Such renewals shall be capital expenditures which shall cause the annual estimate for accrued reserves from depreciation and replacement to be evaluated in terms of extended useful life as a result of preventative maintenance programs, or such renewals. The expenditures to overcome physical and/or functional obsolescence shall be capitalized against the element of the facility and costed to the fixed assets group of accounts as an improvement to such element. Future estimates of accrued reserve requirements shall be evaluated and reflected in the depreciation and replacement reserve requirements.
(Ord. 87-4536, passed 4-7-1987)