(A) A department will capitalize buildings at full cost with no subcategories for tracking the cost of attachments. Examples of attachments are roofs, heating, cooling, plumbing, lighting and sprinkler systems or any part of the basic building.
(B) A department’s new building will be capitalized only if it meets the following conditions:
(1) The total cost exceeds $10,000; and
(2) The useful life is greater than five years.
(C) A department improving or renovating an existing building will capitalize the cost only if the result meets all of the following conditions:
(1) The total cost exceeds $10,000;
(2) The useful life is extended two or more years; and
(3) The total cost will be greater than the current book value and less than the fair market value.
(D) Capital building costs will include the preparation of land for the building, architectural and engineering fees, bond issuance fees, interest costs while under construction, account costs of materials and any cost directly attributable to the construction of the building.
(E) A department will record donated buildings at fair market value on the date of transfer, plus any associated costs.
(F) Purchases made using federal or state funding will follow the source funding policies and the procedures in divisions (A) through (E) above.
(Ord. 2019-13, passed 12-3-2019)