How often does the Borough replace computer equipment and vehicles?

The Borough does maintain a Capitalization and Depreciation policy, which is published in the "Policies and Processes" section of the 2015 Budget beginning on page B-12, should you be interested in more detailed information. The policy offers guidance to management in complying with financial reporting requirements and for planning for the logical replacement of capital assets.

In general, three factors are used to determine the method and timing of replacement: cost, useful life and salvage value. There are, however, some assets (e.g. computers) that have a negligible salvage value at their useful life, so useful life is the only deciding factor for replacement. Computers and Equipment are replaced according to their estimated useful life of 3-7 years. Vehicles, on the other hand, are replaced according to their estimated useful life of 3-12 years, provided that the vehicle under consideration also meets the Borough's minimum mileage/hours use requirement.

For example, Frontline Police Interceptors are replaced after three years and 120,000 miles of use. Dump trucks used in Public Works operations are replaced after 12 years and 65,000 miles of use. The minimum mileage/hours usage is the point at which, on average, a vehicle is reasonably depreciated, but not yet incurring significant maintenance costs. Vehicles that meet both the age and mileage thresholds are sold to the highest bidder and the funds are used to offset the cost of the replacement vehicle.

Show All Answers

1. What is a mill?
2. Why can’t the Borough borrow money from the Parking Fund for the General Fund?
3. Why is the budgetary problem with revenue and not expenditures?
4. Is the Borough running out of money?
5. What is the difference between what Penn State University would pay in real estate taxes versus what is received in impact fees?
6. How often does the Borough replace computer equipment and vehicles?
7. Why don’t the local municipalities consolidate?
8. Does the County or School District provide any financial contributions to the Centre Region Council of Governments (COG)?
9. Has there been any movement of Penn State University to the south of College Avenue and do these properties pay Real Estate Taxes?
10. Is there a forecast for Earned Income and Net Profits Tax related to new development within the Borough?
11. When was the Business Privilege Tax (BPT) eliminated?
12. How can the Borough tax rainwater?