AgdaPkt 2009-12-14 - Laserfiche WebLink

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6.1 B - Attachment No. 2 Redevelopment Agency of the City of Redwood City Notes to Basic Financial Statements,Continued For the year ended June 30,2009 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,Continued E. Capital Assets, Continued Depreciation is recorded on a straight-line basis over estimated usefullives of the assets as follows: Buildings 20-50 Years Improvements 33-60 Years Equipment 2-15 Years Streets 20 Years Parks 25 Years Bridges 30 Years Traffic Signals 20 Years Storm Drains 40 Years In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement No. 34 which requires the inclusion of infrastructure capital assets in local governments' basic financial statements. In accordance with GASB Statement No. 34, the Agency has included all infrastructures into the current Basic Financial Statements. The Agency defines infrastructure as the basic physical assets that allow the Agency to function. The assets include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems. Each major infrastructure system can be divided into subsystems. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding subsystems. For all infrastructure systems, the Agency elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date on a straight-line, unrecovered cost method was computed using industry accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost. F. Long-Term Debt In the government-wide financial statements,long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts and issuance costs,if material, are deferred and amortized over the life of the bonds using the straight line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received,are reported as debt service expenditures. 25