Capital expenditures (capex) are funds spent to acquire, construct, or significantly improve long-lasting assets. This includes building new facilities, major renovations that extend asset life, purchasing vehicles and equipment, and constructing infrastructure like roads and water systems. Capital expenditures are distinguished from operating expenditures by their lasting benefit—the money spent creates or improves assets that will serve for years or decades. Accounting standards specify criteria for what qualifies as capital versus operating spending. Municipal capital expenditure decisions shape communities' physical form and affect future operating costs, as new assets require ongoing maintenance.