How does the City's Capital Budget differ from its Operating Budget? (2024)

The City’s Annual Budget has two primary components: the Operating Budget and the Capital Budget. The Capital Budget funds major improvements to City facilities and infrastructure, and is based on the first year of needs in the five-year Capital Improvements Program (CIP) Plan. The Capital Improvements Program (CIP) Plan is an annually revised document that guides the City’s investments in public facilities and infrastructure during a five-year time horizon. The Capital Budget is supported through multiple funding sources, including different types of bonds (debt), grants and cash as well as other smaller sources of funding.

The Operating Budget includes personnel costs and annual facility operating costs. It is funded primarily through local property and sales taxes; revenue transfers between departments; licenses, such as building and development fees; franchise fees for a company’s use of the City’s rights-of-way; charges for services; fines and other smaller sources of revenue such as interest on investments.

City Council holds public hearings on the proposed operating and capital budgets and then approves both budgets in August or September for the following fiscal year, which begins Oct. 1.