(A) The town will capitalize infrastructure with original cost or estimated or known value of $5,000 or more at the time of acquisition. Infrastructure for general town assets includes such items as roads and streets, street lighting systems, bridges, overpasses, sidewalks, curbs, and storm water collection systems. For business like departments of electric, sewer, and water infrastructure, includes the distribution or collection systems. Electric systems include assets such as electric lines, substations, and transformers. Sewer systems include assets such as sewer lines, manholes, and lift stations. Water systems include assets such as water lines, valves, and fire hydrants. For new infrastructure, the costs of engineering and construction shall be included. Location and estimated or known date of construction or acquisition shall be included.
(B) Extensions of or replacements of infrastructure assets will only be included if the cost of installation, extension of, or replacement is $5,000 or greater.
(C) Infrastructure acquired from developers or annexation shall be included at fair market value at the time of acquisition.
(D) Infrastructure acquired with state or federal dollars will be included on the same basis as indicated in divisions (A) and (B) above regarding infrastructure.
(E) Electric, sewer, and water infrastructures will be depreciated using life expectancy of the infrastructure and straight line depreciation.
(F) Maintenance or repairs necessary to maintain the existing infrastructures will be expensed. For example, milling and paving, patching, resurfacing, snow removal, and the like, are considered maintenance activities and will be expensed. Department operating activities such as feasibility studies will be expensed and not capitalized as an element of the infrastructure asset.
(G) Department operating activities such as feasibility studies will be expensed and not capitalized as an element of the infrastructure asset.
(Ord. 2018-4, passed 2-14-2018)