For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
CAPITAL ASSETS. Tangible assets of a durable nature employed in the operating activities of the unit and that are relatively permanent and are needed for the production or sale of goods or services are termed property, plant and equipment or capital 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, infrastructure, improvements other than buildings, machinery, and equipment, furniture and fixtures.)
CAPITAL OUTLAYS. Expenditures which benefit both the current and future fiscal periods. Includes costs of acquiring land or structures; construction or improvement of buildings, structures or other capital assets; and equipment purchases having an appreciable and calculable period of usefulness. CAPITAL OUTLAYS are expenditures resulting in the acquisition of or addition to the government's general capital assets.
ENTERPRISE FUNDS.
(1) Those funds used to account for operations:
(a) That are financed and operated in a manner similar to private business enterprise – where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or
(b) Where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, and other purposes.
(2) ENTERPRISE FUNDS include the municipally owned water and sewage utilities. Operation of these utilities shall require enterprise fund account and reporting.
HISTORICAL COSTS. The cash equivalent price exchanged for goods and services at the date of acquisition. Land, buildings, equipment, and most inventories arc common examples of items recognized under the historical cost attribute.
IMPROVEMENTS OTHER THAN BUILDINGS. Improvements to land for better enjoyment, attached or not easily removed, and which will have a life expectancy of greater than two years. Examples are walks, parking areas and drives, golf cart paths, fencing, retaining walls, pools, outside fountains, planter underground sprinkler systems, and other similar items. IMPROVEMENTS OTHER THAN BUILDINGS do not include roads, streets, or assets that are of value only to the public. For example, Main Street is a public street with the greatest value to the public. Roads or drives upon city-owned land that provide support to our facilities are assets. A sidewalk down the road for public enjoyment is an infrastructure improvement and is not capitalized. However, sidewalks installed upon city-owned land for use by the public and for the support of our facility are capital assets.
MACHINERY AND EQUIPMENT. An apparatus, tool, or conglomeration of pieces to form a tool. The tool will stand alone and not become a part or a basic structure or building.
TANGIBLE ASSETS. Assets that 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. 2002-13, passed 10-21-02; Am. Ord. 2005-03, passed 3-21-05)