Capitalization Policy

WHEREAS, Nashville Public Library, Washington County, Illinois believes it to be in the best interest to establish a capitalization policy for accounting purposes and compliance with the Governmental Accounting Standards Board Statement 34. 

NOW THEREFORE, BE IT ORDAINED BY the Board of Trustees of Nashville Public Library, Washington County, Illinois that for the purposes of the Governmental Accounting Standards Board Statement 34, the following capitalization policy is established. 

SECTION 1:  The minimum capitalization amount for individual equipment is $2,500, for buildings and improvements is $10,000, and for infrastructure assets (roads, bridges, culverts, curbs, sidewalks, lighting systems, gutters, and drainage systems) is $50,000. 

SECTION 2:  The cost of maintenance will be expensed. 

SECTION 3:  The costs for infrastructure will be capitalized and depreciated on a prospective basis beginning in Fiscal Year 2005. 

SECTION 4:  The following depreciation methods are established: 

                    Appliances – 5 years, straight line

                    Tools – 5 years, straight line

                    Equipment – 7 years, straight line

                    Vehicles under 13,000 gross vehicle weight – 5 years, straight line

                    Vehicles 13,000 gross vehicle weight – 7 years, straight line

                    Other Improvements – 20 years, straight line

                    Buildings – 40 years, straight line

                    Road Improvements – 10 years, straight line

                    New Infrastructure – 40 years, straight line 

Passed by the Board of Trustees of the Nashville Public Library this day of September 6, 2005.

Reviewed and passed by the Board of Trustees of the Nashville Public Library this day of November 4, 2008. 

Revised and passed by the Board of Trustees of the Nashville Public Library this day of March 6, 2012.    

Reviewed and passed by the Board of Trustees of the Nashville Public Library this day of January 6, 2015.