Resolution 4452 - Fixed Assets Policy1899
RESOLUTION NO. 4452
A RESOLUTION ESTABLISHING A POLICY FOR THE CAPITALIZATION OF FIRED
ASSETS.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF aCALISPELL,
MONTANA, AS FOLLOWS:
SECTION I. Fixed Assets shall be capitalized in
accordance with the following:
All purchased fixed assets are valued at cost where
historical records are available and at estimated
historical cost where no historical records exist.
Donated fused assets are valued at their estimated fair
market value on the date received. The costs of normal
maintenance and repairs that do not add to the value of
the assets or extend asset lives are not capitalized.
Improvements are capitalized and, in the proprietary
funds, depreciated over the remaining useful lives of the
related assets.
General fixed assets are not capitalized in the funds
used to acquire or construct them. Instead, capital
acquisition and construction are reflected as
expenditures in governmental funds, and the related
assets are reported in the general fixed assets account
group. Assets in the general fixed assets account group
are not depreciated.
Public domain or infrastructure fixed assets are excluded
from the general fixed assets account group. Public
domain or infrastructure assets include roads, bridges,
curbs and gutters, streets and sidewalks, drainage
systems, lighting systems and similar assets that are
immovable and of value only to the governmental unit.
Therefore, the purpose of stewardship for capital
expenditures is satisfied without recording these assets.
Fixed assets purchased or acquired by proprietary fund
types are recorded in the individual fund making the
purchase. Any fixed assets donated specifically for an
enterprise fund are also recorded in that individual
fund. Depreciation has been provided for the property,
plant and equipment of the proprietary funds using the
straight line method. The useful lives of these assets
have been estimated as follows:
Buildings 20-50 years
Improvements Other than Buildings 10-50 years
Machinery, Vehicles, and Equipment
With a Value Greater Than $2000
And Greater than a Five Year Life
Excluding Computer Equipment 5-20 years
Computer Equipment 3-5 years
Water & Sewer Lines, Pump Stations 10-50 years
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, MONTANA, THIS 15TH DAY OF MARCH, 1999.
Lim 2 B66eski
Wm. 8
Mayor
ATTEST:
Theresa White
Clerk of Council