Page 413 - Fort Worth City Budget 2019

Capital Assets Policy

expense using the straight-line method:

Annual Depreciation = Cost – Salvage Value
Asset Useful life (in years)

Salvage value is an estimate of the amount that will be realized at the end of useful life of
a depreciable asset. The City may assume that salvage value will be insignificant and
therefore, will not use it in the depreciation calculation.

Asset must be depreciated according to the useful life guidelines established by the City.
These guidelines are summarized below:

 Buildings: 20 - 40 years
 Infrastructure: 20 - 60 years
 Machinery and Equipment: 2 - 20 years
 Vehicles; 4 – 8 years
 Runways and Taxiways: 20 - 30 years
 Water and Sewer Equipment: 5 - 30 years
 Water and Sewer Infrastructure: 25 - 60 years
The following capital assets are not depreciated:

 Land

 Intangible assets with indefinite useful lives
 Construction Work in Progress

XI. Retirement

All capital assets that are sold, exchanged, traded in, donated, stolen, damaged beyond
repair or in any way removed from service and disposed of during the current fiscal
period should be recorded as retirements in the PSAM system.

When retiring an asset, the Department that had custody of the asset must complete and
submit an Asset Retirement Form to the Capital Assets Team. The Asset Retirement
Form should be properly approved by the Department with electronic signature and date
on the form.

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