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Council adopts updated fixed capital asset policy to align with GAAP and GASB
Summary
Council unanimously adopted a revised fixed capital asset policy that clarifies asset classifications, capitalization thresholds and inventory requirements; staff said about 70 assets and over $2 million in land have been added to FY25 financials under the policy.
The City Council adopted an updated fixed/capital asset policy intended to align the city's financial procedures with GAAP and GASB standards.
Finance staff (Speaker 10) summarized the policy's scope: definitions and classifications of capital assets, capitalization thresholds for each classification, rules for donated and constructed assets, work‑in‑progress accounting, and annual inventory requirements. Staff said the policy was distributed to staff, comments were incorporated into the packet version, and the policy will be used in closing fiscal year 2025 audits.
As an example of the policy's effect, staff said the city identified and capitalized more than $2,000,000 of land and added about 70 assets to the FY25 financial statements. The finance presenter said these changes should improve audit readiness and make future debt issuance and market presentations cleaner.
Councilmember (Speaker 2) moved to adopt the fixed capital asset policy as presented. The motion carried on a unanimous voice vote (6–0).
