Posted: February 26th, 2015

Capital Budget & Debt Management Analysis

Paper, Order, or Assignment Requirements

Capital Budgeting: Debt Management

Question 1. The majority of residents in your community are interested in building an extension on to the only high school. They prefer the extension as opposed to a new high school, in part, because they favor pay-as-you go financing. The mayor has called upon you, as the director of the finance department, to advise him on this issue. Explain to the mayor the different financing possibilities along with the benefits and drawbacks to each. Finally, make a recommendation which course of action the mayor should take.

Question 2. Congratulations! Based upon your recommendations, the mayor has decided to pursue pay-as-you use financing for a new high school. While the political need for a new high school may be argued, the mayor has asked you to complete a capital budget analysis that he can take to the city council. Provide a detailed analysis of this capital project.

Instructions:

1. Answer the questions in 1 essay
2. Provide real life examples to support your finding
3. Make sure to follow AICPA and GASB rules
4. See attachments for resources that may help.
5. Include graphs, charts, statistical data, etc. to support your answer.
6. Use at least 5 sources/references.

Some Sources:

1. Balancing Governmental Budgets Under GASB 54

com/issues/2009/nov/20091713.html”>http://www.journalofaccountancy.com/issues/2009/nov/20091713.html

2. Debt Management Practices in the States

http://www.nasbo.org/sites/default/files/debtmanagmntinstates.PDF

3. Chicago Public Schools Fiscal Year 2014 Budget

http://cps.edu/finance/FY14budget/pages/debtmanagement.aspx

4. A Guide to Capital Budget

http://www.ibo.nyc.ny.us/iboreports/IBOCBG.pdf