Capital Asset Policy (#2026-02)

Victoria, Prince Edward Island · adopted 2026-01-12

This is an automated transcription (OCR) of the captured official document — minor recognition errors are possible; the source document governs. Snapshot 05f02366a09a · verified 2026-06-04 · original document · archived snapshot · unofficial consolidation, the official version is held by the municipal clerk.

POLICY TITLE: CAPITAL ASSET POLICY POLICY NUMBER: 2026-02 APPROVAL DATE: January 12, 2026 ## Policy Statement This capital asset policy is established to give directives/guidelines on the life cycle and amortization of capital assets belonging to the Rural Municipality of Victoria. ## Criteria and Conditions Guidelines 1. All expenditures of a capital nature with an expected useful life of 3 years and greater with a cost of $1,000 or greater will be recorded as a capital asset. 2. All capital assets will be amortized on the straight line basis over their expected useful lives using the following guidelines: - Buildings -- 40 years - Land Improvements (incl. new parks) -- 20 years - Fire trucks and heavy equipment -- 15 years - Fire and general equipment -- 10 years - Park and Playground equipment -- 15 years - Office and computer equipment -- 5 years - Motor vehicles -- 10 years - Water & Sewer Systems (as outlined in Island Regulatory & Appeals Commission guidelines) 3. The costs and accumulated amortization will be deducted from balance as follows: - For fire trucks, heavy equipment, motor vehicles, land and buildings when sold or disposed of. - For all other equipment after 15 years. - This capital asset policy replaces policy #2018-03, dated April 9, 2018 replaces any existing capital asset policy on file with the Rural Municipality of Victoria.