What is the minimum cumulative cost of items for which a capital budget must be adopted?

The correct minimum cumulative cost for which a capital budget must be adopted is typically set at $25,000. This threshold ensures that municipalities focus their budgeting efforts on significant expenditures that fall into the category of capital items, which are usually long-term investments in infrastructure and major projects. By establishing a threshold, municipalities can better prioritize their funding for substantial projects that will benefit the community over time, as opposed to smaller, more routine expenditures that are often covered in the operating budget.

Setting this limit at $25,000 helps municipalities allocate resources effectively, ensuring that expenditures that impact the community's long-term infrastructure and capital assets are carefully planned and funded. This amount is generally recognized in public finance as a useful benchmark for determining the significance of capital expenditures.