Chapter 1 - Capital Fund Overview Flashcards
Capital Projects must have a useful life of how many years?
5 years or greater
The maximum useful life for a project is how many years?
40 years
What is a Capital Project?
An individual project which may be part of the Capital Budget
Capital program can be for how many years?
Either a 3 year or 6 year program.
3 years if population is under 10,000
6 years if population is greater than 10,000
The Local Bond Law requires a cash down payment of ___ of the amount of bonds or notes authorized by a bond ordinance.
5%
The down payment on improvements is usually appropriated in the _____ _____ budget and transferred to the _____ _____.
Current Fund
Capital Fund
The cost of general improvements is borne by whom?
The taxpayers of the entire municipality
The cost of local improvements is borne by whom?
The owners of the properties specially benefited by the improvements
The Capital Fund accounts for the related receipts and expenditures and transactions are account for through the application of what?
An “Analysis of General Capital Cash”
The result of a project being fully funded and the total amount of cash available has not been needed for completion of the project is called what?
Capital Surplus or Capital Fund Balance
Appropriations created by the adoption of a bond ordinance or other capital ordinance are titled what?
Improvement Authorizations
No expenditure may be made from any sources of funding without the adoption of what?
An ordinance describing the project and specifying the source of funding
What law is the basis for all operations in the Capital Fund?
The Local Bond Law
When was the Local Bond Law enacted?
1935
Municipalities that have utilities will also have a ______ Fund.
Utility Capital Fund
