HomeMy WebLinkAboutRES 2006-20 - Board Public
Resolution No. 2006 - 20
POLICY FOR CAPITALIZATION OF FIXED ASSETS
WHEREAS, the Board of Directors of the Truckee Donner Public Utility District wishes to set forth the
procedures to be followed in determining which purchases should be capitalized or expensed in the
year purchased in accordance with generally accepted accounting practices.
NOW, THEREFORE, IT IS HEREBY RESOLVED, that the following procedure be followed in
determining if a purchase meets the necessary requirements for capitalization:
ASSET CLASS MINIMUM COST
Office Equipment $2,500.00
Tools $2,500.00
Equipment $5,000.00
Structures and Land Improvements $7,500.00
Construction and Remodel Projects $7,500.00
All of the following criteria shall also be used:
1. The normal useful life of the item is at least two years from date of purchase.
2. The item has an acquisition cost(including freight and installation)of at least the amounts listed
above in each asset class.
3. The item will not be substantially reduced in value by immediate use.
4. In case of repair, the outlay will substantially prolong the life of an existing fixed asset or
increase its productivity significantly, rather than merely returning the asset to a functioning unit
or making repairs of a routine nature.
5. Land purchases must always be capitalized.
PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District in a
meeting duly called and held within said District on the 2"dday of August, 2006.
AYES: Directors Hemig, Taylor and Thomason
NOES: None
ABSTAIN: Director Sutton
ABSENT: Director Aguera
TRU7 DON R PUBLIC U ILITY DISTRICT
J. Hemig, President
ATTEST22
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Peter L. Holzmeister, District Clerk