4.15.070 Depreciation of general fixed assets.
All assets shall be depreciated using the straight line method of depreciation. The district shall use the IRS Publication 946, Table of Class Lives and Recovery Periods, or as such publication is updated, modified, or amended, to determine the life of acquired assets. The estimated life of district assets at the time of acquisition is set forth below:
|
Computer Software |
3 |
years |
|
Office Equipment, Electrical |
5 – 7 |
years |
|
Office Furniture, Fixtures, and Equipment, Nonelectrical |
10 |
years |
|
Shop Tools |
10 |
years |
|
Telemetry/SCADA |
10 |
years |
|
Vehicles |
10 |
years |
|
Lift Station, Electrical and Mechanical |
20 |
years |
|
Lift Station Structures |
30 |
years |
|
Water Pump Equipment |
40 |
years |
|
Wastewater Services |
50 |
years |
|
Wastewater Concrete Mains |
50 |
years |
|
Wastewater Cast Iron, Ductile Iron, and PVC Mains |
75 |
years |
|
Reservoir Structures and Improvements |
75 |
years |
|
Water Cast Iron, Ductile Iron, and PVC Mains |
75 |
years |
General fixed assets shall begin depreciation in the year in which they are purchased. However, if the asset is not placed into service immediately, depreciation should begin when the asset begins to lose value. These options should be applied consistently and should be reasonable in the circumstance.
Routine repair and maintenance costs will be expensed as they are incurred and will not be capitalized. Major repairs will be capitalized if they result in betterments/improvements to the district’s capital assets. To the extent that a project replaces the “old” part of a capital asset, outlays will not be capitalized; and to the extent that the project is betterment/improvement, outlays will be capitalized. [Res. 796 § 1 (Exh. 1), 2020; Res. 755 § 8, 2018; Res. 720 § 8, 2016.]