(A) This section shall outline generally accepted accounting procedures to record and account for the capital assets of the city and its agencies, offices, and operating departments.
(B) This policy shall apply to all assets of the city government and shall be complied with by all employees, officials, agencies, offices, and departments of city.
(C) The capital assets for the city shall be recorded and accounted for according to the following principles:
(1) Both tangible and intangible assets will be capitalized using the following criteria:
(a) Land assets will always be capitalized, will be capitalized without regard to cost, and will not be depreciated;
(b) Infrastructure will be capitalized if it has a life expectancy of five years or greater and a designated value exceeding $100,000; and infrastructure acquired after July 1, 2003 will be recorded as capitalized if it meets the criteria for capitalization;
(c) Assets other than land or infrastructure, including leases on assets, will be capitalized if the asset or lease interest has a useful life of five years or more and a designated value exceeding $5,000; and
(d) Assets which are acquired with grant funding or other committed revenues and which do not meet the criteria for capitalization will nonetheless be capitalized whenever the appropriate city official determines it to be necessary or advisable.
(2) All capitalized assets shall be recorded and inventoried on forms established by the appropriate city official and periodic physical inventories will be required. The separate agencies, departments, and offices shall maintain recorded and physical inventory of assets in its possession which have a cost of $1,000 and over. Assets with a value of less than $1,000 shall not be inventoried.
(3) Capitalized assets, other than land, will be depreciated using the straight-line depreciation method.
(4) Capitalized assets will not be written off from the records or accounts of the city until the asset is disposed of physically.
(5) (a) All capital assets will be depreciated on a straight-line basis over the estimated useful life of the asset.
(b) The following guidelines shall be followed.
BLD | Buildings | 480 months |
CEQ | Communications equipment | 84 months |
FIX | Fixtures and furniture | 84 months |
IMP | Improvements other “t” | 180 months |
MEQ | Machinery and equipment | 60 months |
OEQ | Office equipment | 60 months |
PAV | Paving | 300 months |
SID | Sidewalks | 360 months |
TEQ | Transportation equipment | 60 months |
(6) All capital assets shall be recorded in appropriate fixed asset inventory records and shall be verified by physical inspection at once every year.
(Ord. 718-04, passed 1-10-2005)