Distinguishing between Capital Expenditures & Maintenance ...



Distinguishing between Capital Expenditures & Maintenance Expenses

The following table is a guide for differentiating between what should be treated in budgeting and reserve processing as a “capital expenditure” and as a “maintenance expense.”

| |Paid either from Reserves or from Annual Operating Budget |Paid from Annual Operating |

| | | |

| |Capital Expenditures |Maintenance Expenses |

|Categories: | | |

| | | | | |

| | |“Major” |“Routine” |Paid from O & M |

| | |usually from |usually from Annual Op| |

| | |Replacement Reserve |Budget | |

|Appliances | | | | |

|Range, Refrigerator, |Purchase of new |X |X |Replacing or repairing components (burners, bibs,|

|Range Hood, Washer & Dryer, Garbage |Appliances to replace |(>1unit) |(1 unit) |elements, controls, valves, wiring) |

|Disposal, |old units. | | | |

|Ceiling Fan, Water | | | | |

|Heater, et. | | | | |

| | | | | |

|Carpet and Vinyl |Replacement |X |X |Repairs; patching; shampooing & cleaning; |

| | |(>1unit) |(1 unit) |hardware replacement |

| | | | | |

|Painting - Interior |Painting multiple units |X | |Upon move-out: painting; touch-up painting |

| | | | | |

|Painting - Exterior |Painting an entire |X | |Touch-up painting; graffiti removal |

| |building or project | | | |

| | | | | |

|Cabinets & Countertop |Replacement |X |X |Repairs; component & hardware replacement |

|Kitchen & Bathroom | |(>1unit) |(1 unit) | |

| | | | | |

|Doors |Replacement |X |X |Repairs; hardware replacement |

|Exterior & Interior | |(>1unit) |(1 unit) | |

| | | | | |

|Windows & Screens |Replacement |X |X |Window shades & curtains; hardware replacement; |

| | |(>1unit) |(1 unit) |fixing broken windows & screens; caulking & |

| | | | |sealing |

| | | | | |

|Air Conditioning & Heating |Replacement or |X |X |Repairs; replacement of components; changing |

| |Major overhaul |(>1unit) |(1 unit) |filters |

| |Paid either from Reserves or from Annual Operating Budget |Paid from Annual Operating |

| | | |

| |Capital Expenditures |Maintenance Expenses |

|Categories: | | |

| | | | | |

| | |“Major” |“Routine” |Paid from O & M |

| | |usually from |usually from Annual Op | |

| | |Replacement Reserve |Budget | |

|Plumbing | | | | |

|Water & Sewer Pipes |Replacement or major |X | |Fixing leaks |

| |overhaul of water & sewer| | | |

| |lines | | | |

| | | | | |

|Plumbing |Replacement |X |X |Repairs; hardware replacement |

|Bath Sinks, Kitchen Sinks, Faucets, | |(>1unit) |(1 unit) | |

|Toilets | | | | |

| | | | | |

|Electrical – Wiring & Electric Panels |Major electrical work or |X | |Repairs |

| |rewiring | | | |

| | | | |Repairs; hardware replacement; light bulbs, |

|Electrical - Fixtures |Replacement of fixtures |X |X |switch plates, etc. |

| | |(>1unit) |(1 unit) | |

| | | | | |

|Structures - |Major replacement |X | |Repairing holes |

|Walls | | | | |

| | | | | |

|Structures - |Major replacement, |X | |Minor roof repair |

|Roofing |including downspouts & | | | |

| |eaves | | | |

| | | | | |

|Structures – |Extensive replacement |X | |Patching; panel replacement |

|Siding | | | | |

| | | | | |

|Paving – |Major repaving, |X | |Minor paving & crack sealing |

|Sidewalks, parking lots, & driveways |resurfacing, seal coating| | | |

| |Paid either from Reserves or from Annual Operating Budget |Paid from Annual Operating |

| | | |

| |Capital Expenditures |Maintenance Expenses |

|Categories: | | |

| | | | | |

| | |“Major” |“Routine” |Paid from O & M |

| | |usually from Replacement |usually from Annual | |

| | |Reserve |Op Budget | |

|Landscape & Grounds: | | | | |

| Landscaping |Extensive landscape work| | |Seed, fertilizer, individual shrubs & trees |

| | |X |X | |

| Irrigation System |Replacement of | | |Repairing leaks & broken sprinklers |

| |Irrigation system |X | | |

| Lawn Equipment |Lawn mower | |X |Hand tools |

| Fencing |Replacement |X | |Patching, repair, & board replacement |

| Recreational Area |Purchase of new benches | | | |

| |or play-ground equipment|X |X |Minor repairs, hardware |

| |to replace old | | | |

| |benches/equip. | | | |

| Signs |Replacement | |X |Minor repairs, repainting, lighting |

|Accessibility Features |Extensive accessibility | | | |

| |work, ramps, railings |X |X |Minor modifications & hardware |

|Non-residential Areas: | | | | |

|Office |Computer & business | | | |

| |software (incl Industry | | |Small office equipment, furniture |

| |Interface), copier, fax | |X | |

| |machine | | | |

|Common Area | |X |X |Furniture |

|Other | | | |Fire extinguishers, smoke detectors |

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