(A) The definition of IMPROVEMENTS OTHER THAN BUILDINGS is improvements to land for better enjoyment which are attached or not easily removed and will have a life expectancy of greater than two years. Examples are walks, parking areas and drives, golf cart and recreational paths, fencing, retaining walls, pools, outside fountains, planters, underground sprinkler systems and other similar items.
(B) Such improvements do not include roads, streets or assets which are of value only to the public. For example, Chestnut Street is a public street whose greatest value is to the public. Roads or drives upon town-owned land which 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 town-owned land for use by the public and for the support of town facilities are capital assets.
(C) The town will capitalize a new improvement other than a building only if it meets the following conditions:
(1) The total cost exceeds $10,000; and
(2) The useful life is greater than five years.
(D) 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 $10,000;
(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.
(E) A department’s donated improvements other than buildings will be recorded at fair market value on the date of transfer, plus any associated costs.
(F) Purchases made using federal or state funding will follow the source funding policies and the procedures in divisions (A) through (E) above.
(Ord. 2019-13, passed 12-3-2019)