Describe examples of business and government capital projects in your community.

Bridges and road repairs. School buildings and libraries. Buses and fire trucks. This is just a partial list of New York City’s capital spending. Each year, the city spends more than $4.5 billion for new and replacement items. In New York City, a capital project is defined as the construction, reconstruction, acquisition, or installation of a physical public improvement.

The value must exceed $35,000 and the project should have a useful life of at least five years. Some of the city’s capital spending is shown below.

What $10 Million in Capital Spending Buys Housing 100 units of housing for the homeless mentally ill Transit 6 high technology subway cars/25 hybrid diesel-electric buses Sanitation 54 dual-bin recycling trucks Fire 11 ladder trucks Education 7 classrooms Transportation Resurfacing 100 lane-miles of city streets Environment 8,000 feet of water mains (new construction)

The day-to-day operating expenses of the city are funded by taxes, general obligation municipal bonds, and other government revenue sources. Many capital projects are financed by another type of municipal bond, the revenue bond. Repayment of these bonds occurs using the revenue from the specific project, such as a toll bridge or a sports stadium.
In addition, a city may receive a state, federal, or private grant to help finance capital projects that provide public benefits.