§ 33.45 DEPRECIATION.

   (A)   Depreciation methods.

      (1)   The town shall depreciate capital assets by using the straight-line method. Salvage value will be determined on an asset-by-asset basis. Depreciation will be calculated at year-end. Land is not depreciated according to general accepted accounting principles.

      (2)   A network of assets is composed of all assets that provide a particular type of service for government. A subsystem of a network of assets is composed of all assets that make a similar portion or segment of a network of assets. The following will be the breakdown of the town’s networks and subsystems:

         Roads/Streets Network

            Subsystems:   Types of Streets

                     Curbs

         Traffic Components Network

            Subsystems:   Traffic Signals

   (B)   Straight-line depreciation.

      (1)   All assets accounted for under the capital asset policy will be depreciated using the straight-line method of depreciation. A gain or loss on disposal will be recorded.

      (2)   Following is a table of the most common useful lives:

Asset	Useful Life
Vehicle	5 years
Office equipment	5 years
Office furniture	20 years
Heavy equipment	10 years
Fire trucks	15 years
Buildings	50 years
Building components (HVAC systems, roofing)	20 years
Leasehold improvements	useful life of asset or lease term (whichever is shorter)
Land  improvements - structure (parking lots, athletic courts, swimming pools)	20 years
Land improvements - ground work (golf course, athletic fields, landscaping, fencing)	20 years
Outdoor equipment (playground equipment, radio towers)	15 years
Grounds equipment (mowers, tractors, attachments)	15 years
Computer hardware	3 years
Computer software	5 years
Traffic signals	25 years
Flood walls/gates	50 years
Roads:    Cement    Gravel    Concrete    Asphaltic concrete    Brick or stone	10 years 15 years 30 years 20 years 50 years

 

      (3)   Town utilities assets’ useful lives are as follows:

         (a)   Sewer/wastewater utility.

Asset	Useful Life
Buildings and improvements	50 years
Sewer lines	50 years
Lift station	50 years
Treatment plant/equipment	10 years
Office equipment	5 years
Miscellaneous operating equipment	5 years
Vehicles	5 years

 

         (b)   Stormwater utility.

Asset	Useful Life
Buildings and improvements	50 years
Stormwater lines	50 years
Lift station	50 years
Treatment plant/equipment	10 years
Office equipment	5 years
Miscellaneous operating equipment	5 years
Vehicles	5 years

 

         (3)   Electric utility.

Asset	Useful Life
Buildings and improvements	50 years
Transmission lines	50 years
Transformers	20 years
Treatment plant/equipment	10 years
Office equipment	5 years
Miscellaneous operating equipment	5 years
Vehicles	5 years

 

(Ord. 3-19-2014, passed 3-19-2014)