Res. #03-71 - Revisions to Capital Expenditure Policy

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expenditures from non-budgetary accounts (i.e., refunds and reimbursements, trust and agency, etc.) 5. Budl!:eted Expenditure: Refers to line item budget accounts as finally approved by the city council. 6. Emerl!:encv Situation: Any situation where an expenditure normally requiring city council approval must be made in order to maintain the health and safety of city employees, or when the delay of the expenditure would cause substantial interruption or decrease in city operations or delivery of needed services. 7. Depreciation Depreciation is the process of aIlocating the cost of an asset over the periods that asset is used for its intended purpose. 8. Improvements Improvement costs are related to significantly extending the useful life, increasing capacity, or improving the efficiency of capital assets. Costs that do not meet these criteria would typically be classified as repair or maintenance costs and would not be capitalized. 9. Contributed Capital Contributed capital assets are assets acquired through contribution or donation from an outside source. Examples would typicaIly include developer contributed assets, such as streets, street lights, sidewalks, water and sewer mains, trails, ponds, parks and park equipment, storm drainage systems, etc. Any other donated or contributed asset meeting the definition of capital asset under this policy could also be considered contributed capital. Exan1ples might include, but are not limited to donated vehicles, equipment, buildings or furniture. PROCEDURES 1. Approval: Appropriate approval for all capital and general expenditures must be obtained, including department director approval and final approval by the City Administrator. In addition, the following approval procedures apply: 3