Capital Budget

Capital project decisions have long-lasting effects on the community and are supported by planning documents. While Administration prepares capital project Plans, it is Council that decides which projects to include or defer; Council may even offer an alternative to project implementation.

The purpose of the capital budget is:

• Maintenance and lifecycle (ML) repairs of Town Infrastructure;
• One-time and emergent (OE) maintenance and repairs;
• Rehabilitation and revitalization (RR);
• Planning and design (PD) of future assets; and
• Creation/purchase construction (CC) of new assets.

Capital decisions should consider the ongoing maintenance of existing and new assets to prevent an infrastructure deficit in the future. Investing in infrastructure such as roads, water lines, facilities, technology, and vehicles is an investment in the Town’s future. Maintenance and preservation of all assets provides the essential services residents rely on each day for health, safety, and enjoyment.

There are two components to the capital budget: one-time operational projects and capital projects. The first component is for one-time operational projects that are for periodic maintenance, planning documents, master plans, and emergent issues requiring support that are not part of the daily operational budget and are expensed in the year the transactions occur. 

The second component is capital projects where the Town invests in assets that could include the development, construction, maintenance, or repair of other tangible capital assets. These have a useful life beyond one year and are used on a continuous basis. They are recorded as an asset and amortized over the projected life of the assets. Projects are usually approved on the total cost and are often completed over multiple years.