(A) MACHINERY AND EQUIPMENT is an apparatus, tool, or conglomeration of pieces to form a tool. The tool will stand alone and not become a part of a basic structure or building.
(B) (1) The town will capitalize and tag items with an individual value equal to or greater than $750.
(2) Machinery combined with other machinery to form one unit with a total value greater than the limit mentioned in division (B)(1) above will be one unit.
(C) Shipping charges, consultant fees, and any other cost directly associated with the purchase, delivery, or set up; including contractors and/or town workers (salary and benefits), which make such equipment operable for its intended purpose will be capitalized.
(D) Improvements or renovations to existing machinery and equipment will be capitalized only if the result of the change meets all of the following conditions.
(1) The total cost exceeds $750.
(2) The useful life is extended two or more years.
(3) The total costs will be greater than the current book value and less than the fair market value. Examples include:
(a) A work truck being equipped with screens, lights, or radios for use as a single unit throughout its life expectancy is considered one unit;
(b) If police cars are constantly changing light bars or radios to other vehicles, the town will capitalize each piece of equipment separately, if it meets the required dollar amount;
(c) A department’s computer (CPU, monitor, keyboard, and printer) is considered one unit;
(d) A department will record donated machinery and equipment at fair market value of the date of transfer with any associated costs; and
(e) Purchases made using federal or state funding will follow the source funding policies and above procedures.
(Ord. 2016-8, passed 5-2-2016)