Finally, public infrastructure and facilities are essential in a jurisdiction’s
economic development plans. Many local communities are growing rapidly;
the local governments serving them are hard pressed to provide the water and
sewerage, transportation, and other facilities needed to accommodate the
growth. Other communities,especially in more rural areas or where traditional
industries are shutting down,are experiencing economic decline or stagnation.
Local governments serving these areas are undertaking economic development
programs that rely heavily on building new and upgrading existing infrastructure
and facilities to attract new businesses.Capital budgeting can be a vital part
of the economic development programs of both fast-growing communities
and communities attempting to spur economic growth or change.