What do projected costs refer to in the context of capital projects?

Projected costs in the context of capital projects refer specifically to the estimated expenses associated with funding identified projects. This encompasses all anticipated costs that will be incurred during the planning, development, and execution of a capital initiative. These costs can include materials, labor, permits, and any additional expenditures that may arise throughout the project lifecycle.

Understanding projected costs is crucial for effective budgeting and financial planning, as they help ensure that sufficient funds are allocated to complete the project successfully and achieve the intended outcomes. By focusing on estimated expenses instead of historical data or revenue projections, municipalities can better prepare for the financial implications of their capital projects.

This understanding is central to determining the financial feasibility of a project and ensuring that resources are managed appropriately to meet the community's needs effectively.