What are capital funds used for in the context of water systems?

Capital funds play a crucial role in the financing of long-term infrastructure projects essential to the development and maintenance of water systems. These funds are specifically allocated for significant investments in facilities, equipment, and major improvements, such as the construction or rehabilitation of water treatment plants, pipelines, reservoirs, and other critical components of the water supply system. Unlike operational expenses, which cover everyday costs like wages and supplies, or maintenance which focuses on routine upkeep, capital funds are aimed at projects that enhance capacity, efficiency, and compliance with health regulations over an extended period. This focus on long-term investments ensures that the infrastructure remains reliable, safe, and capable of meeting the community's water needs well into the future.