General capital assets should be classified in the appropriate account code to indicate the type of fixed asset owned and the source of the monies from which the general capital assets were acquired.
The general capital assets should be classified by type within the following major classifications and depreciated or amortized over the indicated estimated useful lives:
| Land | no depreciation |
| Land Improvements | 12-30 years |
| Land Preparation-Roads | no depreciation |
| Land easements-Intangible | 20 years |
| Buildings | 12-60 years |
| Machinery and Equipment | 4-30 years |
| Library Books | no depreciation |
| Computer Software-Intangible | 10-12 years |
| Construction in Progress | no depreciation |
| Infrastructure | 20-75 years |
Capital Projects Fund revenues are accrued from the following sources:
- General Obligation bonds
- Federal grants
- Other financing agreements
- General Fund revenues
- Special Revenue Fund revenues
- Donated general capital assets
Improvements and renovations will be recorded within the capital asset system as a capital asset addition if they meet the following criteria:
- The renovation costs more than $100,000
- It occurs when 75% or more of the estimated useful life of the component has expired
- It extends the useful life of the component being renovated
The original component being renovated will be retired if the actual cost of the renovation is 75% or more of the current replacement cost of the component being renovated.
Renovations are projects performed on already existing components while improvements are the addition of a new component where one did not previously exist.
To be considered a general fixed asset, an improvement must:
- Cost over $100,000
- Have a useful life of two years or more
Software is capitalized when the costs exceed $1 million.
Guide to Financial Operations
REV. 01/01/2017