The land held for resale is recorded in the Housing Asset Fund as property held for resale at the lower of cost or market. At June 30, 2025, the cost of the property held for resale for various housing properties in Palm Desert totaled $61,516.
Capital assets, which include property, equipment, and infrastructure assets (e.g., roads, traffic signals, drainage systems and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets are defined by the City as assets with an initial cost above the amounts described in the table below and an estimated life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.
The City has reported general infrastructure assets acquired in prior and current years.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
Capital assets of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives:
| Asset Type | Capitalization Threshold | Useful Life | Subject to Depreciation? |
|---|
| Land | $ - | Infinite | No |
|---|
| Buildings | $ 100,000 | 20-50 Years | Yes |
|---|
| Infrastructure | $ 100,000 | 10-50 Years | Yes |
|---|
| Improvements Other than Buildings | $ 100,000 | 20-50 Years | Yes |
|---|
| Equipment, Furniture & Vehicles | $ 10,000 | 3-15 Years | Yes |
|---|
| Intangible Assets - Permanent Easements | $ 10,000 | Infinite | No |
|---|
| Intangible Assets - Temporary Easements | $ 10,000 | 5 Years | Yes |
|---|
| City-Owned or Developed Software | $ 100,000 | 5 Years | Yes |
|---|
| Works of Art/Historical Treasures | $ 10,000 | Infinite | No |
|---|
| Construction in Progress | $ - | N/A | No |
|---|
| Lease and SBITA Assets | $ 10,000 | 5 Years | No |
|---|
Inventory in the amount of $352,900 and $55,502, for the Desert Willow Golf Course Enterprise Fund (Primary Government) and Palm Desert Recreational Facilities Corporation (Component Unit), respectively, are reported at lower of cost or market. These inventories are held for resale.
Inventory in the amount of $14,825 in the Governmental Funds are also reported at lower cost or market. Inventory and prepaid costs are recorded as an expenditure when consumed rather than purchased.
Certain payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid costs in the government-wide and fund financial statements.