(A) Valuation. Capital assets are recorded at historical costs which includes any ancillary charges necessary to place the asset into its intended location and condition for use. Ancillary charges include, for example, freight and transportation charges, site preparation costs, and professional fees. Engineering costs (internal and external) include related preliminary project and environmental studies, project estimating, design, planning (drawings and specifications), construction engineering, construction management, construction inspection and project payment. Donated capital assets are recorded at their estimated fair market value at the time of acquisition.
(B) Depreciation schedule. Capital assets have estimated useful lives extending beyond a single reporting period (one year) and are depreciated using the straight line method with no allowance for salvage value. The estimated useful lives for capital assets are as follows:
(1) Land: non-depreciable.
(2) Buildings: 50 years.
(3) Non-building improvements: 15 years.
(4) Machinery and equipment: five years.
(5) Vehicles:
(a) Cars: five years.
(b) Light trucks: eight years.
(c) Heavy trucks: 15 years.
(6) General infrastructure:
(a) Roads: 50 years.
(b) Bridges: 75 years.
(c) Outdoor Lighting: ten years.
(7) Software: five years.
(C) Retirements. Retirements apply to all capital assets including land, buildings, machinery and equipment, vehicles and general infrastructure. When an asset is disposed, scrapped, sold, subject to demolition, and the like, it is to be removed from the property record and the appropriate reduction will be made to historical cost, accumulated depreciation, and net book value amounts. Retirements will reflect the actual historical cost of the asset when the amount is ascertainable. When historical cost is not ascertainable, an estimated historical cost will be determined by the Clerk-Treasurer.
(Ord. 2022-01, passed 2-14-2022)