(A) The definition of
MACHINERY and EQUIPMENT is an apparatus, tool, or conglomeration of pieces to form a tool. The tool will stand alone and not become a part of a basic structure of the building.
(B) The town will capitalize and tag items with an individual value equal to or greater than $1,000. Machinery combined with other machinery to form one unit with a total value greater than the above mentioned limit will be one unit.
(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 cost exceeds $1,000;
(2) The useful life is extended 2 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 town 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;
(4) A department will record donated machinery and equipment at fair market value on the date of transfer with any associated costs;
(5) Purchases made using federal or state funding will follow the source funding policies and above procedures.
(Ord. 122000B, passed 1-17-2001)