Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Commerce council adopts formal capital asset policy
Summary
The City of Commerce council voted to amend its financial policies to add a formal capital asset policy setting a $5,000 capitalization threshold and a five-year minimum life expectancy, following an auditor recommendation.
The City of Commerce City Council voted to amend its financial policies to include a formal capital asset policy, specifying a $5,000 capitalization threshold and a minimum five-year useful life.
Assistant City Manager for Financial Services Miss Campbell told the council the change was requested by the city's new auditors so the council would have a formally adopted threshold to use for capitalizing assets. “Our current threshold is $5,000 and a life expectancy of at least 5 years,” Miss Campbell said.
The item was presented as an amendment to the city’s existing financial policy packet so the capital asset rules are incorporated into the single policy book the council receives each adoption cycle. Campbell said the change reflects work the finance team has done in recent years to stop capitalizing low-cost items (she cited earlier practices such as depreciating inexpensive items over long lives) and to formalize thresholds the city uses in practice.
There was no public comment. A motion to approve the amended resolution adding the capital asset policy passed by voice vote; council members responded “aye” and the mayor declared the motion carried. The meeting record did not show a roll-call tally.
Council staff said the policies will be reviewed annually within the city’s standard policy-adoption schedule.
The council’s action updates the city’s financial policy packet to include the capital asset definitions, thresholds and depreciation life guidance and will be applied when staff prepare year-end financials and audits.
