Capital outlays are defined as “tangible or intangible outlays that are used in the operation of the Village and have an initial useful life extending beyond a minimum reporting period of three fiscal years, such as land, improvements to land, buildings, building improvements, vehicles, machinery, equipment, infrastructure, and certain intangible outlays.” Examples of infrastructure include roads, bridges, curbs, sidewalks, drainage systems, dams, water and sewer systems, electric generation and distribution systems, park improvements, and lighting systems. Examples of intangible outlays include water rights and computer software costs. Ownership is the basis for reporting capital outlays with the exception of situations where more than one party is involved. In these cases, the party who has the risks and benefits of ownership, but not necessarily the title or deed, or who is primarily responsible for the outlay’s management and maintenance shall record the capital outlay. In governmental accounting, there are generally two types of capital outlays. There are outlays that belong to the general government (i.e. General Capital Outlays) and outlays that belong to proprietary funds (i.e. Enterprise and Internal Service Funds).
(Ord. 2017-3-7, passed 5-22-17)