Which fire and emergency services budget type includes items that cost more than a specified amount of money and are expected to last more than one year?

• A. Bond budget
• B. Capital budget
• C. Personnel budget
• D. Cost recovery budget

Answer: (B)

Capital budgeting is used for major, long-lasting investments. It covers items that cost above a set amount and have a useful life of more than one year, such as apparatus, facilities, or major system upgrades. Because these purchases are expensive and can provide benefits over many years, they’re planned and funded through a capital budget separate from day-to-day operating costs. The other budgets serve different purposes: a bond budget relates to financing through debt and the debt service; a personnel budget covers staffing costs; and a cost recovery budget deals with charging for services to recoup expenses.