Page 241 - Saginaw FY20 Annual Budget

Excerpt from the City Council Meeting of the City of Saginaw held at the City Hall on
September 2, 2003

ITEM 15 CONSIDERATION OF APPROVAL OF CAPITALIZATION POLICY (CC-0903-12)

Asst. City Manager Johnson stated that the Governmental Accounting Standards Board has
implemented new accounting standards that now apply to the City. The main effect of their
Statement No. 34 is the way the city capitalizes and reports assets. The City's Capitalization
Policy was adopted last and the auditors have had a chance to study the new requirements and
have recommended some changes to the policy. They recommended that the $1,000 minimum
for reporting an expenditure as a capital asset be changed to $5,000. They also recommended
showing depreciation on infrastructure based on the suggested useful life for each category
shown on the attached chart. ACM Johnson stated that these changes have been incorporated
into the attached documents and recommended approval as presented.

Motion was made by Mayor Pro Tem Brinkley and seconded by Councilmember Bevill to
approve the Capitalization Policy as presented. Motion carried.

For: Mayor Robbins, Mayor Pro Tem Brinkley, Councilmembers Bevill, Sedberry,
Davis, Crowell

Against: None

Absent: Councilmember Flory

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