If neither condition for requiring a capital budget is met, a capital budget need not be filed.

• A. True
• B. False
• C. Only if population over 10,000
• D. Always required

Answer: (A)

The key idea here is that a capital budget filing is triggered by specific conditions in the local budget rules. A capital budget is meant to cover capital projects and any associated debt or financing plans. If there are no capital projects requiring separate appropriation and no plan to incur debt for capital improvements, there is nothing in a capital budget to report, so filing is not required. In other words, the obligation to file depends on whether qualifying capital activities exist; without them, you don’t file. That’s why the statement is true. The other choices aren’t correct because capital budgets aren’t always required, and they aren’t determined by population size.