RESOLUTION # 13-01:

A RESOLUTION ADOPTING POLICIES FOR CAPITALIZATION AND DEPRECIATION OF ASSETS

WHEREAS, the Governmental Accounting Standards Board (GASB) has released Statement No. 34 (GASB 34; and

WHEREAS, GASB 34 requires all capital assets, including infrastructure assets, be reported in a statement of net assets at historical costs, net of accumulated depreciation; and

WHEREAS, accumulation depreciation for general fixed assets was not reported un the previous reporting model, and it is necessary for the City of Sodaville to adopt policies for the capitalization and depreciation of City of Sodaville assets in order to enable compliance with the GASB 34;

NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SODAVILLE:

I. All assets with a useful life of at least one year and a total cost, or donated value, of $5,000 or more (including installation costs, if any, and associated professional fees) shall be capitalized and depreciated using the straight-line method of depreciation based on the useful life of the asset in question as reflected on Exhibit “A” attached hereto and made a part hereof for all purposes.

II. Expenditures that extend the useful lives of capital assets beyond their initial estimated useful lives (preservation costs) or that improve their efficiencies (improvements) or increase their Capacity (additions) shall be capitalized in accordance with these policies.

III. This Resolution shall be effective immediately. The Mayor and the City Administrator are authorized to do all things necessary and proper to evidence the Council’s adoption of the Resolution and to carry out the intent hereof.