For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
CAPITAL OUTLAYS. Expenditures which benefit both the current and future fiscal periods. This includes costs of acquiring land or structures; construction or improvement of buildings, structures or other fixed assets; and equipment purchases having an appreciable and calculable period of usefulness. These are expenditures resulting in the acquisition of or addition to the government’s general fixed assets.
ENTERPRISE FUNDS.
(1) Those funds used to account for operations:
(a) That are financed and operated in a manner similar to private business enterprise, where the intent of the governing body is that the costs and expenses, including depreciation, of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or
(b) Where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability and other purposes.
(2) The enterprise funds of the town shall include the municipally owned water and sewer utilities. Operation of these utilities shall require enterprise fund accounting and reporting.
FIXED ASSET. Tangible assets of a durable nature employed in the operating activities of the unit and that are relatively permanent and are needed for the production or sale of goods or services are termed property, plant and equipment or fixed assets. These assets are not held for sale in the ordinary course of business. This broad group is usually separated into classes according to the physical characteristics of the items (for example: land, buildings, improvements other than buildings, machinery and equipment, furniture and fixtures).
HISTORICAL COST. The cash equivalent price exchanged for goods or services at the date of acquisition. Land, buildings, equipment and most inventories are common examples of items recognized under the historical cost attribute.
MACHINERY AND EQUIPMENT. An apparatus, tool or conglomeration of pieces to form a tool. The tool will stand alone and not become part of a basic structure or building.
TANGIBLE ASSETS. Assets that can be observed by one or more of the physical senses. They may be seen and touched and, in some environments, heard and smelled.
(Ord. 354, passed 5-21-1996)