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The city will prepare an on-going plan for the reconstruction of all city streets. The city will provide <br /> a sustainable source of funding for the street reconstruction program. The city will annually <br /> prepare cash flow projections for street reconstruction projects to ensure adequate and ongoing <br /> funding. <br /> Capital Assets and Capitalization Thresholds <br /> A capital asset is a tangible asset that has a life expectancy of more than one year. For financial <br /> statement reporting purposes, the city reports capital assets in the following categories and has <br /> established a capitalization threshold for each category: <br /> Capitalization <br /> Category Threshold <br /> Land $10,000 <br /> Buildings $25,000 <br /> Other Improvements $25,000 <br /> Machinery and equipment $10,000 <br /> Vehicles $10,000 <br /> Infrastructure $100,000 <br /> Construction in progress Accumulate all costs and capitalize <br /> if over$100,000 when completed <br /> Other assets $10,000 <br /> Another criterion for recording capital assets is capital-related debt. Capital assets purchased with <br /> debt proceeds should be capitalized and depreciated over their estimated useful life. <br /> The amount to record for a capital asset is any cost incurred to put the asset into its usable <br /> condition. Donated capital assets should be reported at fair value at the time of acquisition. <br /> Risk Management <br /> 1. The city will maintain a Risk Management Program that will minimize the impact of legal <br /> liabilities,natural disasters or other emergencies through the following acitivies: <br /> • Loss Prevention. Prevent negative occurrences. <br /> • Loss Control. Reduce or mitigate expenses of a negative occurrence. <br /> • Loss Financing. Provide a means to finance losses. <br /> • Loss Information Management. Collect and analyze relevant data to make prudent <br /> loss prevention,loss control and loss financing decisions. <br /> 2. The city will maintain an active Safety Committee comprised of city employees. <br /> 3. The city will periodically conduct educational safety and risk avoidance programs, through its <br /> Safety Committee and with the participation of its insurers,within its various departments. <br /> 4. The city will maintain the highest deductible amount,considering the relationship between <br /> cost and the city's ability to sustain the loss. <br /> Accounting, Auditing, and Financial Reporting <br /> • The city will establish and maintain the highest standard of accounting practices,in <br /> conformity with Generally Accepted Accounting Principles (GAAP). <br /> Financial Management Policies Page 14 <br />