(A) To be considered a capital asset for financial reporting purposes, an item must at the time of acquisition, be valued for accounting and financial reporting purpose at a unit value greater than or equal to $10,000 ($5,000 if funded through a federal grant). All vehicles are to be included and capitalized regardless of acquisition value. This increased capitalization threshold is to be to be applied prospectively starting January 1, 2020.
(B) Assets shall remain as part of the property record until they are retired, sold, traded, or otherwise disposed of regardless of their net book value amount.
(C) Changes in capitalization threshold are applied prospectively and some items below any new threshold will remain until fully depreciated and removed when they are retired from service.
(D) The capitalization threshold for the following classes of assets shall be:
(1) Land: n/a.
(2) Improvements to land: $25,000.
(3) Buildings: $50,000.
(4) Furnishings and equipment and vehicles: $10,000.
(5) Federal grant furnishings and equipment: $5,000.
(6) Computer software: $10,000.
(7) General infrastructure: $100,000.
(8) Water and sewer utility infrastructure: $100,000.
(9) Construction in progress: n/a.
(E) All land, including rights-of-way, shall be capitalized at the time of acquisition. If donated, it shall be recorded at its acquisition value. All vehicles regardless of historical cost or acquisition value will be capitalized.
(Ord. 2020-19, passed 11-10-2020)