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<br />156 values. <br />157 <br />158 Replacement Cost– In today’s dollars, the cost to replace the asset. If it is expected the retired asset <br />159 will have a salvage value, the estimated salvage value should be deducted from the expected <br />160 replacement cost. <br />161 <br />162 Asset Life – The number of years which the asset is in use, also known as the useful life of a capital <br />163 asset. The following chart shows the useful life by asset type: <br />164 <br />Assets Years <br />Buildings40 <br />Building Improvements25 <br />Furniture and Equipment5 <br />Light Vehicles5 <br />Heavy Vehicles10 <br />Fire Trucks20 <br />Streets and public infrastructure50 <br />Utility distribution systems80 <br />165 <br />166 <br />167 Bonding – The amount of debt incurred to obtain capital assets. <br />168 <br />169 Capital Asset Maintenance – Expenditures which protect the City’s investment in capital assets and <br />170 provide for ongoing upkeep. <br />171 <br />172 Equipment – A tangible capital asset which does not qualify as a vehicle, building, street, or park <br />173 asset. Examples are mowers, tools, etc. <br />174 <br />175 MSA Capital Allocation – Municipal State Aid is money the city receives from the State to help pay <br />176 for maintenance of MSA-designated streets. MSA streets are collector or arterial streets that <br />177 interconnect to other cities or major thoroughfares. <br />178 <br />179 Enterprise Fund – A separate accounting and financial reporting mechanism for municipal services <br />180 which are primarily fee supported. Examples are Water, Sewer, and Golf Course. <br />181 <br />182 General Governmental Fund – A separate accounting and financial reporting mechanism for spending <br />183 in which a property tax is generally levied. Examples are police, fire, streets, parks and recreation. <br />184 <br />185 Enterprise Fund System Asset – Assets which support enterprise services such as water, sewer, and <br />186 golf course. <br />187 <br />188 Park System Asset – All assets within city parks excluding buildings. Examples would be trails, <br />189 equipment, and courts. <br />190 <br />191 Implementation <br />192 The City shall use replacement funds to assist in the replacement of equipment, vehicles, and capital <br />193 building maintenance. New equipment or buildings are to be funded from new dollars, unless they are <br />194 designated to replace currently owned assets. Funds may be used up to the amount of the replacement <br />195 funds set aside for that particular asset. Any additional funding shall be from new sources. <br />196 <br />Page 5 of 5 <br />Qbhf!54!pg!231 <br /> <br />