HomeMy WebLinkAbout96-028 - ResolutionsRESOLUTION NO. 96-028
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA ESTABLISHING A NEW DEFINITION OF
FIXED ASSETS
WHEREAS, On November 4, 1987, the City Council of the City of Rancho
Cucamonga California, adopted Ordinance No. 328, thereby adding Chapter 3.08 to the Rancho
Cucamonga Municipal Code pertaining to purchasing; and
WHEREAS, policies and procedures have been established through this adoption.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Rancho
Cucamonga, California, as follows:
SECTION 1. The above recitals are all true and correct.
SECTION 2. For the purpose of maintaining accountability for specific City assets
in Section 14.10 of the Purchasing Manual, this Council does hereby adopt the following
revised definition:
POLICY
Under generally accepted fixed asset accountability requirements there are three types of
equipment as defined below: 1) capital outlay items; 2) high risk items, and 3) controlled equipment.
PROCEDURE
Capital outlay is an expenditure for the acquisition of equipment, furniture or City personal property
with an original cost of $1,000 or more, or that is of a "relatively permanent" nature.
The definition of fixed assets (capital expenditure)
1. Tangible in nature;
2. Value of $1,000.00 or more;
3. Useful life greater than one year;
4. High risk/controlled equipment.
Resolution No. 96-028
Page 2
Those items of $1,000.00 or more are considered capital outlay expenditures.
Because the purchase of a capital item can be made from many fund accounts, please
check with the Finance Division for the proper expenditure account number prior
to issuance of a purchase requisition.
Types of costs to be included in the original cost are:
1. Original unit price;
2. Freight or other carriage charges;
3. Sales, use and transportation taxes;
4. Installation costs.
Examples of some types of capital outlay items are:
1. Office equipment;
2. Office furniture;
3. Automotive shop equipment;
4. Tools and construction equipment;
5. Communications equipment;
6. Motor vehicles;
7. Etc.
Items not meeting any of the above criteria will be considered to be a maintenance and support
item.
For further information regarding fixed assets, please refer to Finance Division Procedures.
Controlled equipment constitutes those items which by their value, nature and variety of uses
should be specifically accounted for and inventorled periodically. Examples of such items include
cameras, calculators, small office equipment and/or furniture, small tools and/or construction
equipment, with an individual cost ranging from $50 to $1,000.
SECTION 4. The City Clerk shall certify to the adoption of this Resolution.
Resolution No. 96-028
Page 3
AYES:
NOES:
ABSENT:
PASSED, APPROVED, AND ADOPTED this 21st day of February, 1996.
Alexander, Biane, Curatalo, Gutierrez, Williams
None
None
ATTEST:
I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify
that the foregoing Resolution was duly passed, approved, and adopted by the City Council of the
City of Rancho Cucamonga, California, at a regular meeting of said City Council held on the 21st
day of February, 1996.
Executed this 22nd day of February, 1996, at Rancho Cucamonga, California.