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contacting Waste Management to see if they would be willing to offer the free garbage service to <br />the Hockey Arena. Councilmember Hendriksen stated that if the intention was to receive free <br />garbage service for the Hockey Arena, it should have been documented. <br /> <br />Councilmember Anderson questioned if the free garbage service was or was not included in the <br />bid. <br /> <br />Mayor Gamec stated that he was only explaining the situation that was presented from ACE in <br />the past. <br /> <br />Administrative Services Manager Hottinger reviewed past trash hauling and recycling bills and <br />stated that the City will save quite a bit of money by getting a new contract. <br /> <br />The Finance Committee directed staff to select the lower bid from Waste Management. <br /> <br />Administrative Services Manager noted that staff would contact the companies to advise that a <br />request to continue service with the City's current hauler will be placed on the July 27, 1999 <br />Council Agenda. <br /> <br />Case #1: Establishment of Capitalization Threshold for Fixed Assets <br /> <br />Finance Officer Lund stated that in the public sector, the term "fixed assets" typically is used to <br />refer to land, buildings, equipment, and improvements other than buildings acquired by a <br />government for use in the provision of goods or services to citizens. Not all fixed assets are <br />required to be reported on a government's balance sheet. Specifically, fixed assets with <br />extremely short useful lives and fixed assets of small monetary value are reported as an <br />"expenditure" or "expense" in the period in which they are acquired. Those fixed assets that are <br />reported on the balance sheet are said to be "capitalized." The monetary criteria used to <br />determine whether a given fixed asset should be reported on the balance sheet is known as the <br />"capitalization threshold." Ms. Lund explained that the Government Finance Officers <br />Association recommends that local govemments consider the following guidelines in <br />establishing thresholds for their fixed assets: <br /> <br />1. Fixed assets should be capitalized only if they have an estimated useful life of at least <br /> two years following the date of acquisition. <br /> <br />2. Fixed assets' capitalization thresholds should be applied to individual fixed assets <br /> rather than to groups of fixed assets (ex: desk, tables). <br /> <br />3. In no case should a government establish a capitalization threshold of less than <br /> $1,000 for any individual item. <br /> <br />4. Governments should exercise control over their noncapitalized fixed assets by <br /> establishing and maintaining adequate control procedures at the department level. <br /> <br />Finance Committee/July 13, 1999 <br /> Page 2 of 9 <br /> <br /> <br />