Ordinance - #16-12 - 11/07/2016 - Laserfiche WebLink

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5.8 Employee Expense Reimbursement Employee expense forms are required for reimbursement to employees of city -related expenses on a bi-monthly basis. All employee expense forms must contain proper account codes, department approval, and detailed receipts must be attached where applicable. Section 6: Capital Outlay and Fixed Assets 6.1 Capitalization Threshold Capital outlay purchases are for items costing more than $10,000, are a tangible asset, and have a life expectancy of more than one year. These items must be included in each department budget. It should be noted that sales tax (if applicable) must be included as a cost of the item purchased when determining if the purchase is a capital outlay item. If the individual purchase is greater than $10,000 includes (General Government and Enterprise Fixed Assets) the item is a capital outlay purchase and now should become a recorded fixed asset. The amount to record for that fixed asset would be any charge "to place the asset in its intended location and condition for use." For example: if the city were to purchase a street vehicle, all of the following would be considered part of the cost of that asset: the vehicle, warning lights, decals, sales tax, licensing and any other costs to put the asset into its usable condition. Capital outlay purchases less than $10,000 are inventory assets. Example of inventory assets: Computers, printers, furniture, cameras. SECTION 7. SUMMARY The following is the official summary of Ordinance # 16-12 which has been approved by the City Council of the City of Ramsey as clearly informing the public of the intent and effect of the Ordinance. The Ordinance Repeals the existing City Code Division 2 - Purchasing Sections 2-272 through 2-278 and replaces it with a new division 2 — Purchasing. This division is adopted pursuant to and under the authority of section 6.4 of the City Charter. SECTION 8. EFFECTIVE DATE The effective date of this Ordinance is thirty (30) days after its passage and publication, subject to City Charter Section 5.07. Adopted by the Ramsey City Council the 7th day of November, 2016. Mayor 9