FY 2026 Adopted Budget - Flipbook - Page 109
Capital Improvement Policy
The City develops a five-year capital improvement plan every year. The plan is updated each year
during the annual budget process and is incorporated into the City’s Comprehensive Plan.
In the development of the Capital Improvement Plan, the City will review the operational impact of each
project.
Capital Asset Policy
Purchased and constructed capital assets are reported at cost or estimated historical cost. Capital
assets include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks)
and similar items. They are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. Property, plant, and equipment with an initial,
individual cost equal to or exceeding $5,000 with useful lives of over one year are recorded as capital
assets. Roads, bridges, and sidewalks are capitalized when their initial costs equal or exceed $25,000
and they have an estimated useful life of more than one year. Subscription Based Information
Technology Agreements (SBITA) or software with an initial cost of equal to or exceeding $50,0000
are capital assets. Capital assets are recorded at historical or estimated historical costs. Donated
capital assets are recorded at the acquisition value at the date of donation. Significant outlays for
capital assets and improvements are capitalized as projects are constructed. Interest incurred
during the construction phase of capital assets of major business-type activities is included as part of
the capitalized cost of the assets constructed. Capital asset purchases are recorded as capital outlay
expenditures at the fund level in the year of acquisition.
Property, plant, and equipment are depreciated using the straight-line method over the following
estimated useful lives:
Assets:
Useful Life:
Land Improvements
15-40 years
Buildings
10-40 years
Infrastructure
15-40 years
Equipment
3-40 years
Software
3-10 years
Expenditures for repairs and maintenance are expensed when incurred. Additions, major repairs or
replacements that increase the useful life of the asset are capitalized.
The City complies with the standards established by the Governmental Accounting Standards Board
Statement (GASB) Statement 34 and all subsequent pronouncements set forth by GASB regarding
Capital Asset Accounting.
Fund Balance Changes Between FY 2025/26 Projected and Proposed Budgets
Table 20 demonstrates the differences in fund balances between Projected and Proposed budgets
major and nonmajor funds in aggregate.
The total revenue increased between FY 2025/26 by less than 1% and the total expense increase of
15.31%. The total change in fund balance is $1,789,431 or 1.51% fund balance decrease.
Personnel Services projected expenditures for all funds is increased by 5% COLA and $1,000 flat pay
to all existing full-time employees. Fringe benefits and pensions are increased as well.
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