(A) Schedule. The city uses the following estimated life schedule for its capital assets:
Capital Asset Type | Estimated Life (Years) |
Capital Asset Type | Estimated Life (Years) |
Land | |
Land acquired | Capitalized only/not depreciated |
Easements acquired | Capitalized only/not depreciated |
Buildings | |
Buildings acquired | 50 or fewer years since built |
Building design and construction | 50 |
Building improvements | 25 |
Building components (HVAC systems, roofing) | 20 |
Improvements | |
Parks and recreation facilities (playground, shelters) | 10—20 |
Leasehold improvements | Useful life of asset or lease term (whichever is shorter) |
Land improvements-structure or groundwork (athletic fields, parking lots, fencing, landscaping) | 20 |
Infrastructure | |
Drainage | 50 |
Streets | 50 |
Curb and gutter | 40 |
Gateway enhancement and streetscape | 25 |
Bridges and tunnels (road bridges) | 40 |
Bridges and tunnels (pedestrian bridges) | 30 |
Sidewalks | 30 |
Traffic signals | 35 |
Streetlights | 25 |
Equipment | |
Furniture, fixtures | 20 years |
Office equipment (Copiers, scanners and the like) | 5 years |
Vehicles* | 5—10 years (based on use or warranty) |
Machinery | 5—15 years (based on use or warranty) |
Grounds equipment (mowers, tractors, attachments) | 15 |
Computer hardware | 3—10 |
Computer software | 3—10 |
Security cameras | 10 |
* Fire apparatus expected life is up to 15 years | |
(B) Capital leases. Some capital assets are acquired and owned by the city but the full acquisition price may not be immediately paid in full. Leased equipment should be capitalized if the lease agreement transfers ownership of the property to the lessee by the end of the lease term, or the present value of the minimum lease payments at the inception of the lease (excluding executory costs) equals at least 90% of the fair value of the leased property. The payments may occur over multiple years. For these types of purchases, each payment will be expensed. Leases that do not meet the criteria are considered operating leases.
(C) Construction in progress. Construction is progress (CIP) is an asset account that represents the temporary accumulation of costs, such as labor, materials, equipment and any ancillary charges directly attributable to the construction of the project. Once the asset is complete and placed into service, the costs are classified in the appropriate capital asset category. This concept would be the same for buildings, infrastructure or internally generated assets.
(D) Exceptions. Exceptions are:
(1) Items costing less than the limits described which are permanently installed as a part of the cost of original construction or installation of a larger building or equipment unit will be included in the cost of the larger unit;
(2) Modular equipment added after original equipment construction of a larger building or equipment unit which may be put together to form larger units costing more than the prescribed limits will be charged to capital assets even though the cost of individual items is less than such units; and
(3) Cabinets, shelving, bookcases and similar items, added after the original construction, which are custom-made for a specific place and adaptable elsewhere, will be capitalized.
(Ord. 22-44, passed 10-24-2022)