§ 7-8. Fixed assets

(a) Fixed assets for general governmental purposes shall be accounted for in the general fixed assets group of accounts and shall be recorded as expenditures by the acquiring governmental fund when purchased. Fixed assets in enterprise funds shall be capitalized and depreciated using the straight line method over their estimated useful life.

(b) Fixed assets purchased shall be recorded at cost and donations at fair market value at the date of acquisition.

(c) Detailed fixed asset records shall be maintained by the city treasurer. All assets shall be affixed with numbered decals and mobile equipment shall have stenciled or painted numbers that are legible from a distance of 15 feet.

(d) Interest incurred during construction periods shall be capitalized.

(e) Maintenance and repairs shall be expensed, unless they significantly prolong the life or increase the value of an asset, in which case the costs shall be capitalized as an addition to the original asset.

(f) Upon disposal of an asset, the accounts shall be relieved of related cost and accumulated depreciation, and resulting gain or loss shall be reflected in income.

(g) The sale of all city-owned fixed assets with an estimated value of $100.00 or more requires a public auction or bidding advertised in the news media at least one week prior to the sale. The city administrator must approve the sale of all fixed assets with an estimated value up to $10,000.00, and the city council must approve the sale of all fixed assets valued at $10,000.00 or over.

(Code 1979, § 1-7008; Ord. of 8-18-80)