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Capital - What is it and how do we use it?

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Capital – What is it and how do we use it?

Rail maintenaince

Our Capital Plan has four areas:

  • Maintenance – extends the life of current buildings, facilities, equipment, etc.
  • Upgrades – meets changing technology, compliance and regulatory requirements
  • Growth – new infrastructure, services and systems
  • Service Change -  provides better ways and means to deliver services e.g. online City business

The City develops a capital investment plan that includes the estimated costs of items needed by The City that have a life expectancy of more than one year. These items range from land, to construction of infrastructure like bridges and interchanges, to needed maintenance of our buildings and facilities.

Projecting over 5 years

We may also purchase items with a life expectancy of more than one year. For example, purchases might include equipment, vehicles, and IT systems as well as buildings or other structures.

We build our capital plan in a five-year time frame because the costs and actual work may be spread out over more than one year depending on the size and complexity of the individual project.

As well, a five year time frame makes sure we have planned effectively and it also shows the full impact of our major multi-year projects. This means we always consider the need for new infrastructure against our obligations to existing infrastructure in established communities.

Looking for more information on The City's finances? Visit our financial overview for the big picture.