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Commission adopts updated capital asset policy, raises threshold to $10,000
Summary
Gallatin County commissioners adopted a revised capital asset policy April 8 that raises the county's capitalization threshold from $5,000 to $10,000 and updates lease accounting to align with recent GASB guidance; the policy will be applied retroactively to July 1.
The Gallatin County Commission on April 8 adopted an updated capital asset policy to align county accounting with recent Governmental Accounting Standards Board (GASB) guidance.
Chief Financial Officer Justine Swanson told the commission the primary change raises the county’s capitalization threshold from $5,000 to $10,000 and clarifies treatment of technology-related leases and other asset categories (for example, buildings retain a higher threshold, noted Swanson). The policy will be applied retroactively to July 1 so the county maintains a consistent threshold for the fiscal year; county controller Jay Bates will adjust records accordingly.
Why it matters: Raising the capitalization threshold changes how the county classifies and records equipment and technology as capital assets versus expenses. That can affect the county’s asset inventory, depreciation schedules and internal tracking, though it does not change operating budgets by itself.
Discussion and vote: Swanson outlined the changes, noting controller staff had begun preparatory work. The commission received no public comment on the policy and voted to adopt the resolution (cited in the meeting as Resolution 2025-031). Swanson said Jay Bates will retroactively adjust asset records.
Next steps: Controller staff will reconcile asset records to the new $10,000 threshold and update capital asset listings for the fiscal year beginning July 1.
