The city will capitalize land purchases or donations as follows:
(A) The City Clerk-Treasurer's bookkeeper will capitalize all land purchases with original or estimated historical costs of $5,000 or greater. Original cost of land will include the full value given to the seller, including relocation, legal services incidental to the purchase (including title work and opinion), appraisal and negotiation fees, surveying and costs for preparing the land for its intended use (contractor's costs, demolition of buildings, excavation, clean up and inspection).
(B) The City Clerk-Treasurer's bookkeeper will record donated land at the market value at the time of donation excluding surveying costs and associated legal fees.
(C) Land purchases made using federal or state funding will follow the funding source guidelines and the above capital asset policy.
(D) Exceptions to land capitalization are land purchased outright as easements, or right-of-ways to infrastructures.
(Ord. 1-C-05, passed 2-22-05)