CAPITAL BUDGETING

1
CAPITAL BUDGETING

• Capital Improvement
• Total Project Costs in Current Bienniumand in
  any futureBiennium will be less
  than500,000.REQUIRES Capital Improvement Pkg

2
CAPITAL BUDGETING

• MAJOR CONSTRUCTION or ACQUISITION
• Any Completed Project Expected to
• Cost 500,000 or MORE
• Allowed a SIX Year spending period
• from the time of concept approval

3
CAPITAL BUDGETING

• ANY Financing Agreement
• Where the initial principal amount is
• greater than 100,000
• AND
• is payable over more than the current biennium
• REQUIRESDAS and Treasury approval

4
CAPITAL BUDGETING

• SEE
• OAM 15.60.30 thru 15.65.30
• For the definitions of a capital leaseversus an
  operating lease andother considerations
  regarding whether an expenditure creates a
  capital assetor can be treated as an operating
  expense

5
CAPITAL BUDGETING

• COPs
• Requires in THE AGENCIES BUDGET
• project expenditure approvalissuance costs
  expenditure approval
• debt service expenditure approval
• and
• COP Issuance Authority in the statewide Bond Bill

6
CAPITAL BUDGETING

• questions on Financing Agreements, Certificates
  of Participation,Capital Projects
• ORother debt service or financing questions
• CALL
• Jack Kenny 503-378-3107