HomeMy WebLinkAboutD-2740-24 Fiscal Component SPONSOR(S): Councilors: Green and Aasen
This Ordinance was prepared by Samantha S. Karn, Corporation Counsel, on 9/19/2024 at 11:00 a.m. It may have been subsequently
revised. No subsequent revision to this Ordinance has been reviewed by Ms. Karn for legal sufficiency or otherwise.
ORDINANCE NO. D-2740-24
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA,
AMENDING CHAPTER 2, ARTICLE 1, SECTIONS 2-1, 2-3, 2-6, 2-10, 2-12, 2-13 AND 2-14 OF THE
CARMEL CITY CODE.
Synopsis: Ordinance clarifying purpose and duties of components of government.
WHEREAS, the City of Carmel (“City”), is established as four components of government; and
WHEREAS, it is now necessary for the Carmel City Code to be amended for further clarification of
the purpose and duties of these components.
NOW, THEREFORE, BE IT ORDAINED, by the Common Council of the City of Carmel, Indiana,
as follows:
Section 1. The foregoing Recitals are fully incorporated herein by this reference.
Section 2. The following subsections of Carmel City Code, Chapter, 2, Article 1, Sections 2-1, 2-3, 2-
6, 2-10, 2-11, 2-12, 2-13 and 2-14 are hereby amended, and shall read as follows:
Ҥ 2-1 Four Components of Government.
(a) The government of the City shall consist of four components, those being:
(1) Executive Branch (I.C., 36-4-5)
(2) Legislative Branch (I.C., 36-4-6)
(3) Clerk (I.C., 36-4-10)
(4) Judicial Branch (I.C., 33-35-1) (Ord. D-362, § I, 3-22-83)
§ 2-3 Executive Departments.
(a) The Mayor shall be the chief administrator of the City and shall have control of the day-to-day operations
of the following executive departments which are established.
(1) Department of Community Services. (Ord. D-1193, 1-8-96)
a) Plan Commission. (I.C., 36-7-4 et seq.).
b) Board of Zoning Appeals. (I.C., 36-7-4-900 et seq.).
(2) Engineering Department.
(3) Fire Department.
a) Fire Pension Board (I.C., 36-8-7 [1937 Fund]; I.C., 36-8-8 [1977 Fund]).
(4) Department of Law to be known as the Office of Corporation Counsel. (pursuant to I.C., 36-4-9-12—
City Attorney and attorney for Plan Commission, Board of Zoning Appeals).
(5) Police Department.
a) Police Pension Board. (I.C., 36-8-6 [1925 Fund]; I.C., 36-8-8 [1977 Fund]).
(6) Street Department.
(7) Public Water and Public Wastewater Utilities. (Ord. D-1193, 1-8-96)
(8) Department of Parks and Recreation. (I.C., 36-10-3-1 et seq.) (Ord. D-673, §1, 10-1-90)
(9) Department of Redevelopment. (Ord. D-720, § 1, 8-5-91).
(10) Finance Department.
(11) Department of Economic Development.
Ordinance D-2740-24
Page One of Nine Pages
Docusign Envelope ID: 319F774E-4343-463C-9DF0-896C71B54532
SPONSOR(S): Councilors: Green and Aasen
This Ordinance was prepared by Samantha S. Karn, Corporation Counsel, on 9/19/2024 at 11:00 a.m. It may have been subsequently
revised. No subsequent revision to this Ordinance has been reviewed by Ms. Karn for legal sufficiency or otherwise.
(12) Marketing and Community Relations Department.
(13) Department of Human Resources.
(14) Technology Department.
(15) Brookshire Golf Course.
(b) Pursuant to IC 36-4-9-6, The Mayor shall appoint the following who serve at her pleasure:
1. The chiefs of the Fire and Police Departments
2. The Directors of the Department of Finance who serves as the City Controller, the Engineering
Department who serves as the City Civil Engineer, the Department of Law who serves as the
Corporation Counsel, and;
3. The Directors of other departments established by City Council per IC 36-4-9-4.
§ 2-6 The Controller
The Controller is the fiscal officer of the City and shall be the director of the Finance Department. He or
she shall perform the duties assigned by I.C., 36-4-10-5, and such other duties as the Common Council may,
by ordinance, require.
§ 2-6.1 Claim Payments in Advance of Council Allowance.
(a) The fiscal officer may submit claim payments in advance of Council approval for specific types of
expenses. The City's legislative body having jurisdiction over the approval shall review and act upon the
claim at its next regular or special meeting following the preapproved payment.
(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, utility connection charges, internet and mobile phone charges, and fuel
charges for City vehicles.
(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) Maintenance agreements, service agreements or lease payments.
(8) Bond or coupon payments.
(9) Payroll.
(10) Federal, state or county taxes.
(11) Expenses that must be paid because of emergency circumstances.
(12) A product or service for which the City legislative body had accepted a bid.
(13) Petty Cash Funds as established pursuant to City Code § 2-114.
(14) Legal settlements which have been approved by the Corporation Counsel and are within the
Corporation Counsel's settlement authority pursuant to City Code § 2-9.1.
(15) Payments for special land acquisition projects as directed in advance by resolution of the
City’s legislative body.
(16) Payments made pursuant to City Code § 2-61(b), (c), (d) and other reimbursements
permitted by the City Code.
(17) Refunds to City of Carmel customers.
Ordinance D-2740-24
Page Two of Nine Pages
Docusign Envelope ID: 319F774E-4343-463C-9DF0-896C71B54532
SPONSOR(S): Councilors: Green and Aasen
This Ordinance was prepared by Samantha S. Karn, Corporation Counsel, on 9/19/2024 at 11:00 a.m. It may have been subsequently
revised. No subsequent revision to this Ordinance has been reviewed by Ms. Karn for legal sufficiency or otherwise.
(18) Wire transfers for land purchases, payroll, health insurance, and debt service, all of which
have been budgeted and/or approved by the legislative body.
(b) Each payment of expenses under this section must be supported by a fully itemized claim.
§ 2-6.2 Capital Asset Policy.
(a) Definition of Capital Assets.
(1) Capital Assets are assets that are used in operations and have an initial useful life in excess of
one year. The term includes both tangible assets (land, construction in progress, buildings, building
improvements, vehicles, machinery, equipment, works of art, historical treasures, infrastructure) and
intangible assets (easements, software, water rights). Assets acquired for the purpose of sale or
investment do not qualify as capital assets, regardless of their form, because they are not used in
operations.
(2) The City has a minimum capitalization threshold of $5,000. The capitalization threshold is
applied to individual items in a group of items, rather than to the group as a whole, unless the effect of
doing so would be to eliminate a significant portion of total capital assets. Assets that are not capitalized
(items less than $5,000 and greater than $1,000) are expensed in the year of acquisition. An inventory is
kept of all assets greater than $1,000.
(b) Major Capital Asset Classes. In order to ensure that governmental entities have an accurate,
complete, and current record of capital assets, it is important that asset categories are appropriately
determined. This section further clarifies the asset definition by major category.
(1) Land. Land is defined as specified land, lots, parcels or acreage including rights of way owned by
the City of Carmel, its various departments, boards or commissions, regardless of the method or date of
acquisition. Easements are not 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. The City Utility,
however, does capitalize easements.
(2) Buildings.
a) Buildings are defined as permanent (non-moveable) structures. Any structures designed and
erected to house equipment services or functions are included. This includes systems, services, and
fixtures within the buildings, as well as attachments such as porches, stairs, fire escapes, canopies,
areaways, lighting fixtures, flagpoles, sound equipment, security cameras, lifts and riggings, curtains and
staging and all other such units that serve the building.
b) Plumbing systems, lighting 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 as part of the building if it is owned. Communications antennas and/or
towers are not included because they are treated as part of the equipment unit.
(3) Improvements Other Than Buildings. Improvements other than buildings have a limited useful
life. Examples of the Civil City assets in this category are parking areas, drives, fencing, pools, fountains,
underground sprinkler systems, decorative street lighting and other similar items. Examples of the City
Utilities assets are water supply mains, collection sewers, wells, fences, intake pipes, manholes, and fire
hydrants.
Ordinance D-2740-24
Page Three of Nine Pages
Docusign Envelope ID: 319F774E-4343-463C-9DF0-896C71B54532
SPONSOR(S): Councilors: Green and Aasen
This Ordinance was prepared by Samantha S. Karn, Corporation Counsel, on 9/19/2024 at 11:00 a.m. It may have been subsequently
revised. No subsequent revision to this Ordinance has been reviewed by Ms. Karn for legal sufficiency or otherwise.
(4) Furnishings and Equipment. The furnishings and equipment asset class is used to account for
moveable items. Included within this category are office equipment, office furniture, appliances,
furnishings, machinery items, maintenance equipment, communication equipment, police, fire, laboratory
equipment, vehicles, road equipment, aircraft, emergency equipment, earth moving equipment, text
equipment, civil defense equipment, law enforcement equipment, and data processing equipment. Supplies
are excluded.
(5) Infrastructure. Infrastructure assets are long-lived capital assets that normally are stationary in
nature and can be preserved for a significantly greater number of years than most capital assets and that
are normally stationary in nature. Examples include roads, streetlights, traffic signals, drainage systems,
and water lines. 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 described above.
(6) Construction in Progress. Construction, or development, in progress is a special class of
capital assets that are still in the process of construction (tangible) or development (intangible).
Depreciation does not begin until the capital assets are substantially ready to be placed in service.
(7) Other Capital Assets. This is a separate category for capital assets that do not fit into any of
the major asset classes listed above.
(c) Threshold Levels for Capital Assets. The following schedule will be used for capitalization and
depreciation of the City's capital assets. Amounts are based on governmental entities with revenues
exceeding $100 million.
Capitalize/Depreciate
Capitalize/Depreciate
Land Capitalize only
Land Improvements $50,000
Buildings $100,000
Building Improvements $100,000
Construction in Progress Capitalize only
Machinery and Equipment $5,000
Vehicles $5,000
City Utility Assets $5,000
Computer Software $5,000
Infrastructure $3,000,000
Ordinance D-2740-24
Page Four of Nine Pages
Docusign Envelope ID: 319F774E-4343-463C-9DF0-896C71B54532
SPONSOR(S): Councilors: Green and Aasen
This Ordinance was prepared by Samantha S. Karn, Corporation Counsel, on 9/19/2024 at 11:00 a.m. It may have been subsequently
revised. No subsequent revision to this Ordinance has been reviewed by Ms. Karn for legal sufficiency or otherwise.
(d) Valuation of Capital Assets.
(1) Capital assets should be recorded at historical cost and should include the cost of freight, site
preparation, architect and engineering fees and other costs as applicable. If a method other than cash is
used to pay for the asset, then the fair-market value of the non-cash payment or consideration determines
the asset's cost or acquisition value. When the value of the consideration paid cannot be determined, the
asset's fair market value determines its cost.
(2) With a few exceptions, an asset's cost should also include necessary costs incurred to place the
asset in service. Costs include the invoice price plus incidental costs (insurance during transit, freight,
capitalized interest, duties, title search, registration fees and installation costs). Exceptions to the rule
include interest expenses associated with deferred payments and real estate taxes paid, if any, in the
acquisition of property.
(e) Depreciation Method and Salvage Value.
(1) Depreciation is the process of allocating the cost of tangible property over a period of time,
rather than deducting the cost as an expense in the year of acquisition. Generally, at the end of the asset's
life, the sum of the amounts charged for depreciation in each accounting period (accumulated
depreciation) will equal original cost less salvage value. The City depreciates its capital assets by using
the Straight-Line Method. Under this method, the basis of the asset is written off evenly over the useful
life of the asset. The same amount of the depreciation is taken each year. Depreciation is calculated at the
end of each fiscal year.
(2) The salvage value of an asset is the value it is expected to have when it is no longer useful for its
intended purpose. In other words, the salvage value is the amount for which the asset could be sold at the
end of its useful life. The City determines salvage value on an asset-by-asset basis.
(f) Estimated Useful Lives of City Assets. The following 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 reported. The most common useful lives are as follows:
(1) City Civil.
a) Vehicles - 5 years.
b) Police Vehicles - 4 years.
c) Office Equipment - 5 years.
d) Office Furniture - 20 years.
e) Heavy Equipment - 10 years.
f) Fire Trucks - 15 years.
g) Ambulances - 10 years.
h) Buildings - 50 years.
i) Building Components (HVAC systems, roofing) - 20 years.
j) Leasehold Improvements - useful life of asset or lease term (whichever is shorter).
k) Land Improvements - structure (parking lots, athletic courts, swimming pools) - 20 years.
l) Land Improvements - groundwork (golf course, athletic fields, landscaping, fencing) - 20
years.
m) Outdoor Equipment - (playground equipment, radio towers) - 15 years.
n) Grounds Equipment - (mowers, tractors, attachments) - 15 years.
o) Computer Software - 5 years.
p) Security Cameras -10 years.
q) Stage Lighting - 5 years.
Ordinance D-2740-24
Page Five of Nine Pages
Docusign Envelope ID: 319F774E-4343-463C-9DF0-896C71B54532
SPONSOR(S): Councilors: Green and Aasen
This Ordinance was prepared by Samantha S. Karn, Corporation Counsel, on 9/19/2024 at 11:00 a.m. It may have been subsequently
revised. No subsequent revision to this Ordinance has been reviewed by Ms. Karn for legal sufficiency or otherwise.
r) Mobile Stage Trailer - 10 years.
s) Rigging and Lifts - 10 years.
t) Sound Equipment for Palladium - 10 years.
(2) City Utility - Water.
a) Buildings and Improvements - 50 years.
b) Transmission and Distribution Mains - 50 to 75 years.
c) Meters/Meter Installation - 25 to 30 years.
d) Pumping Equipment - 50 years.
e) Water Treatment Equipment - 50 years.
f) Elevated Storage - 75 years.
g) Office Equipment - 5 years.
h) Machinery - 5 to 40 years.
i) Hydrants - 50 to 75 years.
j) Well Equipment - 15 to 20 years.
k) Wells - 50 to 100 years.
l) Communications Equipment - 10 years.
m) GPS - 100 years.
n) Clearwell - 100 years.
(3) City Utility - Sewer.
a) Buildings and Improvements - 50 years.
b) Sewer Lines - 50 years.
c) Lift Station - 50 years.
d) Treatment Plant Equipment - 10 years.
e) Office Equipment - 5 years.
f) Machinery – 6 to 20 years.
g) Vehicles - 5 years.
h) HVAC Systems - 25 years.
i) GPS - 100 years.
j) Computer Software - 5 years.
(4) Infrastructure. The following is the list of networks and their useful lives:
a) Roads/Streets Network.
Subsystems: Types of Roads/Streets, Curbs, and Sidewalks - 45 years.
b) Traffic Components Network.
Subsystems: Traffic Signals -35 years.
Street lights - 25 years.
c) Drainage Systems Network - 50 years.
(g) Capital Leases.
(1) Leased equipment should be capitalized if the lease agreement meets any one 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.
c) The lease term is equal to 75% of the estimated economic life of the leased property (and the
lease is non-cancellable during that time).
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.
Ordinance D-2740-24
Page Six of Nine Pages
Docusign Envelope ID: 319F774E-4343-463C-9DF0-896C71B54532
SPONSOR(S): Councilors: Green and Aasen
This Ordinance was prepared by Samantha S. Karn, Corporation Counsel, on 9/19/2024 at 11:00 a.m. It may have been subsequently
revised. No subsequent revision to this Ordinance has been reviewed by Ms. Karn for legal sufficiency or otherwise.
(2) Leases that do not meet any of the above criteria are considered operating leases.
(h) Assets Not Capitalized.
(1) Assets less than $5,000 are expensed in the year of acquisition. Assets greater than $1,000 are
recorded in the General Ledger.
(2) Exceptions are:
a) Items costing less than the above limits which are permanently installed as a 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; and
b) 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; and
c) Cabinets, shelving, bookcases, and similar items, added subsequent to original construction,
which are custom made for a specific place and adaptable elsewhere, will be capitalized.
(i) Capital Assets Purchased With Grant Funds. When Federal Grant Funds are used to purchase
capital assets, compliance with the applicable Subparts of Part 200 - Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards in the Code of Federal
Regulations is required. All grant types typically have requirements specified in the Grant Award Letter
with which the City must comply.
(j) Asset Acquisition, Transfer and Disposal. City assets may be acquired or disposed of using
various methods, as described in supplemental City documentation and forms. The following
procedure must be observed for all acquisitions, transfers and disposals of assets: complete the
requisite forms, obtain the signature of the Department Director and forward the completed
documentation to the Fiscal Office for recording purposes.
(k) Reporting of Fraud. Any city employee who suspects the misappropriation of capital assets
should follow the applicable requirements outlined in Ordinance No. D-2286-16. This Ordinance
establishes a policy on materiality and the process for reporting material variances.
§ 2-6.3 Advance Payments for Goods and Services.
(a) Advance payments for goods or services before the goods are delivered or services are
completed are hereby authorized.
(b) Advance payments for goods and services may not exceed the lesser of the following:
(1) Fifty percent of the entire cost of the contract.
(2) $2,000,000.
(c) The City’s fiscal officer or the fiscal officer's designee must do all of the following when advance
payments are made:
(1) Track prepayments by defining the prepayment on a purchase order.
(2) Create a prepayment invoice that is associated with the purchase order.
(3) Require insurance or a surety bond in the amount of the prepayment if the amount of the
prepayment is more than $150,000.
Ordinance D-2740-24
Page Seven of Nine Pages
Docusign Envelope ID: 319F774E-4343-463C-9DF0-896C71B54532
SPONSOR(S): Councilors: Green and Aasen
This Ordinance was prepared by Samantha S. Karn, Corporation Counsel, on 9/19/2024 at 11:00 a.m. It may have been subsequently
revised. No subsequent revision to this Ordinance has been reviewed by Ms. Karn for legal sufficiency or otherwise.
Division III. Clerk
§ 2-10 – Reserved for Future Use
§ 2-12 - Reserved for Future Use.
§ 2-13 Reserved for Future Use
§ 2-14 Reserved for future use”
Section 3. All prior ordinances or parts thereof inconsistent with any provision of this Ordinance
are hereby repealed, to the extent of such inconsistency only, as of the effective date of this Ordinance, such
repeal to have prospective effect only. However, the repeal or amendment by this Ordinance of any other
ordinance does not affect any rights or liabilities accrued, penalties incurred or proceedings begun prior to the
effective date of this Ordinance. Those rights, liabilities and proceedings are continued and penalties shall be
imposed and enforced under such repealed or amended ordinance as if this Ordinance had not been adopted.
Section 4. If any portion of this Ordinance is for any reason declared to be invalid by a court of
competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance
so long as enforcement of same can be given the same effect.
Section 5. The remaining portions of Carmel City Code Sections 2-3, 2-6, 2-10, 2-11, 2-12, 2-13
and 2-14 are not affected by this Ordinance upon its passage.
Section 6. This Ordinance shall be in full force and effect from and after the date of its passage
and signing by the Mayor and such publication as required by law.
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Ordinance D-2740-24
Page Eight of Nine Pages
Docusign Envelope ID: 319F774E-4343-463C-9DF0-896C71B54532
SPONSOR(S): Councilors: Green and Aasen
This Ordinance was prepared by Samantha S. Karn, Corporation Counsel, on 9/19/2024 at 11:00 a.m. It may have been subsequently
revised. No subsequent revision to this Ordinance has been reviewed by Ms. Karn for legal sufficiency or otherwise.
PASSED by the Common Council of the City of Carmel, Indiana, this day of ________,
2025, by a vote of _____ ayes and _____ nays.
COMMON COUNCIL FOR THE CITY OF CARMEL
Adam Aasen, President Matthew Snyder, Vice-President
Rich Taylor Anthony Green
______________________________
Jeff Worrell Teresa Ayers
Shannon Minnaar Ryan Locke
______________________________
Anita Joshi
ATTEST:
______________________________
Jacob Quinn, Clerk
Presented by me to the Mayor of the City of Carmel, Indiana this day of
, 2025, at _______ __.M.
Jacob Quinn, Clerk
Approved by me, Mayor of the City of Carmel, Indiana, this day of
, 2025, at _______ __.M.
Sue Finkam, Mayor
ATTEST:
Jacob Quinn, Clerk
Ordinance D-2740-24
Page Nine of Nine Pages
Docusign Envelope ID: 319F774E-4343-463C-9DF0-896C71B54532
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