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Council adopts first formal capital assets policy to standardize accounting and depreciation
Summary
The council adopted a new capital assets policy that establishes capitalization thresholds, useful-life schedules and accounting practices for the city's capital inventory; staff said Sedona holds over $220 million in depreciable capital assets and the policy codifies existing practice.
City staff presented and the council adopted the City of Sedona’s first formal capital assets policy to standardize how the city accounts for, manages and depreciates capital assets.
The policy clarifies capitalization thresholds (for example, setting vehicle capitalization at a minimum dollar threshold more consistent with municipal practice), defines asset classes, and sets depreciation lives consistent with Government Accounting Standards Board (GASB) guidance. Staff said the city holds more than $220 million in net capital assets (net of depreciation) and that the policy largely formalizes current accounting practice while providing a clear, documented standard for future asset management and financial reporting.
A council motion to adopt the proposed capital assets policy passed unanimously. Staff said the new policy will improve transparency, ensure consistent treatment of smaller pooled assets (including software and IT equipment) and help with long-term capital planning and audit readiness.
