The purpose of the Township's capital equipment program is to plan for the replacement of obsolete equipment and the purchase of new items without implementing significant changes in the tax levy.
The Township will plan for the purchase of any equipment costing over $1,000 and a life of 5 years or more as part of the Township's ten-year capital equipment program.
The Township will plan the capital equipment program to assure that funds remain in a capital equipment fund to accrue interest and use its reserve policy to provide a revenue source for the fund and program.
The Township will anticipate equipment replacements and additions based on realistic asset life expectancies and cash balances.
The Township will project any future operating costs of purchases into the upcoming operating budgets. For example, the addition of park equipment might require more maintenance expenditures in future years.
The Township will maintain its assets to protect its capital investment and to minimize future capital expenditures.
The Township will use the least expensive financing method for all capital equipment purchases including multiple cost estimates and bids when appropriate and required by law.
The Enterprise Funds will contribute on a prorating basis to the purchase of any assets, which they use.