The City will capitalize building purchases or donations as follows:
(A) The City Clerk-Treasurer's bookkeeper will capitalize all buildings with original or estimated historical cost of $5,000 or greater. Security systems, alarm systems, and standby emergency power generators and improvements to land (parking lot, sidewalk, lot lighting) shall be included in the building value if the item is installed at the time of building construction.
(B) Capital building costs will include architectural fees, engineering fees, legal services fees, construction management costs, interest costs during construction, bond issuance fees and any other fees directly attributable to building construction.
(C) For improvements or renovations to buildings the cost will only be capitalized if the total cost is $5,000 or greater. Replacement of a building roof, heating or cooling system and other building features shall be capitalized when the cost of the item is $5,000 or greater.
(D) The City Clerk-Treasurer's bookkeeper will capitalize donated buildings using market value at the time of donation.
(E) Building purchases made using federal or state funding will follow the funding source guidelines and the above capital asset policy.
(F) Normal department operating activities regarding buildings such as feasibility studies, preliminary engineering, and design will be expensed rather than capitalized.
(Ord. 1-C-05, passed 2-22-05)