(A) The town will capitalize items with an individual value equal to or greater than $5,000. Machinery combined with other machinery to form one unit with a total value equal to or greater than the above mentioned limit will be included as one unit.
(B) Shipping charges, consultant fees, and other costs 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.
(C) 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) Total cost is $5,000 or more;
(2) The useful life is extended by two or more years.
(D) A department will record donated machinery and equipment at fair market value on the known or estimated date of transfer with any associated costs.
(E) Purchases using federal or state funding will follow the source funding policies and above procedures.
(Ord. 08-002, passed 4-21-08)