How do capital projects typically relate to the fiscal year?

Capital projects are significant undertakings that usually involve substantial financial investments, such as the construction of infrastructure, buildings, or large-scale equipment purchases. One key characteristic of these projects is that they often extend beyond one fiscal year due to their complexity and duration.

These projects typically require advanced planning, financing, and execution, which can take several years to complete. It is common for municipalities to plan and budget for capital projects in phases, spanning multiple fiscal periods. This is crucial for managing resources effectively, as it allows a municipality to allocate funds over time, ensuring that projects are viable and that budgets remain balanced.

Moreover, capital projects frequently involve changes in scope, unexpected delays, or additional funding needs, further contributing to their likelihood of crossing fiscal year boundaries. Therefore, the relationship of capital projects to the fiscal year is often characterized by long-term planning and execution rather than strict adherence to a single fiscal period.