For the purposes of this subchapter, the following definitions apply unless the context clearly requires a different meaning.
CAPITAL OUTLAYS. Expenditures which benefit both the current and future fiscal periods. This includes the costs of acquiring land or structures, constructing or improving buildings, structures or other fixed assets and purchasing equipment which has an appreciable and calculable period of usefulness. These are expenditures resulting in the acquisition of or additions to the government’s general fixed assets.
ENTERPRISE FUNDS.
(1) Those funds used to account for operations:
(a) Which are financed and operated in a manner similar to private business enterprise, where the intent of the governing body is that the costs, that is, the expenses, including depreciation, of providing goods or services to the general pubic on a continuing basis be financed or recovered primarily through user charges; or
(b) Where the governing body has decided that a periodic determination of revenues earned, expenses incurred or net income is appropriate for capital maintenance, public policy, management control, accountability and other purposes.
(2) The ENTERPRISE FUNDS of the town shall include the municipally-owned water, wastewater, and stormwater utilities. The operation of these utilities shall require enterprise fund accounting and reporting.
FIXED ASSET. Tangible assets of a durable nature which are employed in the operating activities of the unit and which are relatively permanent, needed for the production or sale of goods or services and termed property, plant and equipment or fixed assets. These assets are not held for sale in the ordinary course of business. This broad group is usually separated into classes according to the physical characteristics of the items, such as land, buildings, improvements other than buildings, machinery and equipment.
HISTORICAL COST. The case-equivalent price exchanged for goods or services on the date of acquisition. Land, buildings, equipment and most inventories are common examples of items recognized under the HISTORICAL COST attribute.
TANGIBLE ASSETS. Assets which can be observed by one or more of the physical senses. They may be seen and touched and, in some environments, heard and smelled.
(Ord. 2019-13, passed 12-3-2019)