(A) The city will capitalize and tag 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 greater than the above- mentioned limit will be one unit.
(B) Shipping charges, consultant fees, and any other cost directly associated with the purchase, delivery, or set up, (including contractors and/or city workers (salary and benefits)), which makes 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 costs exceed $5,000,
(2) The useful life is extended two or more years, and
(3) The total costs will be greater than the current book value and less than the fair market value.
(D) Examples include:
(1) A work truck being equipped with screens, lights, or radios for use as a single unit throughout its life expectancy is considered one unit.
(2) If police cars are constantly changing light bars or radios to other vehicles, the city will capitalize each piece of equipment separately, if it meets the required dollar amount.
(3) A department's computer (CPU, monitor, keyboard, and printer) is considered one unit.
(E) A department will record donated machinery and equipment at fair market value on the date of transfer with any associated costs.
(F) Purchases made using federal or state funding will follow the source funding policies and above procedures.
(Ord. 2002-13, passed 10-21-02; Am. Ord. 2005-03, passed 3-21-05)