Shrewsbury board adopts higher threshold for fixed assets, modernizes language

The City of Shrewsbury Board of Aldermen on a unanimous vote approved a resolution to increase the city's fixed-asset capitalization threshold and modernize related terminology in the policy.

City staff said the current policy classifies any purchase above $500 as a fixed asset and that raising the threshold to $5,000 would prevent small-dollar items such as chairs and copy-machine supplies from being treated as capital assets. "We're just trying to stop the things that are not really fixed assets, but because they have been [over the monetary threshold]," a staff member told the board.

The staff presentation noted other non-substantive updates to modernize wording (for example, replacing the old term "duplicating machine" with "copy machine") and said the change is intended to reduce the number of low-value items appearing on the fixed-asset report. Staff estimated only a small number of items ("a couple," 2 to 3) would be affected at any given time and said they retain discretion to classify any item as a fixed asset when appropriate.

Board members asked about timing and audit treatment. A staff member said the policy change would not retroactively change fixed-asset reporting for prior fiscal years and that the city plans a single larger adjustment in the FY 2025 audit process to address accumulated items and depreciation. The resolution was moved, seconded and approved with an aye vote.

The board chair said the item was a public hearing this evening and that final passage would be handled at the next meeting as part of the ordinance/adoption process. The vote on the resolution took place during the meeting and the motion passed.