What is the purpose of capital projects funds?

The purpose of capital projects funds is to manage resources that are restricted exclusively for capital expenditures. This means that these funds are used specifically for the acquisition or construction of major capital assets, such as buildings, infrastructure, and other long-term assets that will benefit the public over an extended period. These funds ensure that the financial resources allocated for such projects are properly accounted for and utilized in a way that aligns with the intended purpose of funding significant improvements or expansions in public services.

Capital project funds are distinct from other types of funds, as they focus specifically on long-term investments rather than daily operational expenses or routine maintenance. This segregation helps governmental entities maintain transparency and accountability regarding how public funds are being spent on capital initiatives, ensuring that necessary resources are available for essential infrastructure projects.