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2013 Capital Purchases

Jul 31

Written by: - Oliver Walling
7/31/2012 11:13 AM  RssIcon

Is your Board thinking about making a Capital purchase in 2013?  Now is the time to start the process.  Since Capital purchases are outside the Cap, DCA is questioning some of the items being budgeted as "Capital".  Review with your attorney the statutory definition of Capital.


All Capital purchases must have voter approval prior to inclusion in the budget.  So, if you have a Capital purchase planned for 2013,  you must have voter approval before you introduce your 2013 Budget.  There are two types of election processes permitted by statute.  One is like the February election where you need 60 days of notice and prescribed hours for voting.  The other method is a special meeting election.  This method requires 10 days notice and the window for voting can be much smaller.  If you are issuing bonds for the purchase, most bond attorneys will insist upon the 60 day election.  Lease purchasing is permitted through the special meeting election.  You must request authorization to issue bonds or lease purchasing if you are financing the project.  You must obtain voter approval to purchase and to finance.


Do not forget to include Capital purchases in your budget.  Even if you have voter approval and funds in the Capital Fund, you cannot spend money unless you have budgeted for the purchase.


Consult your attorney and you accountant before you begin the process. 

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