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CITY OF PEQUOT LAKES <br /> CAPITAL ASSETS AND SURPLUS PROPERTY POLICY <br /> Adopted: 2-7-06 <br /> Amended: 1-2-18 <br /> Capital Asset <br /> A capital asset is any item or property that has a value of$2,500 or more per asset and a <br /> life expectancy of greater than one year. All other items or property is considered surplus <br /> property. <br /> The classes of capital assets will be: land, buildings, infrastructure, improvements (other <br /> than buildings), vehicles, and equipment. Construction in Progress will be recognized as <br /> an asset but is not eligible to be depreciated until the project is completed and/or asset is <br /> transferred to the city. Repairs andlor maintenance expenditures will be capitalized if the <br /> remaining useful life of the asset is extended by more than 25%. <br /> Thresholds applied to capitalized assets will be at least $2,500. <br /> Donations of capital assets from an individual or entity are recorded at estimated fair <br /> market value at the date of acquisition for purposes of capitalizing the asset. <br /> Depreciation is the allocation of the cost of a depreciable capitalized asset over its <br /> estimated useful life. Straight line depreciation %2 year convention, will be the method <br /> used to allocate the cost on a monthly basis. Land, easements and construction in <br /> progress are not considered depreciable assets. The determination of useful life was made <br /> utilizing the following tables. <br /> CAPITAL ASSET USEFUL LIFE TABLE <br /> TYPE YEAR <br /> Air Bag Rescue Kit 10 <br /> Air Compressor 5 <br /> Air Conditioner Unit 15 <br /> Alarm Svstem 10 <br /> ATV 5 <br /> Backflow Device 20 <br /> Backhoe 20 <br /> Blower—snow 7 <br /> Books 10 <br /> Broom—angle 7 <br /> Buildings 28 <br /> Camera—Thermal Imaging 5 <br /> Camera—Video 8 <br /> Computer 5 <br /> Computer Software 5 <br /> Copy Machine 7 <br /> Defibrillator 10 <br /> Dog—K9 7 <br /> - 1 - <br />