According to the Local Bond Law, what is the minimum useful life of a capital item?

The minimum useful life of a capital item, as stipulated in Local Bond Law, is five years. This standard is set to ensure that municipalities recognize the long-term nature of capital investments. Capital items, such as infrastructure improvements, buildings, and major equipment, are expected to provide benefits over an extended period, thereby justifying the issuance of bonds to finance their acquisition. By establishing a minimum useful life of five years, the law promotes fiscal responsibility and encourages municipalities to consider the longevity and value of their investments in relation to the funding they seek through bonds. Items with shorter lifespans may not warrant such financing, as they do not align with the long-term financial strategies that bonding is designed to support.