(A) Definition. For the purpose of this chapter, the following definition shall apply unless the context clearly indicates or requires a different meaning.
CAPITAL ASSETS are personal property and real property and other assets used in the operations of the government that have an expected estimated useful life beyond a single reporting period.
(B) Categories. Capital assets are to include any item that falls into one of the following categories:
(1) Land;
(2) Improvements to land;
(3) Buildings and building improvements;
(4) Furnishings and equipment;
(5) Vehicles;
(6) Computer software;
(7) General infrastructure; and
(8) Construction in progress.
(C) Asset classification descriptions.
(1) LAND. Includes all land and right-of-way acquired for public use. The amount of capitalization will be the total amount expended in acquiring the land. Donated land will be capitalized at the current fair value or the amount that would have been expended at the time of acquisition.
(3) BUILDINGS and BUILDING IMPROVEMENTS. Structures used in providing governmental services. Costs to be capitalized include construction costs, all fees and professional services that were necessary to complete the structure. Care should be taken to separate, if combined, the cost of the building and land as land is non-depreciable.
(4) FURNISHINGS and EQUIPMENT. Comprised of moveable assets used in providing governmental services that are above the later referenced capitalization threshold of $25,000 on a unit basis.
(5) Vehicles. A transportation conveyance or machine is used to move people or goods.
(6) Computer software. Per the Governmental Accounting Standards Board Statement No. 51 intangible assets including computer software whether internally generated or acquired through a purchased license from a commercially available provider.
(7) General infrastructure. Per the Governmental Accounting Standards Board Statement No. 34 infrastructure assets are long-lived capital assets that are stationary and include roads, bridges, tunnels, drainage systems, water and sewer systems, dams, and lighting systems, and (rights-of-way, sidewalks, traffic signals, and alleys).
(8) Construction in progress. As no benefit is received until an asset is placed into service, building, and building improvements or infrastructure for example are not capitalized or depreciated until government acceptance and placement into use.
(Ord. 21-0055, passed 8-11-2021; Ord. 22-0027, passed 5-11-2022)