Capital projects refer to what kind of expenditures?

Capital projects refer to expenditures that involve the purchase or construction of long-term assets. This category typically includes significant investments in infrastructure, facilities, equipment, and other tangible assets that provide benefits over an extended period, generally exceeding one year. The importance of capital projects lies in their role in enhancing or expanding a municipality's service capabilities or operational efficiency through the acquisition of durable assets.

Investments in capital projects are often funded through specific financing methods such as bonds or dedicated tax revenues because they require substantial funding upfront and provide value over time. Such expenditures focus on major improvements or additions that contribute to the long-term value of a municipality's asset base, contrasting significantly with short-term operational expenses or administrative costs which are concerned with the day-to-day functioning of the municipality.