Which of the following would be accounted for in the Capital Projects Fund?

• A. Maintenance of municipal buildings.
• B. Payment of salaries to city staff.
• C. Construction of a parking garage.
• D. Grants to private organizations.

Answer: (C)

Capital Projects Funds are used to account for resources designated for major, long‑term improvements such as constructing facilities. Ongoing maintenance of municipal buildings and salaries for city staff are operating costs and belong in operating funds, not this one. Grants to private organizations aren’t typically treated as capital outlays in the Capital Projects Fund unless they specifically finance a capital asset, whereas a project like building a parking garage directly represents a capital improvement. Therefore, the construction of a parking garage is exactly the type of activity that would be tracked in a Capital Projects Fund, with expenditures recorded as the project progresses and the completed asset ultimately reflected in the government-wide capital assets.