HomeMy WebLinkAbout2002-185 CCRMember Kay Lasman introduced the following resolution and moved its
adoption:
RESOLUTION NO. 2002-185
RESOLUTION ESTABLISHING CAPITALIZATION AND DEPRECIATION
POLICY FOR ASSETS HELD BY THE CITY
WHEREAS, the City is required under Governmental Accounting and Standards
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Board (GASB) pronouncements to record and account for fixed assets in accordance with approved
City polices and within certain Internal Revenue Service (IRS) regulations; and
WHEREAS, the City has maintained a record of such assets under a policy that has
established a capitalization threshold established at an acquisition cost of $1,000 per item and
various useful life options ranging from two to ninety-nine years; and
WHEREAS, with the implementation of GASB 34 it will be required that all fixed
assets be capitalized and accounted for in the fund that provided financing for asset acquisition and,
should be credited with the value of that asset; and
WHEREAS, Deloitte and Touche has recommended that the City adopt a policy that
more closely reflects the useful life and value threshold for City held assets; and
WHEREAS, the City has reviewed options regarding the value threshold and useful
life.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Brooklyn Center that the following Fixed Asset Capitalization and Depreciation Schedule is hereby
adopted and is effective upon adoption.
FIXED ASSET CAPITALIZATION AND DEPRECIATION SCHEDULE
Asset Catesorv
Value Threshold
Land improvements $ 25,000
(parking lots, sidewalks, fencing)
Buildings/Building improvements $ 50,000
(excludes furnishings)
Furniture and furnishings $ 10,000
Technology equipment $ 10,000
(computers, communication systems, printers)
Motorized Vehicles $ 10,000
(squad cars, pickup trucks, mowers)
Heavy equipment $ 25,000
(plow trucks, fire trucks, loaders, graders)
Infrastructure improvements $250,000
(water, sewer, storm sewer, street lights, streets)
RESOLUTION NO. 2002-185
Asset Tvpee
Non-infrastructure
Furniture and furnishings
Computer hardware
Communication equipment
Motor Vehicles
Cars and light trucks
Fire trucks
Heavy duty trucks
Examines
Useful Life
Desks, tables, chairs 5 years
Monitors, CPU's, printers 3 years
Telephone systems, radio systems 10 years
5 years
15 years
10 years
Motorized equipment
Heavy construction equip Dozers, loaders, graders 10 years
Grounds Maintenance Mowers, tractors and attachments 15 years
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Other equipment
Improvements
Buildings
Infrastructure
Water systems
Sewer systems
Storm Sewer systems
Street Light systems
Traffic control systems
Streets
December 9, 2002
ate
ATTEST: 1Qd 1~_
City Clerk
Recreation equipment, custodial 10 years
equipment, engineering equipment
Parking lots, sidewalks, fences 25 years
Buildings, park shelters 25 years
Trunks, mains, towers, pumps 25 years
Trunks, mains, lift stations 25 years
Trunks, mains, ponds 25 years
Street lights 15 years
Signal lights 15 years
Paved 25 years
Mayor
The motion for the adoption of the foregoing resolution was duly seconded by member
Bob Peppe
and upon vote being taken thereon, the following voted in favor thereof:
Myrna Kragness, Kay Lasman, Ed Nelson, Bob Peppe, and Tim Ricker;
and the following voted against the same: none;
whereupon said resolution was declared duly passed and adopted.