I think it is just a shortened way of referring to capital funds to be used for major facility construction or renovation.
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In Colorado, capital facilities refer to any improvement or facility that:
(a) Is directly related to any service that a local government or a fire and emergency services provider is authorized to provide; (b) Has an estimated useful life of five years or longer; and (c) Is required by the charter or general policy of a local government or fire and emergency services provider