(a) The definition of machinery and equipment is an apparatus, tool or conglomeration of pieces to form a tool. The tool will stand alone and not be a part of the basic structure or building.
(b) The City shall capitalize and tag items with an individual value equal to or greater than $2,000. Machinery combined with other machinery to form one unit with a total value greater than $2,000 will be one unit.
(c) Shipping charges, consultant fees, and any other cost directly associated with the purchase, delivery, or set up that makes such equipment operable for its intended purpose shall be capitalized.
(d) Improvements or renovations to existing machinery and equipment shall be capitalized only if the result of the change meets all of the following conditions:
(1) Costs for improvements and renovations exceed $2,000;
(2) The useful life is extended two or more years; and
(3) The total costs will be greater than the current book value and less than the fair market value.
(e) Purchases made using federal or state funding shall follow the source funding policies and procedures.
(Ord. D-1546-01, 12-17-01; Ord. D-2067-11, 11-7-11)