(A) There is an inherent difference between the terms capital and expense. Capital is defined as an asset or improvement to an asset that is at or above the stated capitalization threshold for its particular classification.
(B) A capital asset or capital asset improvement may increase capacity, efficiency, or extend the estimated useful life.
(C) An expense activity merely maintains, restores, or repairs an asset to the original service potential but does not necessarily improve the asset.
(D) See addendum to this policy (attached to Ordinance 2020-19 and incorporated herein by reference) for further definitions and examples.
(Ord. 2020-19, passed 11-10-2020)