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WHY ANALYSIS OF CAPITAL PROJECTS IS IMPORTANT
Decisions regarding capital projects can have important impacts on the fiscal health of communities for a variety of reasons. By definition capital projects are big-ticket items that represent major financial commitments. Because communities often finance capital projects through long-term borrowing, these financial impacts are felt over a long period of time. Further, capital projects frequently result in long-lived physical assets that may carry with them annual operating costs for maintenance, and eventually, major renovation costs.
Capital projects present particular analytical challenges for budget staff ...