RES 14-656RESOLUTION NO. 14 -656
A RESOLUTION of the City Council of the City of Federal Way,
Washington, Modifying the Capitalization Threshold Dollar Amount for
Equipment and Vehicles.
WHEREAS, the City Council of the City of Federal Way has adopted a One Thousand Dollar
($1,000) threshold amount for capitalization of equipment and vehicles; and
WHEREAS, the Government Finance Officers Association has recommended for several
years a threshold amount of Five Thousand Dollars ($5,000); and
WHEREAS, the One Thousand Dollar ($1,000) threshold requires a significant amount of
Staff resources to document the assets;
WHEREAS, the staffing in the Finance Department has been reduced from eight to seven;
WHEREAS, the modifying the capitalization threshold dollar amount would not change the
tracking of assets below the Five Thousand Dollar ($5,000) because the items would fall under the
categories of "Small Office Equipment" or "Small Tools /Equipment" in future budget documents;
and
WHEREAS, the City Council of the City of Federal Way finds that it is in the best interest of
the citizens modify the threshold dollar amount for the capital assets for equipment and vehicles;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
RESOLVES AS FOLLOWS:
Section 1. Capitalization Threshold Dollar Amount for Equipment and Vehicles. The
capitalization threshold dollar amount for equipment and vehicles is hereby increased from One
Thousand Dollars ($1,000) to Five Thousand Dollars ($5,000).
Resolution No. 14 -656 Page I of 3
Section 2. Severability. If any section, sentence, clause or phrase of this resolution should be
held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity or constitutionality of any other section, sentence,
clause or phrase of this resolution.
Section 3. Corrections. The City Clerk and the codifiers of this resolution are authorized to
make necessary corrections to this resolution including, but not limited to, the correction of
scrivener /clerical errors, references, resolution numbering, section/subsection numbers and any
references thereto.
Section 4. Ratification. Any act consistent with the authority and prior to the effective date
of this resolution is hereby ratified and affirmed.
Section 5. Effective Date. This resolution shall be effective immediately upon passage by
the Federal Way City Council.
RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON this 4t' day of March, 2014.
ATTEST:
CITY CLERK, CAROL MCNEILLY, CMC
CITY OF FEDERAL
Resolution No. 14 -656 Page 2 of 3
APPROVED AS TO FORM:
T-
CITY ATTORNEY, PATRICIA A. RICHARDSON
FILED WITH THE CITY CLERK: 2/26/2014
PASSED BY THE CITY COUNCIL: 3/4/2014
RESOLUTION NO.: 14 -656
Resolution No. 14 -656 Page 3 of 3