(A) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
ENTERPRISE FUNDS. The funds used to account for operations that are financed and operated in a manner similar to private business enterprise where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, and other purposes. The ENTERPRISE FUNDS of the town shall include the municipally-owned water and wastewater utilities. Operation of these utilities shall require ENTERPRISE FUND accounting and reporting.
HISTORICAL COST. The cash equivalent price exchanged for goods or services at the date of acquisition. Land, buildings, equipment, and most inventories are common examples of items recognized under the HISTORICAL COST attribute.
IMPROVEMENTS OTHER THAN BUILDINGS.
(a) Improvements to land for better enjoyment, attached or not easily removed, and will have a life expectancy of greater than two years.
(b) Examples of IMPROVEMENTS OTHER THAN BUILDINGS include walks, parking areas and drives, golf cart paths, fencing, retaining walls, pools, outside fountains, planters, underground sprinkler systems, and other similar items.
(c) IMPROVEMENTS OTHER THAN BUILDINGS do not include roads, streets, or assets that are of value only to the public. For example, Main Street is a public street with greatest value to the public. Roads or drives upon town-owned land that provide support to the town’s facilities are assets. A sidewalk down the road for public enjoyment is an infrastructure improvement and is not capitalized. However, sidewalks installed upon town-owned land for use by the public and for the support of our facility are capital assets.
(B) Conditions for new improvements. The town will capitalize new improvements other than buildings only if it meets the following conditions.
(1) The total cost exceeds $5,000.
(2) The useful life is greater than two years.
(C) Conditions for existing improvements. 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 useful life is extended two or more years.
(3) The total cost will be greater than the current book value and less than the fair market value.
(Ord. 2016-8, passed 5-2-2016)