Agenda - Council - 11/25/2025 - Laserfiche WebLink

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Land Held for Resale - Land acquired with the intent of resale. Infrastructure - Assets with a long life that are usually stationary in nature and last for a significantly greater number of years than most capital assets. Examples include water & sewer mains, drainage systems, roads & streets, bridges, etc. Buildings - Recorded at acquisition or construction cost. Buildings are defined as structures that are permanently attached to the land, have a roof and walls, and are not intended to be mobile. Building components can include land, land improvements, construction, professional fees, permits, utilities and insurance applicable to construction, electric, plumbing, heating & cooling, flooring, and ceilings, roofing, and security. Building Improvements - Improvements that increase the value of a building and/or materially extend the useful life of a building. Examples are replacement roofing, energy conservation materials, & remodeling and replacement of major building components. Machinery & Equipment - Fixed or movable tangible assets used for operations where its use will extend beyond two years from the time it has been placed into service. Examples are vehicles, machinery, lawn mowers, furniture, tools, & public safety equipment. Easements - Easements are defined as the right to a specific use of land or other property although it does not transfer actual ownership of the land. a) Permanent easements are treated the same as land and are not depreciated. b) Temporary easements have a limited life and are amortized over the life of the asset or contract. Donated Assets - Donated assets are recorded at estimated fair market value at the time of the donation. Construction in Progress - Construction in progress assets list the cost of construction work undertaken but not yet completed. Depreciation is not recorded until the asset is placed in service. When construction is completed, the asset is reclassified as building, improvement, etc. and capitalized and depreciated. II. Procedures and Responsibilities Accounting for Capital Assets: Assets are accounted for and reported in the following areas: 1. Governmental -type — Capital assets of this activity type are used by the general city departments that are not accounted for in the enterprise funds. This includes but is not limited to the following funds: General Fund, Economic Development Authority, Equipment Revolving, Public Improvement Revolving and Pavement Management Fund. 2. Business -type: a. Public Utilities Fund - Accounts for all capital assets in the water, sewer, streetlighting, and storm sewer utility systems.