ORD 660 01/11/2005 ORDINANCE 6 6 0
Capital Asset
AN ORDINANCE ESTABLISHING CODE OF ORDINANCE ON CAPITAL ASSETS,
DEFINNING OUTLAYS AND ITEM WHICH WILL BE INCLUDED IN AN INVENTORY
OF CAPITAL ASSETS FOR ALL FUNDS.
WHEREAS staff has been working with the City's auditing firm to update the City's financial
policies, and
WHEREAS the City's auditing firm has recommended defining what constitutes a capital asset at
the City.
NOW,THEREFORE,BE IT ORDAINDED BY THE CITY COUNCIL FO THE CITY OF
CITY,TEXAS:
Capital Assets
1. A Capital Outlay is defmed as expenditures for the acquisition of capital assets. This
includes the cost of the land,buildings,permanent improvement,machinery, large tools,
furniture,and equipment which has a per-unit cost of$10,000 or greater.
2. A Capital Asset is defmed as an item which has a useful life of more than one year
and which has a per-unit cost of$10,000 or greater or,if assemble of many parts or
added items,have a collective value of$10,000 or greater.
3. All Capital Assets will be accounted for in the General Fixed Asset Account Group.
4. The City will maintain these assets at a level adequate to protect the City of Cibolo
capital investment and to minimize future maintenance and replacement cost.
5. Disposal of Capital Assets will follow state guidelines.
PASSED AND APPROVED THIS 11t DAY OF JANUARY,2005.
I
Charles Ruppert
Mayor
ATTEST:
\)Yi(e)tLfiifMn
C Secretary.