(A) Capital assets purchased for use in governmental activities shall be recorded as expenses in governmental funds at the time of purchase.
(B) Enterprise funds assets will be capitalized based on this policy.
(C) Governmental and enterprise capital assets shall be recorded in the government-wide financial statements, offset by accumulated depreciation.
(D) Capital assets shall be valued at actual or estimated historical costs, while donated capital assets shall be valued at their fair market value on the date donated.
(E) Equipment valued at or above $10,000, buildings and improvements valued at or above $20,000, land improvements and infrastructure valued at or above $20,000, land of any value, and assets that appreciate in value valued at or above $10,000 shall be capitalized.
(F) Depreciation shall be calculated on assets other than land using the following estimated useful lives:
(1) Equipment:
(a) Furniture: 7 years;
(b) Major appliances: 7 years;
(c) Computers, office equipment: 5 years;
(d) Other equipment: 5 years;
(e) Vehicles: 5 years;
(f) Park and recreation features: 12 years; and
(g) Playground equipment: 12 years.
(2) Buildings:
(a) New construction: 40 years; and
(b) Improvements: 15 years.
(3) Land improvements: 15 years.
(4) Infrastructure:
(a) Roads, paved surfaces: 15 years; and
(b) Bridges: 50 years.
(G) Infrastructure will be accounted for on a prospective basis beginning May 1, 2004.
(H) A group purchase of assets shall be treated under this policy at the total cost.
(I) Carpeting will be expensed as installed or replaced.
(J) Roofing costs will be depreciated depending on whether the useful life of the roof is extended by the roofing cost.
(K) Assets that appreciate in value, such as collectibles or art, will not be depreciated.
(L) The straight line method shall be used over the estimated useful life of assets.
(M) The applicable convention shall be the half-year convention.
(Ord. 05-33, passed 9-12-05)