AgdaPkt 2012-01-09 - Laserfiche WebLink

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Re� 6.1. B. - 181 Jency of the City of Redwood City Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Capital Assets, Coritinued Depreciation is recorded on a straight-line basis over estiinated useful lives of the assets as follows: Buildings 20-50 Years Inlprovements 33-60 Years Equipnlent 2-15 Years Streets 20 Years Parks 25 Years Bridges 30 Years Traffic Signals 20 Years Stornl Drains 40 Years In June 1999, tlle Governnlental Accounting Standards Board (GASB) issued Statenlent No. 34 which requires t11e inclusion of infrastructure capital assets in local governnlents' basic financial statements. In accordance with GASB Statement No. 34, the Agency has included all infrastructure uzto the current Basic Financial Statements. The Agency defines ulfrastructure as t11e basic physical assets that allow the Agency to fwzction. The assets include roads, bridges, curbs and gutters, streets aild sidewalks, drainage systenls, and lighting systenls. Eac11 nlajor infrastructure system can be divided ulto subsystems. These subsystems were not delineated in fl1e basic financial statements. Tl1e appropriate operating department maintains infornlation regardulg subsystenls. For all infrastructure systems, the Agency elected to use t11e Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. The accumulated depreciation, defined as t11e total depreciation from the date of construction/acquisition to the current date on a straight-luze, unrecovered cost nlethod was conlputed using uzdustry accepted life expectancies for each infrastructure subsystem. The book value was then conlputed by deductulg the accunlulated depreciation from the original cost. F. Long-Terrn Debt In tlle governnlent-wide financial statements, long-ternl debt and otller long-term obligations are reported as liabilities in flze applicable governnlental activities. Bond prenuunls and discounts and issuance costs, if nlaterial, are deferred and amortized over the life of $Ze bonds using the straight line n1et11od. Bonds payable are reported net of the applicable bond prenuum or discount. Bond issuance costs are reported as deferred charges and anlortized over the ternl of t11e related debt. In tlle fwld financial statenlents, governnlental fund types recognize bond premiunls and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as otller financial sources. Prenliunls received on debt issuance are reported as other financulg sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld fronl the actual debt proceeds received, are reported as debt service expenditures. ?5