Which of the following is a key characteristic of capital projects?

Capital projects are distinguished by their focus on providing long-term benefits and improvements to infrastructure, services, and community facilities. These projects often involve significant investments in physical assets such as buildings, roads, and bridges that are intended to serve public needs over an extended period. The characteristic of delivering lasting benefits makes capital projects essential for sustainable development in municipal finance, as they improve the quality of life for residents and can stimulate economic growth.

The other options do not align with the defining features of capital projects. For instance, funding through operational revenue is more characteristic of ongoing expenses rather than large, capital-intensive projects. The mention of short-term contracts contradicts the nature of capital projects, which usually require longer timeframes for both planning and execution. Finally, while service delivery is important, capital projects encompass broader objectives beyond merely providing services; they also include enhancing infrastructure and community assets, which support long-term strategic goals.