Policy sets depreciation guidelines

Thursday, October 10, 2013

McCOOK, Nebraska -- The McCook City Council approved new policy for the city Monday evening establishing depreciation practices for city assets. The new "Fixed Asset Capitalization Policy" was drafted by city staff and intended to improve inventory management of city items with a life in excess of one year and value more than $5,000.

The policy states a straight line depreciation method will be used for city assets and attaches a depreciation life, determined by seven categories. For depreciation purposes, vehicles, office and computer equipment will have a life of 3-5 years; roads will have a life of 10-30 years; building improvements are set at 15-30 years; water and sewer lines are set at 50-75 years; and buildings will have a life of 40-60 years.

The policy also adds definitions of repairs and improvements, for fixed asset purposes. Repairs will be defined as expenditures that keep property in ordinary operating condition and do not add value or prolong the life of an asset.

Improvements will be defined as expenditures that prolong the life of an asset, increase its value, or adapt it to a different use.

The policy was approved without comment from city staff or councilors and was back dated to October of 2012.

Other items on Monday's consent and regular agenda;

* A supplemental agreement between the city and W Design Associates for engineering services pertaining to a road improvement project on East 7th-Seminole and East H Street to Park Avenue project was approved. The agreement included additional tasks requested by the Nebraska Department of Roads and will increase the overall cost of the project by $2,725. The city will be required to utilize $545 in sales tax funds to cover their additional match responsibility.

* An ordinance repealing the creation of a Volunteer Service Award Benefit Program for active volunteer firefighters, rescue squad and emergency responders was approved. The change stems from the city shifting from a volunteer fire department to a paid on call structure, according to the meeting agenda.

* Councilors approved proclamations designating Oct. 6-12, 2013, as Fire Prevention Week and the month of October 2013 as Domestic Violence Awareness Month.

* The police department was approved to add two vehicles, a camper, and various other surplus items to the list of items to be sold at public auction. The vehicles added include a 1997 Ford Ranger and a 1999 Saturn SL1. The camper is a 1979 fifth wheel camper. The date of the city's annual public auction has not yet been released by city staff.

* City removal procedures for snow and ice were approved. The procedures are reviewed and approved by council on an annual basis.

* McCook National Bank was authorized to close the alley between Norris Avenue and West First Street, from West B to West C, on Oct. 26, 2013, for their annual Halloween Haunted Bank Tour.

* The McCook Area Chamber of Commerce was granted special liquor licenses for mixers at Red Willow Aviation on Oct. 30, 2013, and Wagner Chevrolet on Oct. 16, 2013.

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