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Redevelopment Agency of the City of Redwood City <br /> Notes to Basic Financial Statements, Continued <br /> For the year ended June 30,2007 <br /> 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued <br /> E. Capital Assets, Continued <br /> Buildings 20-50 Years <br /> Improvements 33-60 Years <br /> Equipment 2-15 Years <br /> Streets 20 Years <br /> Parks 25 Years <br /> Bridges 30 Years <br /> Traffic Signals 20 Years <br /> Storm Drains 40 Years <br /> In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement No. 34 which requires <br /> the inclusion of infrastructure capital assets in local governments' basic financial statements. In accordance <br /> with GASB Statement No. 34, the Agency has included all infrastructures into the current Basic Financial <br /> Statements. <br /> The Agency def ines inf rastructure as the basic physical assets that allow the Agency to function. The assets <br /> include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems. Each <br /> major infrastructure system can be divided into subsystems. These subsystems were not delineated in the <br /> basic financial statements. The appropriate operating department maintains information regarding <br /> subsystems. <br /> For all infrastructure systems, the Agency elected to use the Basic Approach as defined by GASB Statement <br /> No. 34 for infrastructure reporting. The accumulated depreciation, defined as the total depreciation from the <br /> date of construction/acquisition to the current date on a straight-line, unrecovered cost method was computed <br /> using industry accepted lif e expectancies f or each inf rastructure subsystem. The book value was then <br /> computed by deducting the accumulated depreciation from the original cost. <br /> F. Long-Term Debt <br /> In the government-wide financial statements, long-term debt and other long-term obligations are reported as <br /> liabilities in the applicable governmental activities. Bond premiums and discounts and issuance costs,if material, <br /> are deferred and amortized over the life of the bonds using the straight line method. Bonds payable are reported <br /> net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and <br /> amortized over the term of the related debt. <br /> In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as <br /> bond issuance costs, during the current period. The face amount of debt issued is reported as other financial <br /> sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt <br /> issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt <br /> proceeds received, are reported as debt service expenditures. <br /> 25 <br />