Tangible capital assets are the physical infrastructure and equipment municipalities own and use to provide services, representing their largest asset holdings. Major categories include transportation infrastructure (roads, bridges, sidewalks), water and wastewater systems (pipes, treatment plants, pumping stations), buildings (recreation centres, fire halls, administrative offices), vehicles and equipment (fire trucks, snow plows, computers), and land improvements. Municipalities maintain asset inventories tracking condition, age, replacement cost, and remaining useful life. The 'infrastructure deficit'—the gap between current infrastructure condition and desired standards—is a major municipal concern. Asset management planning prioritizes investments to maintain infrastructure in acceptable condition while working within budget constraints.