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A RESOLUTION DEFINING CAPITAL ASSET AND SETTING GUIDELINES FOR ITEMS TO BE CHARGED TO A CAPITAL ACCOUNT IN THE CITY OF JONESBORO, ARKANSAS
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WHEREAS, at the recommendation of the Finance Director, the City Council finds it in the best interest of the City to define capital assets and to set guidelines for items to be charged to a capital account;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF JONESBORO, ARKANSAS:
Section 1: Capital asset, also referred to as a fixed asset, is hereby defined as an asset of a durable nature, which is expected to be used for a period greater than one year, and includes such assets as land, land improvements, including infrastructure, buildings, equipment, furniture, tools, etc., but capital assets do not include computer software;
Section 2: Historical cost is hereby defined as the usual basis for valuing fixed assets, and is measured by the cash price of obtaining the asset and getting it ready for its intended use;
Section 3: The purchase price, freight, sales tax, and installation costs are considered part of the cost of fixed assets;
Section 4: Assets acquired by gift are valued at their fair market value or appraised value on the date of acquisition;
Section 5: A record of assets having a purchase price or fair market value of $1,500 or more will be maintained in the City=s finance fixed asset inventory. All lower values will be maintained and inventoried by each Department and/or Department Head.
PASSED AND APPROVED this 6th day of March, 2007.