A capital asset is a long-lasting physical item of significant value that provides benefits over multiple years, including buildings, roads, bridges, vehicles, water systems, and major equipment. Capital assets are distinguished from operating supplies (consumed quickly) by their durability and cost. Municipal capital assets represent the accumulated infrastructure investment built over generations—often worth billions of dollars collectively. Accounting rules require tracking capital assets, recording their original cost, and amortizing (gradually expensing) their value over their useful lives. Capital asset management involves maintaining existing assets, planning for replacement, and strategically investing in new assets to meet community needs.