HomeMy WebLinkAbout2026-07-06 Resolution 2026-291_Financial Policy, Fixed AssetsTHE CITY OF WAUKEE, IOWA
RESOLUTION 2026-291
APPROVING CITY OF WAUKEE FINANCIAL POLICY — FIXED ASSET POLICY,
OF THE STANDARD ADMINISTRATIVE POLICY AND PROCEDURES MANUAL
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA
WHEREAS, the City of Waukee, Iowa is a duly organized municipality within Dallas
County; AND,
WHEREAS, the Waukee City Council shall approve operating policies and procedures;
AND,
WHEREAS, City staff has presented the City Council with a General Financial Policy —
Fixed Asset Policy, attached hereto as Exhibit A, and recommends approval.
NOW THEREFORE BE IT RESOLVED by the City of Waukee City Council in session
this 6th day of July, 2026, that the City of Waukee Financial Policy — General Financial
Policy, of the Standard Administrative Policy and Procedures anu 1 is hereby approved.
Courtney Clarke, Mayor
ttest:
Rebecca D. Schuett, City Clerk
RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN
Kala Anderson X
Chris Crone X
Rob Grove X
Lori Lyon X
Anna Bergman Pierce X
OA Waukee
THE KEY TO GOOD UVING
Standard Administrative Policy
& Procedures Manual
Title: FINANCIAL POLICY
Section: FIXED ASSET POLICY
Date of Version: July 6th, 2026
Resolution No.: #2026-291
SECTION 1— Policy
It is the policy of the City of Waukee that City assets be properly accounted for and used for
appropriate City uses. The Finance Department, with assistance from all other Departments of
the City, will be responsible for ensuring fixed assets are tagged, inventoried on a regular basis,
and accounted for by fund and asset category. It is the responsibility of City Department
Director's to ensure that proper budgeting and purchasing guidelines are followed and that
fixed assets are adequately controlled and used for appropriate City purposes. All City
Departments are subject to the provisions of this policy.
A. For an asset to be capitalized (recorded and depreciated), its cost must exceed
certain cost thresholds. An asset's cost includes any cost involved with the
purchase of the asset and readying the asset for use. Capitalization thresholds are
set as follows:
Asset Class
Amount
Vehicles, Machinery & Equipment
$10,000
Office Furniture & Equipment
$10,000
Lease Assets*
$10,000
Subscriptions*
$10,000
Land and Right -of -Way
$ -
Land and Building Improvements
$25,000
Buildings
$25,000
Infrastructure
$50,000
*Based on present value of lease or subscription payments.
Financial Policy — Fixed Asset Policy Page1
Asset Class
Estimated Useful Lives
(In Years)
Vehicles, Machinery & Equipment
5-30
Office Furniture & Equipment
3-10
Lease Assets
2-10
Subscriptions
2-5
Land and Building Improvements
20-50
Buildings
40-50
Infrastructure
20-40
In addition, the asset must be tangible in nature and have a useful life of two (2)
or more years.
a. Certain improvements will only be capitalized if they improve or
significantly alter the use, value, or useful life of the asset.
b. In cases where individual assets do not meet the $10,000 dollar threshold,
but exceed the threshold in the aggregate, it shall be reviewed by the
Finance Department and a determination will be made on the materiality
of capitalizing said assets.
c. The threshold for insurance coverage is $5,000 for all assets except land
and right-of-way ($0).
B. A current inventory ledger of capitalized assets will be maintained by the Finance
Department that will include depreciation, cost and useful life.
C. Eligible fixed assets should be depreciated over their estimated useful lives using
the straight-line methodology for depreciating all fixed assets. Depreciation will
begin in the month the asset is placed in services and will be written off evenly
over the useful life of the asset.
D. All departments are responsible for the custody, safekeeping, and maintenance of
the assets belonging to their department. Each department will be responsible
for and will maintain adequate insurance coverage, title security, and license plate
records.
E. All City vehicles and equipment will be assigned an equipment number by the
Equipment Services Department. All vehicles and equipment will be assigned a
budget code by the respective Department for the purpose of accounting for the
assets' operating expenses. A list of assets and their respective budget codes and
equipment numbers will be maintained in the Finance Department.
F. Any disposals, trade-ins, sales, or transfers of any assets should be identified by
serial number, make, model or other identification and reported to the Finance
Department. Disposals of fixed assets will be made in accordance with Iowa State
law, as well as the City's Surplus Property Disposal policy.
Financial Policy — Fixed Asset Policy Paget
G. The Finance Department will periodically select assets at random from the
records, to be inspected and will periodically select assets from a department to
trace to ensure the accuracy and completeness of the ledger.
SECTION 2 — Procedures
The following procedures shall be followed by all City of Waukee Departments.
A. Fixed assets should be acquired in accordance with the City's Purchasing Policy
and the following steps:
a. All capital purchases must comply with the City's procurement policy for
sustainability. Staff should research whether sustainable options exist and
evaluate if the option is operationally viable and calculate the return on
investment. Administration, Finance Department, and department staff
will evaluate the data on a case -by -case basis.
b. Department Director's shall review budget to ensure the requested asset
has been included and approved in the current fiscal year budget. If not
an approved and budgeted item, contact the Finance Director to
determine appropriate action. Criteria to consider for budget amendment
approval includes availability of funds, urgency, and needs of the
Department requesting the asset.
c. The Department making the asset purchase should complete a New Asset
Intake Form, which should include the model number, serial number,
manufacturer, model year, and any other information such as color, size,
weight, etc. that will help identify the asset. The Form should be submitted
to the Finance Department and Equipment Services Department.
d. For vehicles, equipment, and other assets that are maintained through the
Equipment Services Department, the assets should be directed to the
garage prior to being placed into service for numbering, decals and
lettering, and other field preparation work. The Equipment Services
Department will assign the assets a vehicle/equipment number.
e. For assets that require title recording, license plates, and/or insurance
coverage, copies of the acquisition paperwork along with the title transfer
documents and other relevant documentation, should be forwarded to the
Equipment Services Department prior to placing the asset into service.
B. The disposal of all fixed assets should be conducted in accordance with the City's
Surplus Property Disposal policy, and Iowa State law.
C. Asset transfers between departments should be conducted following the City's
Surplus Property Disposal policy.
Financial Policy — Fixed Asset Policy Page3