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Unless they’re capital GRANTS I don’t see how that could be correct. They’re taking money from other programs and services to pay for an arena. It’s all one pot.
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No, they are not. The capital budget is funded through various methods (including government grants, debt, reserves, etc.). The capital budget can take on debt, it can run a surplus, and it is planned over a 5-year period.
The operating budget is net zero. It can not run debt, nor can it run a surplus. The vast majority of it comes from property tax, business tax, and revenue from goods and services sold by the city. It is planned year by year.
The capital budget is spent on infrastructure (from buildings to road repairs), buying new equipment or vehicles, or any long term investment (buying or building something expected to last more than one year).
The operating budget goes towards programs and services. It's, simply put, operating and staffing the buildings and equipment.
Because the money comes from two different places, and must be spent on two different things, it is not (in any way) taking money from programs and services to pay for an arena.