Page 408 - Fort Worth City Budget 2019

Capital Assets Policy

Improvements other than buildings (land improvements) is used for permanent (i.e.,
non-moveable) improvements, other than buildings, that add value to the land, but do
not have an indefinite useful life. Examples include, fences, retaining walls and parking
lots.

B. Buildings

All permanent structures are included in the classification of buildings. The costs of
an improvement (or betterment) is normally added to the cost of the related structure,
rather than being treated as a separate asset. The same is true of restoration costs
following a capital asset impairment. Capitalization of costs related to buildings
include, but are not limited to, the following:

 Original contract price of the asset acquired or cost of design and
construction
 Expenses incurred in remodeling, reconditioning, or altering a purchased
building to make it available for the purpose for which it was acquired
 Expenses incurred for the preparation of plans, specifications, blueprints,
etc.
 Cost of building permits
 Payment of noncurrent taxes accrued on the building at date of purchase, if
payable by purchaser
 Architects’ and engineers’ fees for design and supervision
 Costs of temporary facilities used during the construction period

C. Infrastructure

Infrastructure assets are long-lived capital assets that normally are stationary in nature
and normally can be preserved for a significantly greater number of years than most
capital assets. Examples include roads, bridges, tunnels, drainage systems, water and
sewer systems, dams and lighting systems.

D. Machinery and equipment

This classification includes construction and maintenance equipment, office equipment
and furnishings, etc. Capitalization of equipment costs include but are not limited to,
the following:

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