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Circular No. Date Doc ID. 10-34 20 December 2010 A180598 Contact Finance Policy Section 02 4428 4100 [email protected] CAPITAL EXPENDITURE GUIDELINES The purpose of this circular is to advise councils of the release of the Capital Expenditure Guidelines (the Guidelines). The Guidelines will assist councils in the preparation and review of certain capital expenditure projects. These Guidelines replace Circular to Councils 97-55. The overriding principles of the Guidelines are accountability and prudent financial management of council resources. Councils are required to undertake a capital expenditure review for projects that are not exempt and cost in excess of 10% of council’s annual ordinary rates revenue or $1 million (GST exclusive), whichever is the greater. There are additional requirements for non exempt capital projects where the project costs are expected to exceed $10 million (GST exclusive). Councils are required to notify the Division of all capital projects that fall within the threshold. The Guidelines have been issued pursuant to section 23A of the Local Government Act 1993. As such, councils must consider these Guidelines before committing to capital projects. It should be noted that councils are expected to undertake the processes outlined in the Guidelines, irrespective of the funding sources of projects. Councils may consider it prudent to undertake capital expenditure reviews for projects under the threshold, but this will be at the council’s discretion. Ross Woodward Chief Executive, Local Government A Division of the Department of Premier and Cabinet Department of Local Government 5 O’Keefe Avenue NOWRA NSW 2541 Locked Bag 3015 NOWRA NSW 2541 T 02 4428 4100 F 02 4428 4199 TTY 02 4428 4209 E [email protected] W www.dlg.nsw.gov.au ABN 99 567 863 195