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NOTE 1--,RUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (C01OINUED) ,I: Capital.Assets Capital assets, which include property, plant,. equipment, and infrastructure asset§ {�.g:, roads, sidewalks, street lights,:and similar items) :are reported in the applicable governmental or business -type activities columns in .the. government -wide financial statement& Sueh assets are capitalized at .historical cost -or estimated historical cost for assets where actual historical. cost is not.:available. Donated assets :are recorded. as capital. assets at their acquisition value at the date of donation. The cost of normat maintenance and repairs -that do not add to the value of the asset or materially exteridasset lives are not capitalized. Major outlays for capital assets and improverriants are capitalized as projects are constructed. The govenuneni.reports infrastructure assets on a network and subsystem basis. In the case of the -initial capitalization of general infrastructure assets (i.e., those reported by .governmental activities), the City chosp to -include all such items regardless oft heir acquisition date; or amount. Capital assets.are recorded in the government -wide and proprietary fond financial statements, but are not reported in the governmental fund financial Matemms. Depreciation on exhaustible assets is recorded as an -allocated. expense in the statement of activities with arcutnolated depreciation reflected in.:the Statemcnt.af Net Position. Since surplus sssets'sre sold for an. immaterial amount when declared*.as no longer needed for City purposes, no salvage value is taken into consideration for depreciation purposes. Capital assets are depreciated using. the. straight-line method over thetollowing estimated -useful lives: - Assets Buildings. .Office equipment ;Infrastructure Estimated Useful.Life 4o:years S :to Id years 20 to 50 years,' Capital assets not.being depreciated inqlude. land and-ronstruction in progress: K. LongTerm Liabilities In the government-widee and proprietary fund fanancial stateine*, long-term delft and other long-term. obligations are.reported as.liabilities. If they are -material, bond, premiums and discounts are deferred and amortized over the life of -the bonds: using the: straight-line method. Bond issuance, costs are expensed in the period incurred. In 'the goVernmerital fund financial statements, long-term debt and other long-term obligations -are hbt reported as liabilities until due and payable. The face amount of debt issued is -reported as other financing sources. Premiums or discounts. on. debt. issuances..are reported as .other financipg sources or uses, respectively. Issuapce-costs; whether. or.potwithheld from: the actual debt proceeds received, are. reported as`:expenditures. -2.1-