What is Capital Improvement?
In general, a capital improvement is a one-time expenditure for physical assets such as buildings, land, construction, landscaping or major equipment.
How Does Capital Improvement Work?
Let's say Town XYZ wants to refurbish ABC Elementary School. It intends to pursue several capital improvements: Build a new wing for the fifth-graders, replace the playground, install better security systems, and redo all the plumbing.