The operating (or current) budget covers ongoing operating expenses of the City and the capital budget covers long-term investment in infrastructure.
The operating budget, previously referred to as the "current" budget, includes all anticipated current expenditures and revenues related to the ongoing operations of the City. Expenditures include salaries, goods, services, transfers to reserves. Revenues include property tax and user fees. The shortfall between expenditures and non- tax revenues results in the portion that must be raised by property taxes.
The capital budget includes money spent on building, buying or improving capital infrastructure such as roads, buildings, vehicles and major equipment.