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General fixed assets are tangible, nonconsumable items including, but not limited to: land, buildings, machinery, equipment, titled motor vehicles, titled trailers, and certain planning documents owned by the district. The value of the fixed asset includes the purchase price plus sales tax, as well as costs to acquire shipping and handling, installation, design, permitting, and other equipment or accessories needed for the asset to serve its intended function. Improvements to an existing asset that extend the life of the asset are capitalized and depreciated over the remaining useful life of the related asset. The general fixed asset types, their valuation thresholds and capitalization thresholds, are provided as follows:

(1) Buildings, equipment, machinery, water and sewer mains, pipes, pumping equipment and lift stations with a purchase cost of greater than $5,000 shall be a general fixed asset and capitalized over their respective useful life.

(2) The costs of preparation, processing and adoption of water and sewer comprehensive plans and other planning documents, that exceed $5,000, shall be a general fixed asset and capitalized over their respective useful life.

(3) The original purchase or design costs of a software program, with a purchase price of greater than $5,000, shall be a general fixed asset and capitalized over its respective useful life. The general manager may determine, on a case-by-case basis, the general fixed asset status and capitalization threshold of any rewrite, code improvement, or upgrade of an existing software program with a purchase price or cost greater than $5,000.

(4) All land purchased by the district shall be considered a general fixed asset but not capitalized over its useful life.

(5) All titled motor vehicles and trailers purchased by the district shall be a general fixed asset and capitalized over their respective useful life.

(6) New water meters, water service, and hydrants included as a component part of a district capital project or included as a component part of a donated water system by a developer (bill of sale) has been considered as part of the capital project/donated system and depreciated with the respective infrastructure. New water meters or water service with a value of less than $5,000 shall not be considered a capital asset. Water meter, water services, and hydrants that are replacing existing infrastructure shall be expensed. [Res. 796 § 1 (Exh. 1), 2020; Res. 755 § 2, 2018; Res. 720 § 2, 2016.]