Chapter 34 FINANCE; CITY FUNDS

(A) Money may be paid out of the City Treasury only on warrant of the City Clerk-Treasurer. Unless a statute provides otherwise, the Clerk-Treasurer may draw a warrant against a fund of the city only if:

(1) An appropriation has been made for that purpose and the appropriation is not exhausted;

(2) The warrant is for a salary fixed by statute or ordinance;

(3) The warrant is for a claim allowed under I.C. 36-4-8-5;

(4) He is ordered to issue the warrant under I.C. 36-4-8-3;

(5) The warrant is for payment of a judgment that the city must pay; or

(6) The warrant is for interest due on city bonds.

(I.C. 36-4-8-2)

(B) A city board or legislative body may order the issuance of warrants for payment of money by the city only at a meeting of the board or legislative body. A city officer who violates this section forfeits his office.

(I.C. 36-4-8-3)

(C) The City Clerk-Treasurer may audit a claim against the city by examining under oath any officer, agent, or employee of the city or any other person. When acting under this division (C) the Clerk-Treasurer has the same powers as the Common Council in summoning and examining witnesses. If the Clerk-Treasurer finds that:

(1) The claim includes an item for which no appropriation has been made;

(2) There is not a sufficient balance for payment of the claim in the proper fund; or

(3) The claim should not be approved for any reason;

he may not issue warrants to pay the claim and he shall notify the proper department of the reasons for his refusal to pay the claim.

(I.C. 36-4-8-4)

(D) (1) Except as provided in I.C. 36-4-8-14, a city board or the Common Council may allow a claim:

(a) Only at a meeting of the board or Council; and

(b) Only if the claim was filed in the manner prescribed by I.C. 5-11-10-2 at least 5 days before the meeting.

(2) A city officer who violates this division (D) forfeits his office.

(I.C. 36-4-8-5)

(E) Except as provided in I.C. 36-4-8-14, a warrant for payment of a claim against the city may be issued only if the claim is:

(1) Supported by a fully itemized invoice or bill under I.C. 5-11-10-1.6;

(2) Approved by the officer or person receiving the goods or services;

(3) Filed with the city fiscal officer;

(4) Audited and certified by the fiscal officer before payment that each invoice is true and correct; and

(5) Allowed by the Common Council or the city board having jurisdiction over allowance of the claim.

(F) The certification by the fiscal officer under subsection (E)(4) must be on a form prescribed by the State Board of Accounts.

(I.C. 36-4-8-7)

(G) (1) This section does not prohibit:

(a) The city works board from making long term contracts for utility services under I.C. 36-9; or

(b) A department from issuing bonds or other obligations authorized by law.

(2) Except as provided in division (3), a city department, officer, or employee may not obligate the city to any extent beyond the amount of money appropriated for that department, officer, or employee. An obligation made in violation of this section is void.

(3) A city department, officer, or employee may obligate the city beyond the amount of money appropriated for that department, officer, or employee if:

(a) The obligation is made under a multi-year interlocal cooperation agreement entered into by the city and 1 or more political subdivisions or governmental entities under I.C. 36-1-7; and

(b) The agreement described in division (a) is approved by the fiscal body of the city.

(4) An obligation described in division (3) may be terminated:

(a) If the city provides notice of the termination of the obligation at least 1 year before the termination of the obligation; or

(b) The city and the political subdivisions or governmental entities that have entered into the interlocal cooperation agreement otherwise agree to the termination.

(I.C. 36-4-8-12)

(1994 Code, § 34.001)

34.002 PAYMENTS ON CERTAIN CLAIMS PRIOR TO BOARD APPROVAL; PREPAYMENT ON CERTAIN CLAIMS WITH BOARD APPROVAL.

(A) The Clerk-Treasurer is authorized to make claim payments in advance of any necessary Board approval for only the following kinds of expenses:

(1) Property or services purchased or leased from the United States government, its agencies, or its political subdivisions;

(2) License or permit fees;

(3) Insurance premiums;

(4) Utility payments or utility connection charges;

(5) General grant programs where advance funding is not prohibited and the contracting party posts sufficient security to cover the amount advanced;

(6) Grants of state funds authorized by statute;

(7) Leases or rental agreements;

(8) Bond or coupon payments;

(9) Payroll;

(10) State, federal, or county taxes.

(B) When necessary, the Clerk-Treasurer is authorized to prepay any expense, prior to the receipt of the applicable goods or services, if prepayment of the expense has been previously approved by the applicable Board in a public meeting.

(D) The Common Council, or the Board of Public Works and Safety, or Board having jurisdiction over the allowance of the claim as outlined above, shall review and allow the claim at its next regular or special meeting following the preapproved payment of said expense.

(1994 Code, § 34.003) (Ord. 92-1567, passed 9-28-1992; Am. Ord. 2014-2082, passed 10-13-2014; Am. Ord. 2016-2104, passed 9-12-2016)

34.003 CAPITAL ASSET POLICY ADOPTED.

A Capital Asset Policy for the city is hereby adopted. All department heads are directed to implement the policies as contained in the Capital Asset Policy. Any additions, modifications, or deletions to the Capital Asset Policy shall be done by an ordinance to amend the Policy and therefore shall require Common Council approval by majority vote.

(1994 Code, § 34.004) (Ord. 2003-1850, passed 12-29-2003)

Cross-reference:

For the provisions of the Capital Asset Policy, see the Appendix to this chapter.

34.004 ELECTRONIC FUNDS TRANSFERS.

(A) The Common Council hereby approves the transfer of funds, both receipts as well as payments, by electronic means. The following payments shall be made by electronic fund transfer:

(1) Payroll;

(2) Federal tax deposits (for example 941 and 945 payments);

(3) State and local withholding tax payments;

(4) Indiana sales tax payments (for example water utility and airport);

(5) Indiana gross income tax estimate payments (for example water and sanitation);

(6) Bond and interest payments (for example water and sewer utilities); or

(7) Any other distributions and payments mandated by federal or state law or local ordinance.

(B) The Clerk-Treasurer is authorized to receive payments by electronic fund transfer for the following:

(1) Motor vehicle highway funds;

(2) Local road and street funds;

(3) Local road and street PL260-1997;

(4) Motor vehicle highway accelerated #1;

(5) Motor vehicle highway accelerated #2;

(6) ABC gallonage;

(7) Cigarette tax - General Fund;

(8) Cigarette tax - CCIF;

(9) COPS grant;

(10) Any other receipt of funds mandated by federal or local law or local ordinance; or

(11) Any other receipt of funds at the discretion of the Clerk-Treasurer and as permitted by federal or state law, or local ordinance.

(C) With regard to the electronic fund transfer (direct deposit) for payroll amounts owed to city employees, the following shall be controlling:

(1) A payroll distribution by electronic fund transfer shall not be divided between 2 different bank accounts and/or 2 different banks.

(2) More than 1 type of distribution may be deposited by electronic fund transfer into a single bank account (for example, full time wages, part time wages, temporary or volunteer wages).

(3) Direct deposits by electronic fund transfer shall be made to the bank of each employee’s choice. However, the employee shall designate only 1 such bank for direct deposit and shall designate the direct deposit into either the employee’s savings account or the employee’s checking account, not both. Each employee may change banks, or may change direct deposit from a savings account to a checking account, or vice versa, only once during each calendar year.

(4) Electronic fund transfer of payroll (direct deposit of payroll) shall be required for all city employees hired after the date of the adoption of this chapter. All current employees as of the date of this chapter shall receive payroll by electronic fund transfer effective no later than November 30, 1999.

(D) The Clerk-Treasurer shall maintain adequate records and documentation of all electronic fund transfer transactions for purposes of public inspection, as well as to be made available for auditing purposes all as provided by I.C. 5-13-5-5 and any other applicable law.

(1994 Code, § 34.005) (Ord. 99-1735, passed 5-10-1999)

34.005 DEPOSITORIES FOR CITY FUNDS.

The city may deposit funds in any depository maintaining a business location within the city, which is listed on the Indiana Board of Depositories’ approved depositories list, as may be amended from time-to-time.

(1994 Code, § 34.006) (Ord. 2000-1771, passed 4-24-2000; Am. Ord. 2012-2047, passed 8-13-2012)

34.006 INVESTMENT OF PUBLIC FUNDS.

(A) The investing officer of the city, pursuant to I.C. 5-13-9-5, is hereby authorized to invest in certificates of deposit of depositories that have not been designated by the local board of finance but have been designated by the State Board of Finance as a depository for deposits under I.C. 5-13-9.5. This authorization expires 2 years after the adoption date.

(B) The investing officer of the city, pursuant to I.C. 5-13-9-5.3, is hereby authorized to invest in certificates of deposit under certain conditions as follows:

(1) The funds are initially invested through a depository that is selected by the investing officer.

(2) The selected depository arranges for the deposit of the funds in certificates of deposit in 1 or more federally insured banks or savings and loan associations, wherever located, for the account of the city.

(3) The full amount of the principal and any accrued interest of each certificate of deposit are covered by insurance of any federal deposit insurance agency.

(4) The selected depository acts as a custodian for the city with respect to the certificates of deposit issued for its account.

(5) At the same time that the city’s funds are deposited and the certificates of deposit are issued, the selected depository receives an amount of deposits covered by insurance of any federal deposit insurance agency from customers of other institutions, wherever located, at least equal to the amount of the funds invested by the city through the selected depository.

(C) The investing officer of the city, pursuant to I.C. 5-13-9-5.7, is hereby authorized to invest in investments having a stated final maturity that is more than 2 years but not more than 5 years after the date of purchase under the following circumstances:

(1) The Common Council shall first adopt an investment policy authorizing the investment of public funds of the city for more than 2 years and not more than 5 years in accordance with I.C. 5-13-9-5.7(a) and (b).

(2) This section and the power to make an investment having a stated final maturity that is more than 2 years but not more than 5 years after the date of purchase expire on the date on which the investment policy expires, which may not exceed 4 years.

(3) At the time an investment of public funds of the city is made having a stated final maturity that is more than 2 years, but not more than 5 years, the total of such investments of the city may not exceed 25% of the total portfolio of public funds invested by the city, including balances in transaction accounts.

(4) An investing officer may contract with a federally regulated investment advisor or other institutional money manager to make such investments.

(Ord. 2013-2062, passed 7-22-2013)

34.007 INTERNAL CONTROL STANDARDS.

The City of Plymouth adopts the Indiana State Board of Accounts Uniform Internal Control Standards for Indiana Political Subdivisions Manual, as expressly written and published by the Indiana State Board of Accounts in September 2015, and as amended from time to time, as its initial policy of Internal Control Standards.

(Ord. 2016-2109, passed 12-27-2016)

34.008 PARKS AND RECREATION FEE PROCEDURES.

(A) Webster Recreational Center and Conservation Clubhouse.

(1) City employees may rent the Webster Center and Conservation Center at half price, still paying the full deposit amount.

(2) Deposit is due 2 weeks after making reservations/signing contract. The full rental amount is due 2 weeks before the event. Deposits shall be applied against any past due bill or fees owed by the depositor to the City of Plymouth.

(B) Miscellaneous.

(1) The Park Board may modify fees at their discretion for certain individuals, groups or nonprofit organizations meeting proper criteria set by said Park Board, and that operate within the corporate limits of the City of Plymouth.

(2) Deposits shall be applied against any past due bill or fees owed by the depositor to the City of Plymouth.

(C) The Plymouth Park Board, in its discretion, may waive all or a portion of the applicable rental fee for government entities and civic organizations that have participated in or contributed to the infrastructure or capital improvements of the Plymouth park system.

(Ord. 2016-2110, passed 12-27-2016)

CEMETERY TRUST FUND ACCOUNT

34.020 ACCOUNT ESTABLISHED.

The Clerk-Treasurer shall establish an account on the books of the city to be known as Cemetery Trust Fund Account, to which account shall be charged all receipts of cash or securities and the accruals thereof from trusts accepted by the Common Council for the care, upkeep and other expenditures in connection with city cemetery lots. Such account shall be credited with all disbursements of such cash, securities and the accruals thereof, together with the amount of any losses that may arise in the disposal of any securities.

(1994 Code, § 34.010) (Ord. 752, passed - -)

Cross-reference:

Cemeteries, see Chapter 93

34.021 DISPOSITION OF FUNDS.

The Clerk-Treasurer shall receive, invest, use and dispose of such funds and securities mentioned in § 34.020 as near as it is possible to be done in accordance with the provisions of each trust. In the absence of definite instructions relative to the investment of any trust funds, the same shall be invested as provided by state law, after approval by the Cemetery Committee of the Common Council.

(1994 Code, § 34.011) (Ord. 752, passed - -)

34.022 REPORTS TO COMMON COUNCIL.

The balance of the special Cemetery Trust Funds Account shall be reported to the Common Council monthly by the Clerk-Treasurer in a financial report as prescribed by the State Board of Accountants.

(1994 Code, § 34.012) (Ord. 752, passed - -)

PLYMOUTH PROMOTIONAL FUND

34.035 CREATION.

The Plymouth Promotional Fund is hereby established. The Common Council is hereby authorized to budget and appropriate funds from the General Fund or from other funds to pay the expenses incurred in promoting the betterment of the municipality.

(1994 Code, § 34.025) (Ord. 1306, passed 8-23-1982)

34.036 FUND EXPENDITURES.

Expenditures from this Fund may include but are not necessarily limited to the following:

(A) Membership dues in local, regional, state, and national associations of a civic, educational or governmental nature which have as their purpose the betterment and improvement of municipal operations;

(B) Direct expenses for travel, meals and lodging in conjunction with municipal business or meetings or organizations to which the municipality belongs;

(C) Expenses incurred in the promotion of economic or industrial development for the municipality, including meeting room rental, decorations, meals and travel;

(D) Commemorative plaques, certificates or objects such as commemorative keys;

(E) Other purposes which are deemed by the Mayor to directly relate to promoting the betterment of the city.

(1994 Code, § 34.026) (Ord. 1306, passed 8-23-1982)

34.037 MAYOR’S APPROVAL REQUIRED.

No expenses shall be allowed from this Fund without prior authorization and approval of the Mayor. Claims for expenses under this section will be allowed as prescribed by law.

(1994 Code, § 34.027) (Ord. 1306, passed 8-23-1982)

POLICEMAN’S PENSION FUND

34.050 CREATION.

The city does hereby elect to establish and create a Policeman’s Pension Fund to be administered by a Board of Trustees of the Policeman’s Pension Fund in accordance with state law.

(1994 Code, § 34.030) (Ord. 985, passed - -)

Cross-reference:

Police Pension Board, see § 33.161

DRUG FREE COMMUNITY FUND

34.065 ESTABLISHMENT; DISPOSITION OF REVENUE; PURPOSE.

(A) There is hereby established a Drug Free Community Fund.

(B) The revenue that goes into the Drug Free Community Fund shall be primarily court user fees received by the auditor of Marshall County and any other grant funds received from any other governmental entity to be used for crime prevention programs, whether in the city or within Marshall County.

(C) The purposes for which the expenditures can be made from the Drug Free Community Fund shall include but are not limited to the following:

(1) Crime prevention programs and educational services;

(2) The body safety program; and

(3) Any program reasonably related to crime prevention programs that have been approved by the Board of Public Works & Safety.

(D) The life of the Drug Free Community Fund shall be perpetual. The Fund balance is of a nonreverting nature, or until such time as a subsequent ordinance is passed and adopted by the Common Council either establishes a shorter duration for the Fund, or converts the Fund to reverting status. If such a subsequent ordinance is adopted, said ordinance shall provide for the disposition of the Fund balance upon termination of the Fund.

(1994 Code, § 34.040) (Ord. 97-1701, passed 7-28-1997)

CUMULATIVE CAPITAL DEVELOPMENT FUND

34.080 CREATION.

There is hereby established a Plymouth Cumulative Capital Development Fund pursuant to the provisions of I.C. 36-9-15.5.

(1994 Code, § 34.050) (Ord. 1343, passed 7-9-1984; Am. Ord. 1410, passed 6-22-1987; Am. Ord. 90-1497, passed 7-11-1990; Am. Ord. 93-1584, passed 7-12-1993)

34.081 AD VALOREM PROPERTY TAX.

(A) An ad valorem property tax levy will be imposed and the revenues from the levy will be retained in the Plymouth Cumulative Capital Development Fund.

(B) The maximum rate of levy under division (A) shall be in such amounts as set from time to time by the Common Council.

(1994 Code, § 34.051) (Ord. 1343, passed 7-9-1984; Am. Ord. 1410, passed 6-22-1987; Am. Ord. 90-1497, passed 7-11-1990; Am. Ord. 93-1584, passed 7-12-1993)

34.082 USE OF FUNDS.

(A) The funds accumulated in the Plymouth Cumulative Capital Development Fund will be used for the acquisition of real property and the construction, enlarging, improving, remodeling, repairing or equipping of a municipal building or buildings and any ancillary use of said funds as provided by I.C. 36-9-16-2.

(B) Notwithstanding division (A) above, funds accumulated in the Plymouth Cumulative Capital Development Fund may be spent for purposes other than the purposes stated in division (A) if the purpose is to protect the public health, welfare or safety in an emergency situation which demands immediate action. Money may be spent under the authority of this division after the Mayor issues a declaration that the public health, welfare or safety is in immediate danger that requires the expenditure of money in said Fund.

(1994 Code, § 34.052) (Ord. 1343, passed 7-9-1984; Am. Ord. 1410, passed 6-22-1987; Am. Ord. 90-1497, passed 7-11-1990; Am. Ord. 93-1584, passed 7-12-1993)

34.083 APPROVAL BY TAX COMMISSIONERS REQUIRED.

This Fund takes effect upon approval of the State Board of Tax Commissioners pursuant to the provisions of I.C. 36-9-15.5.

(1994 Code, § 34.053) (Ord. 1343, passed 7-9-1984; Am. Ord. 1410, passed 6-22-1987; Am. Ord. 90-1497, passed 7-11-1990; Am. Ord. 93-1584, passed 7-12-1993)

CUMULATIVE CAPITAL IMPROVEMENT FUND

34.095 DEFINITION.

For the purpose of this subchapter, the following definition shall apply unless the context clearly indicates or requires a different meaning.

CAPITAL IMPROVEMENT. The construction or improvement of any property owned by the city, including but not limited to streets, thoroughfares and sewers and the retirement of general obligation bonds of the city issued and the proceeds used for the purpose of constructing capital improvements. The term CAPITAL IMPROVEMENT shall not include salaries of any public officials or employees, except those which are directly chargeable to a capital improvement.

(1994 Code, § 34.060) (Ord. 1029, passed - -)

34.096 CREATION, DISPOSITION OF REVENUE.

There is hereby created a special fund to be known as the Cumulative Capital Improvement Fund into which the cigarette taxes allotted to the city by reason of I.C. 6-7-1-30.1 shall be deposited. Such Fund shall be a cumulative fund and all the money deposited into the Fund shall be appropriated and used solely for capital improvements. None of such money shall revert to the General Fund or be used for any purpose other than capital improvements.

(1994 Code, § 34.061) (Ord. 1029, passed - -)

Statutory reference:

Authority, see I.C. 36-9-16-2

SIDEWALK IMPROVEMENT PROGRAM

34.110 ESTABLISHMENT.

There is hereby established the Plymouth Sidewalk Improvement Program. The city’s Street Superintendent, in consultation with the City Engineer, shall review the need for sidewalk repair and improvement, giving due regard to the priorities identified in the city’s Americans with Disabilities Act Transition Plan: Pedestrian Facilities in the Public Right-of-Way, and a list of project shall be prioritized by the city’s Street Superintendent.

(Ord. 2005-1880, passed 3-14-2005; Am. Ord. 2012-2032, passed 4-9-2012)

34.111 DISPOSITION.

(A) For the fiscal year 2012, the total sum that shall be made available from the city’s Street Department budget for the Sidewalk Improvement Program is $30,000. For subsequent fiscal years, the amount to be appropriated for the Program shall be approved as part of the annual budget process.

(B) The Street Superintendent’s list of projects, with estimated costs (including labor and rental costs), shall be submitted to the Board of Public Works and Safety for review and approval. The Street Superintendent shall make due effort to complete each project in the order appearing on the list, and shall make due effort to complete each list of projects during each fiscal year.

(C) The sidewalks shall be repaired and constructed according to the specifications and requirements of the city’s ordinances and regulations and subject to review and approval of the City Engineer/Director of Public Works.

(D) Repairs of curbs shall be at the discretion of the Street Superintendent. The cost of the repairs and/or replacement of curbs shall be incurred by the city.

(Ord. 2005-1880, passed 3-14-2005; Am. Ord. 2012-2032, passed 4-9-2012)

MUNICIPAL AIRPORT CUMULATIVE BUILDING FUND

34.125 ESTABLISHMENT.

There is hereby established a Municipal Airport Cumulative Building Fund pursuant to the provisions of I.C. 36-9-16. The adoption of Ordinance No. 92-1564 is reaffirmed in its entirety.

(1994 Code, § 34.080) (Ord. 92-1564, passed 8-10-1992; Am. Ord. 92-1570, passed 9-28-1992)

34.126 TAX LEVY.

(A) An ad valorem property tax levy will be imposed and the revenues from the levy will be retained in the Municipal Airport Cumulative Building Fund.

(B) The maximum rate of property tax levy will not exceed such amounts as shall be set from time to time by the Common Council.

(1994 Code, § 34.081) (Ord. 92-1564, passed 8-10-1992; Am. Ord. 92-1570, passed 9-28-1992)

34.127 USE OF FUNDS.

The funds accumulated in the Municipal Airport Cumulative Building Fund will be used for all provisions listed in the original Ordinance 92-1564 and any other uses permitted under Indiana law.

(1994 Code, § 34.082) (Ord. 92-1564, passed 8-10-1992; Am. Ord. 92-1570, passed 9-28-1992)

34.128 EFFECTIVE DATE.

This Fund takes effect upon the approval of the State Board of Tax Commissioners pursuant to the provisions of I.C. 8-21-9-21.

(1994 Code, § 34.083) (Ord. 92-1564, passed 8-10-1992; Am. Ord. 92-1570, passed 9-28-1992)

NON-REVERTING OPERATING FUND

34.140 USE OF FUNDS.

(A) There is hereby created a special non-reverting operating fund pursuant to I.C. 36-10-3-20 and 36-10-3-22 and any other applicable state statute.

(B) The following sources of revenue shall be deposited into the special non-reverting operating fund:

(1) All recreational programming revenues generated by the Park Department, with the exclusion of all swimming pool revenues;

(2) All picnic shelter/picnic site revenues generated by the Park Department;

(3) All rental, lease and use of facilities revenues pursuant to agreements/contracts entered into by all individuals and organizations with the Park Department;

(4) All concession and equipment revenues generated by the Park Department;

(5) All donations received by the Park Department, including any donations designated for the Performing Arts Center.

(C) Among the purposes that monies placed in said non-reverting operating fund shall be used are to pay salaries and related expenses incurred for the recreational programs developed by the Park Department (excluding swimming pool) and related expenses incurred by virtue of the picnic shelter/picnic site rentals, and expenses incurred and related to concession and equipment activities, and all activities related to the rental, lease and use of facilities through agreements/contracts entered into by all individuals and organizations with the Park Department, and expenses related to the Performing Arts Center. Monies placed in this non-reverting operating fund shall not be withdrawn except for the purpose for which this fund was created. To the extent permitted by Indiana law, this fund shall be under the control and management of the Board of Parks & Recreation.

(1994 Code, § 34.090) (Ord. 94-1606, passed 4-25-1994; Am. Ord. 95-1641, passed 8-28-1995)

NON-REVERTING CAPITAL IMPROVEMENT FUND

34.155 USE OF FUNDS.

There is hereby created a special non-reverting capital improvement fund for the purpose of making capital improvements or acquiring land for the Plymouth Park and Recreation Department, pursuant to I.C. 36-10-3-20 and 36-10-3-22.

(A) All monies left over from the special non-reverting operating fund which are no longer needed for that fiscal year and which are determined as excess funds by the Board of Parks and Recreation shall be deposited in either the non-reverting capital improvement fund or the park general fund. Also, all funds derived from the baseball leagues and all funds presently in the park gift fund, and any funds designated for the park gift fund shall be deposited in either the non-reverting operating fund or the non-reverting capital improvement fund.

(B) Monies placed in this non-reverting capital improvement fund shall not be withdrawn except for the purpose for which the fund was created. To the extent permitted by Indiana law, said fund shall be under the control and management of the Board of Parks and Recreation.

(1994 Code, § 34.100) (Ord. 94-1606, passed 4-25-1994; Am. Ord. 95-1641, passed 8-28-1995)

AVIATION ROTARY FUND

34.170 ESTABLISHMENT.

There is hereby created and established a fund known as the Aviation Rotary Fund of the City of Plymouth.

(1994 Code, § 34.110) (Ord. 98-1724, passed 7-27-1998)

34.171 USE OF FUNDS.

(A) The money deposited in said Fund shall be used to purchase fuels and lubricants for sale to the general public in the operation of the Plymouth Municipal Airport.

(B) All monies received from the sale of fuels and lubricants to the general public shall be delivered at least once a month to the Clerk-Treasurer of the city.

(C) Said monies shall then be deposited in the Aviation Rotary Fund and shall remain in the Aviation Rotary Fund to be checked against by the Board of Aviation Commissioners as other appropriations are disbursed for the sole purpose of purchasing fuels and lubricants for sale to the public in the operation of the airport.

(D) At the end of each fiscal year, the Board of Aviation Commissioners shall make a detailed statement to the Common Council showing the amount of money received and paid over to the Clerk-Treasurer to the credit of the Aviation Rotary Fund and also showing the amount of fuels and lubricants on hand.

(E) If, at the end of a fiscal year the accumulated Aviation Rotary Fund plus value of inventory of fuels on hand exceeds the total appropriation to the fund by 25%, the excess shall be turned over to the Plymouth Aviation Fund.

(F) The Board of Aviation Commissioners may create a reserve or depreciation account for the purpose of capital improvements or replacements out of operating profits from the operation of the airport.

(G) The Aviation Rotary Fund shall be established with an initial transfer from the Aviation Fund in the amount of $40,000.

(1994 Code, § 34.111) (Ord. 98-1724, passed 7-27-1998; Am. Ord. 2014-2080, passed 9-8-2014)

GRANT FUNDS

34.187 DEPARTMENT OF COMMERCE INFRASTRUCTURE GRANT FUND.

(A) There is hereby established a Department of Commerce Infrastructure Grant Fund.

(B) The revenue that goes into the Department of Commerce Infrastructure Grant Fund shall be moneys received for the Indiana Department of Commerce for Infrastructure Improvements, as well as any other grant funds received for similar purposes, as well as the required matching funds if necessary.

(C) The purposes for which expenditures can be made from the Department of Commerce Infrastructure Grant Fund shall be infrastructure improvements (roads, drainage, sewer and water line extensions) related to and described in the grant application for which the grant was awarded.

(D) The life of the Department of Commerce Infrastructure Grant Fund shall be perpetual, or until such time as a subsequent ordinance is passed and adopted by the Common Council that establishes a shorter duration for the Fund or terminates the Fund. The Fund balance is of a non-reverting nature, or until such time as a subsequent ordinance is passed and adopted by the Common Council which converts the Fund to reverting status. If such a subsequent ordinance is adopted, the ordinance shall provide for the disposition of the Fund balance upon termination of the Fund.

(1994 Code, § 34.122)

34.188 CDBG/SOLOMON GROUP PROJECT FUND.

(A) There is hereby established the CDBG/Solomon Group Project Fund.

(B) There shall be transferred and/or deposited to said Fund all monies received from the community development block grant, the matching funds received from the Solomon Development Group, LLC, and other monies related to this infrastructure program.

(C) Expenditures from the Fund shall be used solely for construction and design of the infrastructure to be in support of the affordable housing development being constructed by the Solomon Development Group, LLC.

(D) The CDBG/Solomon Group Project Fund shall dissolve and terminate upon payment of all funds to be paid as needed in the construction of the infrastructure.

(Ord. 2007-1921, passed 2-26-2007)

34.189 FEMA FLOOD MITIGATION GRANT FUND.

(A) There is hereby created a FEMA Flood Mitigation Grant Fund (the “Fund”).

(B) Fifty thousand dollars shall be initially transferred to the Fund from accumulated interest on monies in the UDAG Fund. FEMA disbursements, if any, shall also be deposited in the Fund.

(C) Expenditures from the fund shall be for costs related to the acquisition and demolition of improvements on real estate purchased by the City in the flood plain.

(D) The Fund shall be perpetual until terminated by subsequent ordinance, or by operation of Indiana law. The Fund balance shall be non-reverting at year end.

(E) Upon termination of the Fund, any balance remaining shall be transferred to the Rainy Day Fund of the city.

(Ord. 2008-1952, passed 3-24-2008)

34.190 EDA GRANT / TECHFARM FUND.

(A) There is hereby created the EDA Grant/ techFarm Fund (the “Fund”).

(B) Five hundred seventy thousand dollars shall be initially transferred to the Fund from monies in the UDAG Fund. United States Economic Development Administration disbursements from the previously awarded EDA Grant shall also be deposited in the Fund.

(C) Expenditures from the fund shall be for costs related to the design, development, and construction of the techFarm located in the US 30/Pine Road TIF District. Other authorized expenditures include costs related to the administration of the EDA Grant.

(D) The Fund shall be perpetual until terminated by subsequent ordinance, or by operation of Indiana law. The Fund balance shall be non-reverting at year end.

(E) Upon termination of the Fund, any balance remaining shall be transferred to the Rainy Day Fund of the city.

(Ord. 2008-1971, passed 8-11-2008)

FUND FOR DEFERRAL AND DIVERSION MONIES

34.200 ESTABLISHMENT; REVENUE; USE OF FUNDS; LIFE OF FUND.

(A) There is hereby established a Fund for Deferral and Diversion Monies.

(B) The revenue that shall be deposited into the Fund for Deferral and Diversion Monies shall be money received from the Auditor of Marshall County, representing funds disbursed from the Marshall County Deferred Prosecution Program and the Marshall County Pretrial Diversion Program as administered by the office of the Prosecuting Attorney of Marshall County.

(C) The purposes for which expenditures can be made from the Fund for Deferral and Diversion Monies shall be related to the purchase of law enforcement equipment, training or both. EQUIPMENT, for purposes of this section, is defined as tools, gear, provisions, or furnishings, including but not limited to such clothing, accessories and paraphernalia as the Chief of Police shall determine to be desirable for the operation and morale of his department. Nothing herein, however, shall be taken to give individual officers any standing to demand that their uniforms be purchased or replaced out of the Fund for Deferral and Diversion Monies.

(D) The life of the Fund for Deferral and Diversion Monies shall be perpetual, or until such time as a subsequent ordinance is passed and adopted by the Common Council that establishes a shorter duration for the Fund or terminates the Fund. The Fund balance is of a non-reverting nature, or until such time as a subsequent ordinance is passed and adopted by the Common Council which converts the Fund to reverting status. If such a subsequent ordinance is adopted, the ordinance shall provide for the disposition of the Fund balance upon termination of the Fund.

(1994 Code, § 34.130) (Ord. 99-1742, passed 6-14-1999; Am. Ord. 2000-1770, passed 4-24-2000)

POLICE DEPARTMENT FUNDS

34.215 CASH CHANGE FUND.

(A) There is hereby established a Cash Change Fund for the Plymouth Police Department. The Cash Change Fund shall be established by a warrant in the sum of $50 drawn on the appropriate fund of the city, in favor of the Chief of Police, without need for appropriation to be made for it.

(B) The Chief of Police shall covert the warrant to cash, shall use it to make change when collecting cash revenues, and shall account for it in the same manner as is required for other funds of the city.

(C) The entire Cash Change Fund shall be returned to the original fund whenever there is a change in the custodian of the Fund.

(1994 Code, § 34.140) (Ord. 99-1749, passed 9-13-1999)

34.216 PETTY CASH FUND.

(A) There is hereby established a Petty Cash Fund for the Plymouth Police Department. The custodian of the Petty Cash Fund is the Chief of Police, and he/she shall use the funds to pay small or emergency items of operating expense. The Petty Cash Fund shall be established by a warrant in the sum of $50 drawn on the appropriate fund of the city, in favor of the Chief of Police, without need for appropriation to be made for it.

(B) A receipt shall be taken for each expenditure made from the Petty Cash Fund. The Chief of Police shall periodically file a voucher, with all original receipts totaling the cash claim expended being attached to it, so that the fund can be reimbursed for expenditures so made. Reimbursement shall be approved by the Board of Public Works and Safety.

(C) The entire Petty Cash Fund shall be returned to the original fund whenever there is a change in the custodian of the Fund.

(1994 Code, § 34.141) (Ord. 99-1749, passed 9-13-1999)

34.217 BUY MONEY AND CONFIDENTIAL FUND.

(A) There is hereby established a Buy Money and Confidential Fund for the Plymouth Police Department.

(B) The purpose of the Buy Money and Confidential Fund is to allocate monies for the purchase of services, evidence and specific information. The Chief of Police is designated as the custodian of the Fund.

(C) All appropriations for this Fund shall be as provided in the manner customarily authorized by state appropriation statutes.

(D) A receipt shall be made for each expenditure made from the Buy Money and Confidential Fund. The balance of the Fund shall be returned to the original fund whenever there is a change in the custodian of the Fund.

(E) Appendix J of the Indiana Criminal Justice Planning Agency Guide, entitled Guidelines for Confidential Expenditures is hereby adopted as the appropriate guidelines to be used by the Chief of Police to authorize disbursements and expenditures from the Buy Money and Confidential Fund.

(1994 Code, § 34.142) (Ord. 99-1749, passed 9-13-1999)

34.218 FEDERAL EQUITABLE SHARING FUND.

(A) There is hereby established the “Police Department Federal Equitable Sharing Fund” (“Fund”).

(B) All federal equitable sharing funds received from the Department of Justice and the Department of the Treasury shall be placed in the Fund.

(C) The Fund and any interest generated therefrom shall be used for law enforcement expenses only, which include, but are not limited to, salaries, investigations, travel and training, computers, weapons, protective gear, surveillance equipment, building and improvements, drug education and awareness programs, and/or transfer of funds to other state and local law enforcement agencies as permitted by the agreement.

(D) The Fund shall be a perpetual fund that shall remain in effect for so long as the city and the Plymouth Police Department are part of a Federal Equitable Sharing Agreement.

(E) If the Fund is terminated, any remaining balance in the Fund shall be dispersed according to the directive of the Federal Government.

(Ord. 2005-1898, passed 11-28-2005)

FINANCIAL GUARANTEE FUND

34.245 CREATION; USE.

(A) There is hereby created a Financial Guarantee Fund. Into this fund shall be deposited all financial guarantees that are posted by landowners for construction projects to insure completion of certain aspects of the project, including but not limited to water lines, sewer lines, streets, curbs, sidewalks, lighting and drainage.

(B) The funds deposited in the Financial Guarantee Fund by any particular landowner shall not accrue interest. The amount of money deposited in the Fund by any particular landowner for any particular project shall be returned to the landowner, without interest, only upon the approval of the Board of Public Works and Safety, the board which has jurisdiction over such projects and which established the financial guarantee in the first place.

(C) The funds so deposited, if not returned to the landowner, shall be used to complete that portion of the project for which the funds were deposited as a guarantee. The use of the funds shall likewise be only as directed by the Board of Public Works and Safety.

(1994 Code, § 34.160) (Ord. 99-1753, passed 10-25-1999; Am. Ord. 2014-2082, passed 10-13-2014)

CASH CHANGE FUND FOR PARK DEPARTMENT

34.260 CREATION; PURPOSE.

(A) There is hereby established a Cash Change Fund for the Plymouth Park Department.

(B) The Cash Change Fund shall be established by a warrant in the sum of $50 drawn on the appropriate fund of the city, in favor of the Park Superintendent, without the need for appropriation to be made for it.

(C) The Park Superintendent shall convert the warrant to cash, shall use it to make change when collecting cash revenues, and shall account for it in the same manner as is required for other funds of the city.

(D) The entire Cash Change Fund shall be returned to the original fund whenever there is a change in the custodian of the fund.

(1994 Code, § 34.170) (Ord. 2000-1773, passed 6-12-2000; Am. Ord. 2004-1871, passed 9-13-2004)

GREENWAYS TRAIL PROJECT FUND

34.290 CREATION; PURPOSE.

(A) There is hereby created a Greenways Trail Project Fund.

(B) There shall initially be transferred to the Fund $100,000 from the accumulated interest on Urban Development Action Grant No. B85-AB-18 monies. Further, additional sums of interest on said monies may be transferred to the Fund upon further resolution of the Common Council, if necessary.

(C) In addition to the monies referred to in subsection (B) above, donations from private individuals or entities intended for use in the development of the Greenways Trail Project and/or grant monies intended for said purpose received by the city or the Park Board shall go into the Fund.

(D) Expenditures from the Fund shall be for costs of development and construction of the Greenways Trail Project and the maintenance of the Greenways Trail once the project has been completed.

(E) The Fund shall be perpetual until terminated by subsequent ordinance and the Fund balance shall be non-reverting at year end.

(F) Upon termination of the Fund, any balance remaining therein shall revert to the General Fund of the city.

(1994 Code, § 34.190) (Ord. 2001-1804, passed 12-26-2001)

MONETARY GIFT FUND

34.335 CREATION; PURPOSE.

(A) There is hereby created a Monetary Gift Fund.

(B) Donations accepted by the Common Council, in writing, which donations are not for purposes for which there are existing, previously-established special funds, shall go into the Fund.

(D) Restricted donations so received and accepted into the Fund shall be segregated into separate accounts within the Fund according to their purpose and expenditures from said accounts shall be for said respective purposes.

(E) If, after a period of 10 years, the city has been reasonably unable to use a restricted donation for the purpose for which it was given and received, the city may, with the written consent of the donor of the donation, use the donation for another similar purpose. If the donor refuses to consent, the city may, at its option, refund the donation without interest. If after diligently attempting to communicate with the donor, the city has been unable to learn of the donor’s whereabouts, the city may, after published notice and public hearing, use the donation for another city purpose which shall be as near to the intended purpose as is reasonably possible.

(F) The Fund shall be perpetual until terminated by subsequent ordinance, and the Fund balance shall be non-reverting at the year end.

(G) Any balance remaining in the Fund at the time of termination shall be disbursed as required by the law of the state.

(1994 Code, § 34.220) (Ord. 2002-1834, passed 5-27-2002)

RIVER BOAT WAGERING TAX REVENUE FUND

34.350 CREATION; PURPOSE.

(A) There is hereby created a River Boat Wagering Tax Revenue Sharing Distribution Fund.

(B) Distributions made to the city from the Indiana River Boat Wagering Tax Revenue Sharing Distribution shall go into the Fund.

(C) Expenditures from the Fund shall be for purposes allowed under I.C. 4-33-13-5(f), as stated above or, as said law may be amended in the future.

(D) The Fund shall be perpetual until terminated by subsequent ordinance, and the Fund balance shall be non-reverting at the year end.

(E) Any balance remaining in the Fund at the time of termination shall be disbursed as required by the law of the state.

(1994 Code, § 34.230) (Ord. 2003-1842, passed 10-13-2003)

RAINY DAY FUND

34.360 CREATION.

There is hereby established a Rainy Day Fund to receive transfers of unused and unencumbered funds and to receive transfers of funds designated for deposit into a Rainy Day Fund from either the federal or state government.

(Ord. 2004-1852, passed 2-24-2004)

34.361 PURPOSE.

The funds on deposit in the Rainy Day Fund may be used solely for the operation of the city and its various departments, including, but not limited to, salaries and wages, costs of services, supplies, equipment, capital improvements, repairs and similar expenditures.

(Ord. 2004-1852, passed 2-24-2004)

34.362 TRANSFERS.

At any time during the city’s fiscal year, the city Clerk-Treasurer may transfer unused and unencumbered funds to the Rainy Day Fund. In any fiscal year, such transfer may not exceed 10% of the city’s total budget for that fiscal year.

(Ord. 2004-1852, passed 2-24-2004; Am. Ord. 2007-1932, passed 7-23-2007)

34.363 APPROPRIATIONS.

The Common Council may authorize the expenditure of funds from the Rainy Day Fund by appropriations made in the same manner as other funds that receive tax monies upon making a finding that the proposed use of the funds is consistent with the intent of the fund.

(Ord. 2004-1852, passed 2-24-2004)

34.364 NON-REVERTING FUND.

Monies deposited in the Rainy Day Fund shall not revert to other funds unless the Rainy Day Fund is terminated by ordinance of the Common Council. In the event that the Rainy Day Fund is terminated, any monies in the Rainy Day Fund are to be transferred by the city Clerk-Treasurer to the General Fund.

(Ord. 2004-1852, passed 2-24-2004)

AIRPORT DEPARTMENT CASH CHANGE FUND

34.370 CREATION.

(A) There is hereby established a Cash Change Fund in the amount of $100 for the Plymouth Airport Department.

(B) The Cash Change Fund shall be increased by a warrant in the sum of $75 drawn on the appropriate fund of the city, in favor of the Airport Manager, without need for appropriation to be made for it.

(C) The Airport Manager shall convert the warrant to cash, shall use it to make change when collecting cash revenues, and shall account for it in the same manner as is required for other funds of the city.

(D) The entire Cash Change Fund shall be returned to the original fund whenever there is a change in the custodian of the fund or when the fund is no longer needed.

(Ord. 2004-1861, passed 6-14-2004)

APPENDIX: CAPITAL ASSET POLICY

Section

1. General information

2. Definition of capital assets

3. Valuation of capital assets

4. Asset definitions by major category

5. Depreciation methods

6. Capital asset acquisition

7. Asset transfers and dispositions

8. Periodic inventories

9. Responsibilities of Clerk-Treasurer

10. Responsibilities of department heads

1. GENERAL INFORMATION.

(A) The Fixed Asset Policy is effective January 1, 2003. The policy will be referred to as the Capital Asset Policy. This Policy is being issued to document the minimum value of capital assets to be reported on our financial reports and to include infrastructure assets. This issuance of a policy document is related to the implementation of a new reporting model, Governmental Accounting Standards Board Statement 34. The capital asset threshold will be $5,000. An asset with a value under $5,000 will be expensed in the year of purchase. The infrastructure portion of this policy is also effective January 1, 2003.

(B) City Utilities will follow this same definition of capital assets, any item with a unit cost of $5000 or more shall be capitalized. Assets that are not capitalized (< $5,000) are expensed in the year of acquisition.

(C) The city has established a Capital Asset Policy in order to provide a higher degree of control over its considerable investment in capital assets, and to be able to demonstrate accountability to its various constituencies: citizens, rate-payers, oversight bodies and regulators. The purpose of establishing a Capital Asset Policy is fivefold:

(1) to safeguard the investments of the citizens of Plymouth;

(2) to fix responsibility for the custody of equipment;

(3) to provide a basis for formulating capital asset acquisition, maintenance and retirement policies;

(4) to provide data for financial reporting;

(5) to demonstrate appropriate stewardship responsibility for public assets.

(D) This policy will only serve to classify capital assets, including fixed and infrastructure, for accuracy in financial reporting through the Indiana State Board of Accounts. It does not include data processing, programming requirements, or computer operations procedures.

(Ord. 2003-1850, passed 12-29-03)

2. DEFINITION OF CAPITAL ASSETS.

(A) (1) Capital assets include: land, land improvements, including monuments, buildings, building improvements, construction in progress, machinery and equipment, vehicles and infrastructure. All land will be capitalized but not depreciated. All items with a useful life of more than 1 year, and having a unit cost of $5,000 or more shall be capitalized (including acquisitions by lease-purchase agreements and donated items).

(2) Assets that are not capitalized (items < $5000) are expensed in the year of acquisition. An inventory will be kept on all computers and other equipment with a capitalized cost of > $5,000. (See Section 8). Exceptions are:

• items costing less than the above limits which are permanently installed as part of the cost of original construction or installation of a larger building or equipment unit will be included in the cost of the larger unit;

• modular equipment added subsequent to original equipment construction of a larger building or equipment unit which may be put together to form larger units costing more than the prescribed limits will be charged to capital assets even though the cost of individual items is less than such units;

• cabinets, shelving, bookcases, and similar items, added subsequent to original construction, which are custom made for a specific place and adaptable elsewhere;

NOTE: Purchases made using grant funds must comply with grant requirements or the above procedures, whichever are the most restrictive.

(B) Threshold levels for capital assets. The following schedule will be followed for the different types of capital assets other than infrastructure assets:

	Capitalize/Depreciate
Land	All/Capitalize only
Land Improvements	$5,000
Building	$5,000
Building Improvements	$5,000
Construction in Progress	All/Capitalize only
Machinery and Equipment	$5,000
Vehicle	$5,000
City Utility Assets	$5,000

(1) At the network level, the asset will be classified as major if the cost of the network item is at least 10% of the cost of all capital assets in fiscal year 1999. A network will be defined as a group of similar assets that serve a particular function or purpose for the city.

(2) At the subsystem level, the asset will be classified as major if the cost of the subsystem item is at least 5% of the cost of all capital assets in fiscal year 1999. A subsystem will be defined as a segment of a network of assets that serve a similar function for the city.

(Ord. 2003-1850, passed 12-29-03)

3. VALUATION OF CAPITAL ASSETS.

(A) Capital assets must be recorded at actual cost. Normally the cost recorded is the purchase price or construction costs of the asset, but also included are any other reasonable and necessary costs incurred to place the asset in its intended location and intended use. Such costs could include the following:

• legal and title fees, closing costs,

• appraisal and negotiation fees, surveying fees,

• damage payments,

• land preparation costs, demolition costs,

• architect, engineering and accounting fees,

• insurance premiums during construction,

• transportation charges,

• interest costs during construction.

(B) Donated or contributed assets should be recorded at their fair market value on the date donated.

(Ord. 2003-1850, passed 12-29-03)

4. ASSET DEFINITIONS BY MAJOR CATEGORY.

It is important to the maintenance of accurate records that each asset category be precisely defined and that all persons responsible for records maintenance be fully aware of the categorization system. This section further clarifies the asset definitions by major category.

(A) Land. Land is defined as specified land, lots, parcels or acreage including rights of way, owned by the city, its various departments, boards or authorities, regardless of the method or date of acquisition. Easements will not be included as the city does not own them, but as an interest in land owned by another (i.e., property owner) that entitles its holder to a specified limited use.

(B) Improvements other than buildings. Examples of civil city assets in this category are walks, parking areas and drives, fencing, retaining walls, pools, fountains, planters, underground sprinkler systems, and other similar items. Examples of city utilities assets in this category are water supply mains, collection sewers, wells, dams, fences, intake pipes, manholes, and fire hydrants.

(1) All structures designed and erected to house equipment services or functions are included. This includes systems, services, and fixtures within the buildings, and attachments such as porches, stairs, fire escapes, canopies, areaways, lighting fixtures, flagpoles, and all other such units that serve the building.

(2) Plumbing systems, lighting systems, heating, cooling, ventilating and air handling systems, alarm systems, sound systems, surveillance systems, passenger and freight elevators, escalators, built-in casework, walk-in coolers and freezers, fixed shelving, and other fixed equipment are included with the building, if owned. Communication antennas and/or towers are not included as buildings. These are parts of the equipment units that they serve.

(D) Equipment. Equipment includes all other types of physical property within the scope of the Capital Asset Management System not previously classified. Included within this category are office mechanical equipment, office furniture, appliances, furnishings, machinery items, maintenance equipment, communication equipment, police, fire, sanitation and park department, laboratory equipment, vehicles, road equipment, aircraft, emergency equipment, earth moving equipment, text equipment, civil defense equipment, and data processing equipment. All supplies are excluded.

(E) Infrastructure.

(1) Infrastructure assets are long-lived capital assets that normally can be preserved for a significantly greater number of years than most capital and that are normally stationary in nature. Examples include roads, streetlights, traffic signals, drainage systems, and water systems. Infrastructure assets do not include buildings, drives, parking lots or any other examples given above that are incidental to property or access to the property above.

(2) Additions and improvements to infrastructure, which increase the capacity or efficiency of the asset, will be capitalized. Maintenance/repairs will be considered as necessary to maintain the existing asset, and therefore not capitalized. For example, patching, resurfacing, snow removal, etc., are considered maintenance activities such as feasibility studies, and preliminary engineering and design, will be expensed and not capitalized as an element of the infrastructure asset.

(3) The retroactive reporting requirements for infrastructure of GASB 34 requires the city to report items put into service from 1980 forward, and gives the city the option to report items put into service prior to 1980. The city will report only on items put into service after 1980. Retroactive reporting is not mandated until fiscal years beginning January 1, 2007 which the city will comply with.

(Ord. 2003-1850, passed 12-29-2003)

5. DEPRECIATION METHODS.

(A) Civil city assets accounted for under the Capital Asset Policy will not be depreciated. City funds are reported on a cash basis. City utilities assets will be depreciated using the straight-line method. Depreciation will be conducted at year end.

(B) Salvage value will be determined on an asset-by-asset basis. Land is not depreciated according to general accepted accounting principles.

(C) A network of assets is composed of all assets that provide a particular type of service for government. A subsystem of a network of assets is composed of all assets that make a similar portion or segment of a network of assets. The following will be the breakdown of our networks and subsystems:

Roads/Streets Network

Subsystems: Types of Streets Curbs

Traffic Components Network

Subsystems: Traffic Signals Street Lights

(D) Straight-line depreciation. City utilities’ assets accounted for under the Capital Asset Policy will be depreciated using the straight-line method of depreciation. A gain or loss on disposal will be recorded. Following is a list of the most common useful lives:

Water

Account Description	Depreciation Basis

Sewage plant	50 years
Wells & springs	25 years
Supply mains	100 years
Structures & improvements - pumping	50 years
Electric pumping equipment	20 years
Diesel pumping equipment	20 years
Structures & improvements - water treatment	50 years
Water treatment equipment	25 years
Distribution reservoirs & standpipes	25 years
Transmission & distribution - mains	100 years
Transmission & distribution - services	30 years
Meters	15 years
Hydrants	50 years
Other transmission & distribution plant	75 years
Office equipment	20 years
Transportation equipment	20 years
Tools, shop & garage	20 years
Power operated equipment	12 years
Communication equipment	12 years
Miscellaneous equipment	12 years

Wastewater

Account Description	Depreciation Basis

Wastewater plant	50 years
Wastewater mains	50 years
Office equipment	10 years
General office building	25 years
Transportation equipment	5 years
Laboratory equipment	10 years
Power operated equipment	10 years
Wastewater miscellaneous equipment	10 years
Wastewater master plan	20 years

(Ord. 2003-1850, passed 12-29-03)

6. CAPITAL ASSET ACQUISITION.

(A) The method of acquisition is not a determining factor. Each department should report items acquired by:

• regular purchases,

• lease purchase - see below

• construction by city personnel,

• construction by an outside contractor,

• resolution/condemnation,

• donation/contribution,

• addition to an existing asset,

• transfer from another department,

• trade or barter,

• annexation

(B) (1) Leased equipment should be capitalized if the lease agreement meets any 1 of the following criteria:

(a) The lease transfers ownership of the property to the lessee by the end of the lease term;

(b) The lease contains a bargain purchase option;

(d) The present value of the minimum lease payments at the inception of the lease, excluding executory costs, equals at least 90% of the fair value of the leased property.

(2) Leases that do not meet any of the above criteria should be recorded as an operating lease and reported in the notes of the financial statements.

(Ord. 2003-1850, passed 12-29-2003)

7. ASSET TRANSFERS AND DISPOSITIONS.

(A) Property should not be transferred, turned-in for auction, or disposed of without prior approval of the board. A Vehicle/Equipment Outprocessing checklist should be sent to the Clerk-Treasurer’s Office in all cases. This form is a dual-purpose form for transfer (defined as any movement of an asset by virtue of change in location, either by account, department, building, floor, or room) or retirement (disposal) of property. The main points to be remembered when using this form are:

• always provide sufficient detail to properly identify the asset

• be accurate and do not overlook any of the needed entries

• write legibly

• complete each column for every asset listed on the form

• enter information in correct row, depending on whether you are transferring or deleting an asset

• have the department head sign at the bottom of the form

• return the form to the Clerk-Treasurer’s Office.

(B) If an asset is stolen, the department head should notify the Clerk-Treasurer’s Office.

(Ord. 2003-1850, passed 12-29-03)

8. PERIODIC INVENTORIES.

A physical inventory of all capital assets (any item over $5,000) will be conducted in each department on or about December 31 of every year. The Clerk-Treasurer’s Office will conduct spot checks on a random basis. Department heads will be accountable for the capital asset inventory charged to their departments by verifying a list of their capital assets at year-end.

(Ord. 2003-1850, passed 12-29-2003)

9. RESPONSIBILITIES OF CLERK-TREASURER.

The Fiscal Office will ensure that accounting for capital assets is being exercised by establishing a capital asset inventory, both initially and periodically in subsequent years. The Fiscal Officer will further ensure that the capital asset report will be updated annually to reflect additions, retirements, and transfers and to reflect the new, annual capital asset balance for financial reporting purposes and the annual and accumulated depreciation calculation.

(Ord. 2003-1850, passed 12-29-2003)

10. RESPONSIBILITIES OF DEPARTMENT HEADS.

(A) It is the responsibility of the department heads to act as or designate a steward for each piece of property. The steward will become the focal point for questions regarding the availability, condition, and usage of the asset, as well as the contact during the physical inventory process.

(B) Someone should be designated to record the receipt of the asset, to examine the asset to make sure that no damage was incurred during shipment and to make sure that the asset was received in working order.

(C) The steward is also responsible for arranging for the necessary preventative maintenance and any needed repairs to keep the asset in working condition. It is necessary to have a responsible person available for questions that arise during a physical inventory or when someone wants to borrow the asset. The steward ensures that the asset is used for the purpose for which it was acquired and that there is no personal or unauthorized use. In addition, the steward should report any property damage or theft.

(Ord. 2003-1850, passed 12-29-2003)

CAPITAL ASSET NOTIFICATION FORM
DEPARTMENT:
THIS NOTIFICATION IS FOR:	ADDITION	UPDATE	TRANSFER	DISPOSAL
ACQUISITION IS BY:	PURCHASE	DONATION	LEASE	TRANSFER
(ATTACH COPY)
DATE OF TRANSACTION:				P.O. No.
ACCOUNT No.		ACCOUNT NAME:
ESTIMATED:	LIFE EXPECTANCY		MILEAGE OR HOURS
CIP NUMBER:		LOCATION:
SERIAL OR VIN NUMBER:
TOTAL/PARTIAL VALUE OF ASSET:
(PLEASE ATTACH OR FORWARD COPY OF INVOICE(S) TO DOCUMENT COST. IF ASSET WAS DONATED, ATTACH DOCUMENTATION OF FAIR MARKET VALUE OF ASSET, HOW DETERMINED, AND DATE BOARD APPROVED.)
DESCRIPTION OF ASSET:
(BUILDING DESCRIPTION MUST INCLUDE SQUARE FOOTAGE BUILDING MATERIAL, ROOF TYPE, AND IF EQUIPPED WITH SPRINKLER SYSTEM OR BOILER.)
BRAND OR MAKE.			MODEL No.
YEAR:			LICENSE No.
GROSS VEHICLE WEIGHT:			TYPE OF FUEL
(TRUCKS ONLY)
DISPOSAL OF CAPITAL ASSET:
METHOD OF DISPOSITION:	SALE	TRADE-IN	SCRAPPED	END-OF LEASE
	STOLEN/WRECKED		TRANSFERRED TO:
	(ATTACH POLICE REPORT)
AMOUNT OF CASH RECEIVED OR TRADE-IN VALUE (IF APPLICABLE)				$
DATE BOARD APPROVED:		DATE COUNCIL APPROVED:
(ATTACH COPY OF MINUTES)		(ATTACH COPY OF MINUTES)
RESPONSIBLE DEPARTMENT HEAD’S SIGNATURE.
PRINTED NAME
IF TRANSFERRED
RECEIVING PERSON’S SIGNATURE.
PRINTED NAME:
CLERK-TREASURER’S USE ONLY
RECEIVED:			ENTERED CAPITAL ASSET:
INSURED:			CLERK-TREASURER’S INITIALS:

(Ord. 2003-1850, passed 12-29-2003)