(A) Capital assets include: land, land improvements, including monuments, buildings, building improvements, construction in progress, machinery and equipment, vehicles and infrastructure. All land will be capitalized but not depreciated. All items with a useful life of more than one year, having a unit cost of $5,000 or more shall be capitalized (including acquisitions by lease-purchase agreements and donated items). A capital asset meeting the criteria will be reported and depreciated in the government wide financial statements.
(B) Assets that are not capitalized (items less than $5,000) are expensed in the year of acquisition. An inventory will be kept on all computers and other equipment with a capitalized cost of less than $5,000. (See § 35.67)
Exceptions are:
(1) Items costing less than the above limits which are permanently installed as a part of the cost of original construction or installation of a larger building or equipment unit will be included in the cost of the larger unit;
(2) Modular equipment added subsequent to original equipment construction of a larger building or equipment unit which may be put together to form larger units costing more than the prescribed limits will be charged to capital assets though the cost of individual items is less than such units;
(3) Cabinets, shelving, bookcases, and similar items, added subsequent to original construction, which are custom made for a specific place and adaptable elsewhere, will be capitalized.
NOTE: Purchases made using grant funds must comply with grant requirements or the above procedures, whichever are the most restrictive.
(C) Threshold levels for capital assets. The following schedule will be followed for the different types of capital assets other than infrastructure assets:
Capitalized/Depreciate
Land All/Capitalize only
Land Improvements $5,000.00
Building $5,000.00
Building Improvements $5,000.00
Construction in Progress All/Capitalize only
Machinery and Equipment $5,000.00
Vehicle $5,000.00
Utility Assets $5,000.00
(D) Infrastructure.
(1) At the network level, the asset will be classified as major if the cost of the network item is at least 10% of the cost of all capital assets in fiscal year 1999. A network will be defined as a group of similar assets that serve a particular function or purpose for the town.
(2) At the subsystem level, the asset will be classified as major if the cost of the subsystem item is at least 5% of the cost of all capital assets in fiscal year 1999. A subsystem will be defined as a segment of a network of assets that serve a similar function for the town.
(Ord. 2005-014, passed 5-9-05)