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r :. I ! I I . I. ~'" "".M"~~ "....:-M..~-;-T""--...._-_... ...... ...-.....- ..... . . NOTE .:l;j SUMM.ARY OF SIGNIF'CANT'AC~OUNTING POLICIES (CONTINUED) . J.. Capital Assets All. capital assets are valued at historical cost or estimated historical cost if actual historical cost is not a\'ailable. Contributed capital assets are valu.ed at their estimated fair value on the date contributed. The City's. policy is -to capitalize all.~assets with costs. exceeding .certain minimum .thresholds, $5,000 for . machinery and equipment, $100,000 :for buildi~gs" improvements, and .in.frastructure~ and with useful.: : lives exceeding two years. . . . . . . . . . . . . . With the implem.entation. of GASB Statement No. 34, the; Cit)~ has recorded :a11" its public domain. (infrastructure): capital assets placed. in service after June 30,.. t980,which include t.oads, bI;idges, curbs: . and gutters, streets and sidewalks, drainage systems, and lighting systems ~sing the basIc approach: . . .The.purpose of depreciation i~ to spread the .cost of capital assets equitably. among all users over the life '. ::.of these assets. The amount charged to . depreciation expense. each'year represents that year's pro rata . share of the .cost of capital. assets. GASB; Statement. No. 34 requires that all .capitat assets with limited" . usefullives.;be depreciated over.their estimated useful: lives. Depreci~tion is provided us~ng the straight . line metho(,t which means the cost of the asset is. divided by :its. expected useful life in years arid ft1e result is:charged to expense each year until the asset is fully depreciated. .The City has assigned the useflillives. bsted as fonO\~s to capital assets.~ ,~ . .,; . J:iuildings .., Improvements . Equipment . Streets Parks ..Bridges Traffic Signals Storm Drains 20-50 . Years 33~O. Years:. 2~15 Years.. , 20. Years. :25 Years.: : : 30 -y cars. 20 . Years .,. 40 .Vears. , , . L: K.. .. Use of.EstiJnates: ; . i ., ''OJ' .. . . . . . .. . . . . .. . . . . The . prepar~tion: of ~he.; basic: :fi~ancial statements in .c~nformity .with generally accepted accounting principles. requires :manag~ent . to make. estimates: and assumptions.. These estimates and assumptions .' affect th~ . rePorted ~mounis'of assets and liabilities and the disclosu.re:ofcontingent assets and liabilities. . "In addition. .estimates aff~t the reported: amount; of expenses.. Actual results, could differ from these : .estimates.:and ,assumptions: . . .. . . . . . . . . . . . . . . L. .; lmplem.entation of New GASB .Pro.nouncements i: . I: : i.' i'. I . . . . . . . ... . . .: :.In 2008 the;, City adbpted new. accounting. standards in c;rder to conform to the following Governmental. . : Accounting Standards Board Statements: . .:.. . . GASH Statement. No.. 45. Accounting :,and. Financial Repofting. by Employers for . Postemplo.vmellt Benefits (OPEB) other than Pensions-.the staternent,establishes standards for the measurement,: recognition! arid:display of OPEH.cost$. and related liabilities :(assets), note.disclosures~ and, if .applicable~ required supplementary infonnation in the "fmancial reports of state and local goverriment employers. . . GASB Statement No. 48, Sales and Pledges of Receivables and Future -Revenues and lntra,-Entity Transfers' of Assets. and: Future Revenues '.- the statement establishes accounting and financial reporting standards for ~sac~ons in. which a government receives. or is entitled to, resources in. exc~nge for future. cash flows generated by collecting specific receivables or spe~ific future revenues. ::. 35.:. ."= . . . . : ; .,: .".". ", - ',' :..... .",