2022 08-08 CC PACKET - Laserfiche WebLink

Home

NOTE I — SUMMARY*OFBIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Capital Assets. Capital assets, which include property,. plant, equipment, and infrastructure assets (e.g., roads, sidewalks, street lights, and similar items) are reported in the applicable. governmental or business -type activities columns in the government -wide financial statements. Such assets are capitalized at historical cost or estimated historical cost for assets where actual historical cost Jsnot: available... The City defines capital assets as :those with an initial, individual cost of $500.or more with an estimated useful life in excess Of five years.. Donated. assets are recorded as capital assets at their acquisition value. at the date of donation. The cost of normal maintenance and .repairs that do -not add to the value of the asset or materially extend asset lives are: not. capitalized.. Major outlays for capital assets and iinprovedient *are capitalized as projects are constructed. The government reports infrastructure assets on. a network and subsystem:-bmis. 1.11 the case of the initial capitalization of general infrastructure: assets (i.e., those reported .by governmental activities), the City chose to. include all such items regardless of their acquisition date or amount. Capital assets are recordtrd frr*the government -wide and..proprietary:fund financial statements,.but are not reported in the-gpvernmorital fund financial statements. Depreciation on enhaustible assets is recorded as :an allocated expense in the statement:of activities with accumulated depteciation reflected in the Statement of Net Position. Since surplus assets are sold .for an immaterial amount when declared as no longer needed for city purposes, no salvage value is taken into consideration 1or'depreciatirin. purposes. Capital assets are depreciated. using the straight-line method over the following estimated useful lives: Estimated Assets Useful Life' Buildings 40 years Office equipment 5-to 10 years Infrastructure 20 to 50 years Capital :assets: not being depreciated include land and construction in pt°ogress. K. Long -Term Liabilities In the government -wide and proprietary fund financial statements,...long-term debt and. otl�er long-term obligations are reported as liabilities. If they are material, bond premiums artd-diswunts 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 tile: governiental fund financial statements, long-term debt and other Iong-terin obligations are not reported as liabilities until due and payable. The face.ainount of debt issued is reported. as other financing sources. Premiums or discounts on debt issuances are,. reported as other financing: sources or uses, respectively. Issuance costs, whether _.or:notwvithheld from the. actual delit.pnxeeds received, are reported as expenditures: -22-