(A) A department will capitalize buildings at full cost with no subcategories for tracking the cost of attachments. Examples of attachments are roofs, heating, cooling, plumbing, lighting or sprinkler systems or any part of the basic building. The department will include the cost of items designed or purchased exclusively for the building.
(B) A department’s new building will be capitalized only if it meets the following conditions:
(1) The total cost exceeds $5,000; and
(2) The useful life is greater than two years.
(C) A department improving or renovating an existing building will capitalize the cost only if the result meets all of the following conditions:
(1) The total cost exceeds $5,000;
(2) The useful life is extended two or more years; and
(3) The total cost will be greater than the current book value and less than the fair market value.
(D) Capital building costs will include preparation of land for the building, architectural and engineering fees, bond issuance fees, interest cost (while under construction), accounting costs if material and any costs directly attributable to the construction of a building.
(E) A department will record donated buildings at fair market value on the date of transfer with any associated costs.
(F) Purchases made using federal or state funding will follow the source funding policies and above procedures.
(Ord. O-C-97-8, passed 11-3-1997)