Capital Improvement
What it is:
In general, a capital improvement is a one-time expenditure for physical assets such as buildings, land, construction, landscaping or major equipment.
How it works (Example):
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.
Why it Matters:
This term usually refers to government or municipal projects. Often, the goal is to improve the quality of life in the town, attract more tax-paying business and comply with new building codes or laws.
