Which of the following statements correctly describes the Capital Budget amendment?

The statement that the Capital Budget amendment necessitates proper documentation of expenses is correct because accurate and thorough documentation is a fundamental requirement for any financial amendment, including the Capital Budget. This documentation serves as a record of how funds were allocated and spent, ensuring transparency and accountability in municipal financial practices. Proper documentation helps to provide a clear audit trail, which is essential for compliance with regulations and for justifying expenditures related to capital projects.

In the context of municipal finance, the Capital Budget specifically addresses long-term investment in infrastructure and significant capital improvements. Therefore, maintaining detailed records is crucial for justifying the necessity and efficiency of these projects to both municipal stakeholders and state oversight agencies.

The other options do not correctly characterize the requirements surrounding a Capital Budget amendment. For example, amendments are not unrestricted and must follow specific legal and procedural guidelines, including potential state oversight in certain situations, but this does not automatically require state approval for all amendments. Additionally, the need for a Capital Budget amendment is not limited to large cities; all municipalities with active capital projects must adhere to consistent documentation and procedural standards, regardless of their size.