§ A302-5. Fixed asset inventory valuation and capitalization criteria.

A. 

It will be the responsibility of the Administration Department to value fixed assets based on generally accepted accounting principles.

B. 

For fixed assets that are purchased, cost will be based on the invoice plus additional costs of preparing the asset for use. Trade-in values will not be used to reduce the carrying cost of the new asset.

C. 

Assets purchased under a lease or installment method should be valued at the discounted present value of total payments. Additional costs will include those necessary so the asset is ready for use.

D. 

For assets acquired by donation, cost will be fair value on date of gift and any costs of preparing assets for use.

E. 

Property acquired under eminent domain will have a cost determined by the court plus any additional attorney fees, costs associated with preparing land for intended use.

F. 

The cost for assets acquired by forfeiture/seizure are based on the fair market value on date of forfeiture/seizure and additional cost associated with preparing the asset for intended use.

G. 

For all fixed assets, the additional costs of preparing the asset for intended use includes, but is not limited to, the following:

(1) 

Land. Legal fees, appraisal and negotiation fees, surveying fees, site preparation costs, demolition of unwanted structures and damage payments;

(2) 

Buildings and improvements. Architect fees, legal fees, appraisers, costs of fixtures, damage claims, insurance premiums, interest and related construction costs;

(3) 

Machinery, equipment and furniture. Transportation charges and installation costs;

(4) 

Motor vehicles. Transportation charges, painting and installation of additional equipment;

(5) 

Park improvements. Physical improvements to park land that are not removable or do not increase the value of the land will not be capitalized, including trails, parking areas, grading, aglimed surfaces, drainage pipes, etc. Removable, replaceable fixtures or buildings such as fencing, play equipment and picnic shelters will be capitalized.

H. 

It will be the responsibility of the Department Head to inform the Administration Department of any additional cost associated with an asset.

I. 

January 1, 2004, asset listing were complied based on a physical inventory taken by the Administration and Department Heads, enterprise fixed assets listing were reconciled to audit work papers. Values were determined as follows:

(1) 

If traceable to audit work papers, historical cost or for contributions, fair market value at the time received.

(2) 

If not traceable to audit work papers:

(a) 

Historical cost from City records.

(b) 

Land will be valued at county assessed value at January 1, 2004.

J. 

Assets acquired December 31, 2003, or earlier had a minimum valuation of $1,000 to be considered a fixed asset.