(A) A department shall capitalize buildings at full cost with no subcategories, including the cost of
attachments. Examples of attachments are heating, cooling, plumbing, lighting, or sprinkler systems, or any part of the basic building. The town will include the cost of items designed or purchased exclusively for the building.
(B) A new building shall be capitalized only if it meets the following conditions:
(1) The total cost exceeds $100,000; and
(2) The useful life is greater than two years.
(C) Any department, board or commission improving or renovating an existing building shall capitalize the cost only if the result meets all of the following conditions:
(1) The total cost exceeds $100,000;
(2) The useful life is extended two or more years;
(3) The total cost will be greater than the current book value and less than the fair market value; and
(4) Repairs and rehabilitation of less than $100,000 shall be expenses.
(D) Capital building costs shall include land preparation, architectural and engineering fees, bond issuance fees, attorney and financing costs (during construction), accounting costs, and any costs directly attributable to the construction of a building.
(E) A department shall record donated buildings at fair market value including associated costs on the date of transfer.
(F) Purchases made using federal or state funding shall adhere to the source funding policies and procedures.
(Ord. 10-05-0_, passed - -)