When can a municipality adopt a capital budget?

A municipality can adopt a capital budget prior to the final adoption of the annual budget because this process allows the governing body to plan for and allocate funds to long-term projects that may extend beyond the current fiscal year. Capital budgets are related to significant investments in infrastructure or large purchases, and by adopting it before the annual budget is finalized, the municipality ensures that the necessary funding is accounted for and available in the broader context of the financial planning for the upcoming year. This approach facilitates strategic planning and prioritization of projects based on available resources.

Adopting a capital budget at this stage also aligns with best practices in municipal finance, enabling municipalities to address community needs effectively, forecast future expenditures, and manage financing options early in the budgeting process. This proactive stance supports transparency and better fiscal management in local government.