§ 34.204 DEPRECIATION METHODS AND SALVAGE VALUE.
   (A)   Depreciation represents the recognition of the cost of an asset over time by calculating its estimated loss in value during each year. Generally, at the end of the asset's life, the sum of the amounts charged for depreciation in each year (accumulated depreciation) will equal the original cost less salvage value.
   (B)   The salvage value of an asset is the value it is expected to have when it is no longer useful for its intended purpose. The town assumes a salvage value of $0 but may evaluate on an asset-by-asset basis.
   (C)   The town depreciates the majority of its capital assets using the straight-line method. Under this method, the same amount of depreciation is deducted from the value of an asset every year for its useful life. The town takes the full year of depreciation of a capital asset in the year of acquisition and recognizes no salvage value (book value of a capital asset after all depreciation has been fully expensed). Land and Construction in Progress are capital asset categories that are not depreciated. Construction in Progress assets become another category of assets once the asset is substantially ready to be placed in service.
    (D)   The town depreciates its infrastructure capital assets using the group or composite methods of depreciation. The group or composite methods of depreciation apply a single straight-line depreciation rate and average useful life to the calculation of depreciation for a group of assets.
    (E)   Estimated Useful Lives.  
       (1)   Land - N/A
      (2)   Buildings and Building Improvements - 50 years.
      (3)   Land Improvements (parking lots, athletic fields/courts, swimming pools, fencing, etc.) - 20 years.
      (4)   Vehicles (pool, police, ambulances, etc.) - 6 years.
      (5)   Fire Apparatus - 15 years.
      (6)   Heavy Mobile Equipment - 12 years.
      (7)   Grounds and Outdoor Equipment (mowers, tractors, attachments, playground equipment, etc.) - 15 years.
      (8)   Drones/Small Aircraft - 6 years.
      (9)   Boats/Water Transportation - 10 years.
      (10)   Infrastructure (roads, streets, curbs, and sidewalks) - 50 years.
      (11)   Infrastructure (traffic components) - 25 years.
       (12)   Infrastructure (water, wastewater, and storm water systems) - 50 years.
(Ord. 54-2022, passed 12-19-2022)