Chapter 2 - Capital Programming, Planning, & Budgeting Flashcards
We must make the first legal installment payment for the Bond Anticipation Note when?
On the 3rd anniversary of the Bond Anticipation Note
When do Bond Anticipation Notes need to be paid in full?
1st day of the 5th month following the close of the 10th year
What is the computation of the first Bond Anticipation Note installment payment?
Total value of BAN/(2 times the original useful life)-1
The Local Budget Law requires that each municipality and county shall adopt a what?
Capital Budget and Capital Plan
Under regulations of the division, a capital budget is required when?
When (a) the sum of the line item capital project appropriations in the current budget exceeds $25,000 and/or (b) a capital project ordinance is foreseen
What is required whenever a capital budget is submitted?
A Capital Improvement Program
A Capital Improvement Program, or a capital plan, must cover how many years, including the current year?
For a municipality under 10,000 population it must cover at least 3 years
For a municipality over 10,000 population it must cover a period from 4 to 6 years
Municipalities under 10,000 population are allowed to omit the capital plan when capital expenditures have been less than how much?
$25,000 in each of the three previous years and they are not currently planning to adopt a capital plan for any minimum period
A moving schedule or timetable of major construction projects and other improvements needed by a jurisdiction to be carried out during a specific period is called a what?
A capital improvement program (capital program)
The preparation and updating of proposed schedule of public works and related equipment to be built or purchased by a local government during the next few years is what?
Capital Programming
What are the eight methods of financing capital projects?
- Bond Ordinances
- School Bond Ordinances
- Capital Improvement Fund, Specific Capital Reserve
Ordinances - Capital Fund Balance Ordinances
- Re-appropriation Ordinances
- Current Fund Appropriation
- Deferred Charge to Future Taxation
- Resolution for Preliminary Plan Expenses
Bonds or notes may be issued by any local unit according to the procedures set forth in the Local Bond Law, for the financing of what?
Any capital improvement or property which it may lawfully acquire
A bond or note may only be authorized by what?
A bond ordinance adopted by the governing body of the local unit
