(A) It is important to the maintenance of accurate records that each asset category be precisely defined and that all persons responsible for records maintenance be fully aware of the categorization system. This section further clarifies the asset definitions by major category.
(B) LAND is defined as specified real estate, lots, parcels or acreage, including rights-of-way, owned by the town, its various departments, boards or authorities, regardless of the method or date of acquisition. Easements and rights-of-way will not be included because the town does not own them, but simply has an interest in that land owned by another property owner that entitles the town to a specified limited use of that land.
(C) IMPROVEMENTS OTHER THAN BUILDINGS.
(1) Examples of municipal assets in this category are sidewalks, parking areas, driveways, fencing, retaining walls, pools, fountains, planters, underground sprinkler systems, and other similar items.
(2) Examples of utility assets in this category are supply mains and pipes, collection sewers, wells, dams, lift stations, fences, intake pipes, manholes and fire hydrants.
(D) BUILDINGS.
(1) All structures designed and erected to house equipment, services or functions are included. This includes systems, services and fixtures within the buildings, and attachments such as porches, stairs, fire escapes, canopies, areaways, lighting fixtures, flagpoles and all other such units that serve the building.
(2) Plumbing systems, lighting systems, heating, cooling, ventilating and air handling systems, alarm 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 with the building, if owned. Communication antennas and towers are not included as buildings: these are EQUIPMENT, defined below.
(E) EQUIPMENT includes all other types of physical property within the scope of the fixed asset management system not previously classified. Included within this category are office equipment, office furniture, appliances, furnishings, machinery items, maintenance equipment, communication equipment, Police, Fire, Street, Sanitation and Park Department equipment, laboratory equipment, vehicles, road equipment, aircraft, emergency equipment, earth moving equipment, civil defense equipment, and data processing equipment. All supplies and consumables serving equipment are not capital assets and are excluded.
(F) INFRASTRUCTURE ASSETS are long-lived capital assets that normally 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 storm- and wastewater systems. INFRASTRUCTURE ASSETS do not include buildings, drives, parking lots, or any other examples given above that are incidental to property or access to property.
(1) Additions and improvements to infrastructure that increase the capacity or efficiency of the asset shall be capitalized. Maintenance and repairs shall be considered as necessary to maintain the existing asset, and therefore shall not be capitalized. For example, patching, resurfacing and snow removal are considered maintenance activities and will be expensed. Also, normal department operating activities related to infrastructure, such as feasibility studies and preliminary engineering and design, shall be expensed and not capitalized as an element of the infrastructure asset.
(2) Alleys will not be included as infrastructure because existing improved alleys will simply be maintained as alleys, and the town is responsible only for basic maintenance, such as patching and repairing, of those alleys. Therefore, the town will not track and value alleys, and patching or repairs of alleys will be expensed as they occur.
(3) The retroactive reporting requirements for infrastructure of GASB 34 requires the town to report items put into service from 1980 forward, and gives the town the option to report items put into service prior to 1980. The town hereby elects report only on items put into service after 1980.
(Ord. 3-19-2014, passed 3-19-2014)