CC Resolution 9881
RESOLUTION NO. 9881
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
APPROVING AN INCREASE IN THE FIXED ASSET CAPITALIZATION
THRESHOLD AND COUNCIL POLICY MANUAL SECTIONS 2.13 and 2.14
WHEREAS, the City of Campbell has a set of financial policies that have been
approved by the City Council; and
WHEREAS, one of those policies states the City will comply with standards of
accounting and financial reporting of the Government Finance Officers Association
(GFOA), a nationally recognized organization that promotes accountability in the public
sector through excellence in accounting, auditing and financial reporting; and
WHEREAS, the GFOA has made a recommendation for municipalities to increase
their capitalization thresholds; and,
WHEREAS, the City desires to maintain consistency with said standards;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Campbell hereby approves modifying the fixed asset capitalization threshold to $2,500 and a
minimum two-year expected asset life with an increase to $5,000 in conjunction with
implementation of GASB 34, effective July I, 2002, and:
BE IT FURTHER RESOLVED that the City Council of the City of Campbell
hereby approve the attached modifications to Council Policy Manual Sections 2.13 and 2.14
reflecting these changes.
PASSED AND ADOPTED this Nineteenth day of June, 2001 by the following roll
call vote:
AYES: Councilmembers:
Furtado, Kennedy, Burr, Watson, Dean
NOES: Councilmembers:
None
ABSENT: Councilmembers:
None
APPROVED:
~.~~
M ew T. Dean, yor
ATTEST:
CL~
Anne Bybee, City Clerk
Attachment 2
Proposed Changes to Council Policy Manual Sections 2.13 and 2.14
2.13 Machinery and Equipment (Definition): +hat mMachinery and equipment shall be defined
as movable personal property, suffi including, but not limited to, as furniture, machines,
teel5, vehicles, radios and communications devices, t46-:- computers and equipment with an
expected useful life of at least two years and a cost fJI machinery and equipment shall
have a unit cost exceeding $500.00 in excess of $2,500 increasing to $5,000, effective July
I, 2002, in conjunction with implementation of GASB 34.
2.14 Machinery and Equipment (Identification): +hat aAll items of equipment shall be
identified by a numbering system under the control of the Finance Department.
Equipment, such as vehicles, or fire equipment, etc. which have departmental numbering
systems may use these numbers for inventory purposes. These numbers when assigned
shall be promptly furnished to the Finance Department for inventory control purposes.