Resolution - #04-05-130 - 05/25/2004

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Councilmember Elvig introduced the following resolution and moved for its adoption: RESOLUTION #04-05-130 RESOLUTION ESTABLISHING A CAPITALIZATION THRESHOLD FOR FIXED ASSETS IN THE AMOUNT OF $$,000 WHEREAS, The City of Ramsey adopted a fixed asset threshold for fixed assets in the amount orS1,000 on November 23, 1999; and WHEREAS, The City of Ramsey is required to implement GASB #34 for its Comprehensive Annual Financial Report (CAFR) for year ending 2004; and; and WHEREAS, under the new reporting model, the recording and depreciating of every asset with $1,000 monetary value will be very time consuming, costly and difficult to maintain; and WHEREAS, the recommendation of the City's auditors is that the City create a fixed asset threshold of at least $5,000; and WHEREAS, a separate list should be prepared at department level to record those assets which are under $5,000 and/or have a useful life less than two years, to maintain security and replacement. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RAMSEY, ANOKA COUNTY, STATE OF MINNESOTA, as follows: 1) That Fixed Assets will be capitalized only if they have a monetary value of $5,000 or greater. 2) That Fixed Assets will be capitalized only if they have an estimated useful life of two years or more following the date of acquisition. 3) Capitalization thresholds will be applied to individual fixed assets rather than to groups of fixed assets (ex: tables, chairs). 4) Assets with a monetary value less than $5,000 and/or an estimated useful life less than two years will be monitored and recorded at the department level to maintain security and replacement.