What is the GFOA threshold range for capital projects?

The GFOA threshold range for capital projects typically recognizes that capital expenditures are significant investments in physical assets that contribute to public infrastructure or services over a long period. The range of $15,000 to $300,000 is appropriate because it aligns with widely accepted criteria for what constitutes a capital project in governmental accounting and budgeting practices.

This range reflects the need for a robust threshold that captures projects requiring substantial funding, often justifiable through the benefits they provide over multiple years. Items below this threshold may not provide the same level of value or longevity, thus distinguishing capital from operational expenditures. Setting a threshold at this level helps ensure that resources are allocated appropriately and that projects selected for funding are significant enough to warrant the planning and oversight associated with capital budgeting.

In contrast, options that present lower or higher thresholds do not align with the standard practices outlined by the GFOA and may not effectively encapsulate the intended projects that benefit from capital funding.