2598-A_00001RESOLUTION NO.2598-A
A RESOLUTION INCREASING THE CAPITALIZATION(CAPITALOUTLAY)THRESHOLD
RECITALS:
1.Due to inflationary increases over the last several years,the capitalization (Capital Outlay)thresholdshouldbeincreased.Thischange willsave departmental staff timebecause ofa reduction insome recordkeepingandaccounting.
2.The present capitalization thresholdof $1,000should be revised.
O 3.Although the capitalization thresholdis changed,theremay continue to be other accountabilityrequire-ments which include record keeping necessary for insurance purposes.
RESOLVED:
1.Ifthe totalcost of an item,including freight and sales tax,which meets the criterianecessary to beconsideredasacapitaloutlayitem,itshall be capitalizedinthe appropriate fixed asset accounts ofeachofthecity'sfunds ifthe value is equal to orgreater thanthe following amounts:
Land ..00
Machinery,Equipment,Furniture,etc.5,000.00Water/Sewer Infrastructure 10,000.00StreetsandSidewalkinfrastructure50,000.00
2.Beginning withtheAccounting Year 2003,present fixed assets with a cost of $4,999,99orless shallberemovedfromthefixedassetaccounts(capitalizedassets)of allfunds in the city.
3.Beginning with theAccounting Year 2003,items that are considered small and attractive,regardless of
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