(A) Capital assets are stated at historical cost or, in some instances, estimated historical cost. Donated capital assets, donated works of art or similar items, and any capital assets received in service concession arrangements are reported at acquisition value. Major outlays for capital assets and improvements are capitalized as projects, are constructed. The cost of normal maintenance and repairs that do not add to the value of an asset or materially extend the asset’s life is not capitalized.
(B) With few exceptions, an asset’s cost should also include necessary costs incurred to place the asset in service. Costs include the invoice price plus incidental costs (insurance during transit, freight, capitalized interest, duties, title search, registration fees, installation costs, professional fees, excavation, fill, grading, drainage, clearing, relocation, reconstruction, expenses for remodeling or reconditioning, legal fees, inspections, permits, installation of HVAC, plumbing, or electrical wiring, fencing, irrigation systems, paths and trails, athletic field turf and the like). Exceptions include interest expenses associated with deferred payments and real estate taxes paid, if any, in the acquisition of property.
(Ord. 22-44, passed 10-24-2022)