1633RECITALS:
RESOLUTION NO.1633
A RESOLUTION INCREASING THE CAPITALIZATION (CAPITAL OUTLAY)
THRESHOLD
1. Dueto inflationary increasesoverthe last several years,the capitalization (Capital Outlay)
threshold should be increased. This change will save departmental stafftime because of a
reduction in some record keeping and accounting.
3.
The presentcapitalization threshold of $250 should be Increased to $500.
Although the capitalization threshold is changed,there may continueto be other accountability
requirements which include record keeping necessary for insurance purposes.
4. Inadditionto the increase inthe capitalization threshold precipitated because of an increase in
inflation,this change will aid the Equipment RentalFundto better utilize its resources. Withthis
change, fixed assets inthe Equipment Rental Fundwhich had a cost of $499.99 or less,except
for radios and associated electronic equipment,will be transferred to the specific city
departments which primarily utilizethe equipment.Fixed Assets in the Equipment Rental Fund
other than radios and associated electronic equipment is described as rolling stock (moveable
items with wheels)or portable items which utilize internal combustion engines.
RESOLVED:
1. Ifthe total cost of an item,including freight and sales tax,which meets the criteria necessary to
be considered as a capital outlay item is $500 or more,it shall be capitalized in the General
Fixed Asset records of the city.
2. Beginning with the accounting year 1992 all present fixed assets in the Equipment Rental Fund,
with a cost of $499.99 or less,except for radios and associated electronic equipment,shall be
transferred to the city departments which primarily utilizesaid equipment.New purchases of
equipment in the class as described in Recital Section #4 shall be included in the individual
budgets of the respective departments requiring the equipment. Beginning in 1992,maintenance
l)of all equipment in the class described in Recital #4 shall be included in the respective budgets
of the departments which utilizesthe equipment.
3. Beginningwith the Accounting Year 1992, present fixed assets with a cost or $499.99or less
shall be removed from general fixed assets (capitalized assets) and shallbe accounted foras
required by the City Manager.
Adopted by the City Council on July 23,1991.
'Mayor Pro Tern £/
Attest:
-inance Director
u