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NYS Comptroller

THOMAS P. DiNAPOLI

The Academy for New York State's Local Officials

Capital Planning and Budgeting: A Tutorial for Local Government Officials

Module 2 - The Capital Budget

Financing

Capital projects and acquisitions can consume large amounts of financial resources. A multiyear capital plan helps manage this consumption by scheduling expenditures over a number of years and by creating a financial plan to meet those expenditures. A long-term schedule of capital outlays gives planners time to arrange for sufficient financing. Time can mean options, and options can translate into a better deal for the local government.

A financing strategy should balance expected project requirements with good fiscal practices. Adhering to established financial policies, establishing accurate cash flow projections, and considering various funding alternatives are just some ways to achieve this balance.

Local governments have a number of options for financing capital projects and purchases, especially when they have several years to arrange for the funding:

A good plan will allow governing boards to examine each of these funding options and pursue the combination that best works for the local government.

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