(A) (1)Definition. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
“IMPROVEMENTS OTHER THAN BUILDINGS.” Improvements to land for better enjoyment, attached or not easily removed, and which will have a life expectancy of greater than two years.
(2) Examples. Examples are walks, parking areas and drives, golf cart paths, fencing, retaining walls, pools, outside fountains, planters, underground sprinkler systems, and other similar items. Improvements do not include road, streets, or assets that are of value only to the public. For example, 133rd Avenue is a public street with greatest value to the public. Roads or drives upon town-owned land that provide support to town facilities are assets. A sidewalk down the road for public enjoyment is an infrastructure improvement and is not capitalized. However, sidewalks installed upon the town-owned land for use by the public and for the support of town facility are capital assets.
(B) The Town will capitalize new improvements, other than building, only if it meets the following conditions:
(1) The total cost exceeds $5,000.00; and
(2) The useful life is greater than two years.
(C) A department will capitalize improvements or renovations to existing improvements other than buildings only if the result meets the following conditions:
(1) The total cost exceeds $5,000;
(2) The asset’s useful life is extended two or more years; and
(3) The total cost will be greater than the current book value and less than the fair market value.
(D) A department’s donated improvements other than buildings will be recorded at fair market value on the date of transfer with any associated costs.
(E) Purchases made using federal or state funding will follow the source funding policies and above procedures.
(F) A department’s new building will be capitalized only if it meets the following conditions:
(1) The total cost exceeds $5,000; and
(2) The useful life is greater than two years.
(G) A department improving or renovating an existing building will capitalize the cost only if the result meets all of the following conditions:
(1) The total cost exceeds $5,000;
(2) The useful life is extended two or more years; and
(3) The total cost will be greater than the current book value and less than the fair market value.
(H) Capital building costs will include preparation of land for the building, architectural and engineering fees, bond issuance fees, interest cost (while under construction), accounting costs if material, any costs directly attributable to the construction of a building.
(Ord. 692, passed 12-10-96)