As our text describes, Capital expenditures purchase physical assets that are expected to provide services for several years; the outlay will yield benefits in the future without having to repeat the purchase (Mikesell, 2018). Where this gets complicated is that it is usually expensive, and that cost has to be borne before it is built but not necessarily utilized. For example, we need a new City Hall, the cost of building will be approximately $12 million. We have a budget surplus of $40,000 this year, how do we pay for it? We can save for it over the years, build a fund. We can issue bonds and borrow to pay for it? But why is it not part of our "normal" budget