Specific capital budgeting policies can address capital planning, for
example, requiring a jurisdiction’s chief executive officer to prepare a multiyear
CIP. Other policies may relate to capital financing, for example, creating
and funding capital reserves for the replacement of major equipment and
the rehabilitation of infrastructure, identifying the types of projects for
which debt will be considered, and limiting debt by reference to ratios that
measure the jurisdiction’s debt-carrying capacity and perhaps encouraging
departmental staff members to seek intergovernmental grants to help finance
projects. Other policies can address the authorization of projects and set
guidelines for project implementation