Capital Projects Overview

Learn more about how the City funds and develops permanent assets, such as public infrastructure, public buildings, parks, and water systems.

What is a Capital Project?

Generally, a capital project is fixed in nature, has a relatively long life expectancy, and requires a substantial financial investment. Capital projects traditionally take the form of large-scale physical developments, such as buildings, streets, and water mains. However, a wide range of other projects qualify for capital funding consideration, including fire-fighting apparatus, street lighting, and computer software. A capital project must cost a minimum of $5,000, and generally include one or more of the following characteristics:


  • Acquisition of real property, including the purchase of land and/or existing structures for a community facility or utility.

  • Major replacement of facilities, such as roofs, heating, plumbing, and electrical systems.

  • Preliminary studies and surveys pursuant to acquisition, construction, or rehabilitation of City-owned property.

  • Purchase of specialized equipment and furniture for public improvements when first erected or acquired.

  • Cash contributions when necessary to fulfill the City's obligation in federally-assisted programs of a capital nature.

  • Improvements to City-owned public utilities, such as sewers, water mains, fire hydrants, streets, and catch basins.

  • Vehicles (excluding special equipment not considered a part of the vehicle) exceeding $25,000 in cost and having a life expectancy of more than ten years.

Active Capital Projects

The Capital Budget is approved annually by City Council alongside the City's Operating Budget. However, capital projects are only considered active once the City has obtained funding to cover the cost of the project. Once funding has been secured, work can begin.


Per the City Code, the Capital Review Committee meets quarterly to review the status of active capital projects. Information from these meetings will therefore be provided on a quarterly basis on OpenGov.

How are Capital Projects Funded?

Methods of Funding:

  • General Obligation Bonds: The bulk of funding for capital projects is provided by general obligation bonds issued by the City and repaid out of the appropriate department's operating budget over a 20-year period.

  • Federal & State Funds: The Federal Government and State of Delaware have provided substantial support for capital projects in the City. For example, federal grants have often composed a major portion of funding for sewer and water projects, with local capital funding being used to "match" the federal portion.

  • Unused Capital Funds: Unspent funds from previous Capital Budgets are reviewed annually to determine whether a former project has been temporarily delayed, altered, or is no longer feasible. Based on this analysis, funds might be transferred to current fiscal year projects in order to reduce the amount being currently borrowed.

Capital Projects Spending by Department

FY 2020 Capital Budget

What is the Capital Budget?

The FY 2020 Capital Budget is part of the FY 2020-FY 2025 Capital Improvements Program (CIP), a six-year capital spending program adopted by City Council annually.


Because the City goes to the bond market every other year, the Capital Budget includes two full fiscal years of funding. The FY 2020 Capital Budget therefore covers both FY 2020 and FY 2021. The decision to bond biennially reduces the frequency of borrowing and lowers financing costs.


How is the Capital Budget Developed?

The process begins with City departments submitting requests for specific projects to the Office of Management & Budget and the Department of Planning during the annual budget process. Three major considerations guide the review of these departmental requests:


  1. Overall development objectives for Wilmington. This includes the feasibility, desirability, and need for specific projects.
  2. The relationships among projects with respect to design, location, timing of construction and the nature of activities involved.
  3. The City's fiscal policies and capabilities.

The City Planning Commission reviews the Capital Program for conformance to the Comprehensive Plan and other City policies. The Capital Program is then submitted to the Mayor for his review and transmittal, along with the Annual Operating Budget, to City Council for their approval.


Click here to read the complete FY 2020 Capital Budget.