(A) The minimum capitalization amount for individual equipment, buildings and improvements, and for infrastructure assets (roads, bridges, culverts, curbs, sidewalks, lighting systems, gutters, and drainage systems) is established at $10,000.
(B) The cost for maintenance will be expensed.
(C) The costs for infrastructure will be capitalized and depreciated on a prospective basis beginning in Fiscal Year 2015-2016.
(D) The following depreciation guidelines are established:
Classification | Method | Useful Life |
Machinery and equipment | Straight line | 5 years |
Buildings and structures | Straight line | 20 years |
Infrastructure | Straight line | 40 years |
Other improvements | Straight line | 20 years |
(E) This policy shall be applied to the Fiscal Year 2015-2016 audit and each year thereafter. This policy supersedes any capitalization policy previously adopted by the Village Board.
(F) The Village Board designates the Finance and Budget Committee with the responsibility for the oversight of capital assets in accordance with the provisions that are contained in this policy.
(Res. 2015-12-07A, passed 12-7-2015)