(A) To be considered a capital asset for financial reporting purposes, an item must be at or above the capitalization threshold and have a unit historical cost of $10,000 or more.
(B) The capitalization threshold for the following classes of assets shall be as follows:
(1) Machinery, equipment and vehicles: $10,000.
(2) Buildings and building improvements: $100,000.
(3) General infrastructure improvements: $200,000.
(4) Computer software: $50,000.
(C) With regard to improvements, buildings and general infrastructure, a capital outlay must be significant and increase capacity, increase efficiency or extend the asset's estimated useful life beyond the original expectation.
(D) A change in capacity increases the level of service provided by the asset. A change in efficiency increases the level of service without increasing the size of the asset or the change maintains the same level of service at a lower cost. An extended estimated useful life involved a significant alteration, structural change, or improvement.
(E) All land, including rights-of-ways, is capitalized at the time of acquisition regardless of historical costs or fair value if donated.
(Ord. 2022-01, passed 2-14-2022)