, and infrastructure investments, aligning their comprehensive plans with fiscal sustainability. 

2. Consider the Role of Economic Development, Financial Incentives

Community development and economic development are distinct yet interdependent processes. Community development enhances the quality of life, while economic development generates wealth, leading to community benefits. For a community to be economically viable, it must focus on both.

Economic development plays a pivotal role in uncovering potential revenue sources to implement planning efforts and assessing the tax rate and levy implications. By performing a COCS analysis and undertaking economic development activities, municipalities better understand their potential funding sources, the tax implications, and the “costs” of implementing a comprehensive plan.

To effectively incorporate economic development into comprehensive planning, municipalities should consider key financial tools and strategies that can enable the implementation of the plan while balancing tax burdens. These include: 

• What financial incentives may be available, for how long, and for what type of development? Municipalities must evaluate the potential of tools like grants or subsidies to attract investment.
• Is Tax Incremental Financing (TIF) or tax abatement a potential financial incentive to consider? TIF districts or tax abatements can stimulate growth but require careful planning to ensure long-term community benefits.
• Can hybrid or creative financial incentives be developed to meet the needs of the community in order to implement a comprehensive plan and to guide strategic growth? Exploring innovative funding mechanisms can address gaps and support strategic growth.
• Will the local government need to budget or issue general obligation debt, or provide public cost gap financing? Understanding these obligations helps anticipate the financial risks and rewards of development projects.
• Can the municipality establish impact fees to reduce the impact to current residents as a result of future land use development needs? Impact fees can be a fair way to ensure new development contributes to infrastructure and public services. 

By proactively addressing these questions, municipalities can align their economic development strategies with their comprehensive plan, ensuring that financial incentives are not only feasible but also equitable and impactful. This integration strengthens the plan’s ability to foster community and economic growth while maintaining fiscal responsibility. 

3. Prepare to Update Your Plan Every 5 Years

The traditional comprehensive planning mindset of planning for 20 years can become outdated quickly. Many plans become irrelevant at about the 5-year mark due to evolving regulations, technological advances, and unplanned future costs. 

To ensure comprehensive plans remain actionable and aligned with a community’s needs, municipalities should incorporate a clear approach to ongoing evaluation and adjustment. This requires:

• Establishing a structured update schedule. Commit to reviewing the plan every five years to account for changes in regulations, technology, or demographics.
• Developing financial scenarios. Consider potential funding sources for infrastructure, public utilities, and open spaces as part of each review.
• Implementing monitoring metrics. Track key performance indicators (KPIs) tied to plan goals to assess whether objectives are being met or need adjustment. 

For example, municipalities can create a rolling review system, where different components of the plan (e.g., land use, transportation, or housing) are reviewed annually, ensuring the entire plan is updated within a 5-year period. By prioritizing regular updates, communities can maintain relevance, adaptability, and alignment with long-term goals. 

4. Partner with adjacent communities upfront

Comprehensive planning doesn’t happen in isolation. Communities must consider the interconnectedness of their growth with neighboring municipalities. Adjacent communities often compete for annexation, leading to delays, legal challenges, and political friction that can derail even the most carefully crafted plans.

To avoid these pitfalls and foster collaboration, municipalities should proactively engage their neighbors early in the planning process. This involves:

• Establishing clear growth boundaries. Define and agree upon boundaries to avoid conflicts over annexation and streamline development efforts.
• Negotiating shared resources. Collaborate on public utilities, transportation infrastructure, and open spaces that benefit all parties.
• Drafting intergovernmental agreements. Formalize partnerships to ensure long-term cooperation and mutual accountability. 

By working together, municipalities can reduce inefficiencies, unlock cost-saving measures, and build stronger relationships that support regional growth. For instance, joint infrastructure projects or shared economic development initiatives can lead to mutually beneficial outcomes while saving political capital and taxpayer dollars. 

5. Incorporate Sustainability and Resilience

Sustainability and resilience are no longer optional in comprehensive planning; they are essential for preparing communities to thrive in the face of future challenges. Sustainability ensures a balance between environmental, social, and economic priorities, while resilience emphasizes a community's ability to recover and adapt to adverse situations.

Municipalities should embed these principles into their plans by addressing:

• Environmental sustainability: Integrate green infrastructure, renewable energy initiatives, and sustainable building practices to reduce environmental impact.
• Economic resilience: Diversify the local economy to reduce dependence on a single industry, invest in workforce development, and support small businesses to strengthen economic stability.
• Social equity: Ensure equitable access to housing, transportation, and essential services for all community members, including underserved populations.
• Risk preparedness: Conduct risk assessments and develop emergency response plans to minimize the impact of natural disasters or economic downturns. 

For example, a municipality might adopt renewable energy goals, implement zoning policies that encourage mixed-use development, or create a disaster recovery fund to protect against unexpected crises. By prioritizing sustainability and resilience, communities can build a stronger foundation for long-term growth and prosperity. 

Tying it all together

Comprehensive planning is more than a roadmap. It’s a living, breathing strategy that evolves with the community it serves. By incorporating these five essential components, municipalities can ensure their plans are both visionary and practical, addressing the complexities of growth while fostering collaboration and resilience. Whether you're drafting your first comprehensive plan or updating an existing one, the key is to approach the process holistically – balancing bold ideas with practical execution.

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