1986-03 Amending Title 3 of the KIB Code by Adding Section 3.04.057 Land Valuation.KODIAK ISLAND BOROUGH
ORDINANCE NO. 86- 03 -O(A)
AN ORDINANCE OF THE KODIAK ISLAND BOROUGH, KODIAK, ALASKA AMENDING
TITLE 3 OF THE KODIAK ISLAND BOROUGH CODE BY ADDING SECTION 03.04.057 (LAND
VALUATION).
WHEREAS, by Resolution 81 -97 -R a policy of the Kodiak Island Borough
has been established for valuation of General Fixed Assets and in particular
the valuation of land and buildings, and
WHEREAS, it has been impractical to follow the provision of this
resolution in its entirety, and
WHEREAS, the audit findings as presented in the management letter
with the audit for fiscal year 1985 specifically addresses the inadequacies of
Resolution 81 -97 -R.
that:
NOW THEREFORE, BE IT ORDAINED, by the Kodiak Island Borough Assembly
Section 1. This ordinance is of a general and permanent nature and
i shall become a part of the Kodiak Island Borough Code of Ordinances.
Section 2. A new section, Section 3.04.057, Land Valuation, is
hereby adopted as follows:
03.04.057 General Fixed Assets General Fixed Assets of the
Kodiak Island Borough shall be valued in accordance with generally accepted
accounting principles (GAAP).
A. Land Valuation Generally land shall be valued at cost. If cost
is not known, then land will be valued at fair market value at
date of acquisition. Land acquired through foreclosure or
default on land sale payments will be valued at fair market
value at date of foreclosure or default. Donated land will be
valued at fair market value at date of acquisition.
B. Buildings and improvement valuation All buildings and struc-
tures shall be valued at cost or cost of construction. If cost
is not known then building and improvements will be valued at
fair market value at date of acquisition. Donated buildings
and improvements will be valued at fair market value at date of
acquisition.
C. Other fixed assets Other fixed assets are those fixed assets
(property, plant, and equipment) of the Borough defined as
tangible assets with a useful life in excess of one year, an
initial cost of Five Hundred ($500) Dollars, and those items
that do not lose their identity when used with or applied to
another asset.
D. Exceptions No road, bridge, culvert, viaduct or other such
major asset will be capitalized. These public assets by virtue
of their nature claim a degree of immunity from pilferage,
vandalism and misappropriation.
Section 3. Resolution No. 81 -97 -R is hereby repealed. All
ordinances or parts of ordinances found to be in conflict with this ordinance
are hereby expressly repealed.
Section 4. This ordinance becomes effective upon passage.
PASSED AND APPROVED THIS 6 day of February ,1986 by the Kodiak '
Island Borough Assembly.
e en\ �
oro Jerk
By
By
First Reading, Approval Date: January 2, 1986
Second Reading, Public Hearing, Approval Date:
Passage Date: February 6, 1986
Effective Date: Upon Passage
Recommended By: Finance Director
Ordinance No. 85- 03 -O(A)
Page 2
KODIAK ISLAND BOROUGH
Borough Mayor
,Pre Officer
Reviewed By: Land Manager, Borough Accountant, & Assessor
February 6, 1986