Laserfiche WebLink
CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2021 <br /> <br /> <br /> <br /> <br />L. CAPITAL ASSETS <br /> <br /> Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, sidewalks, <br />street lights, and similar items) are reported in the applicable governmental or business-type activities <br />columns in the government-wide financial statements. Capital assets are defined by the City as assets <br />with an estimated useful life in excess of one year, which have an individual value equal to or greater <br />than the capitalization thresholds for each asset class as follows: <br /> <br />Land $10,000 <br />Buildings and building improvements $50,000 <br />Improvements other than buildings (land improvements) $25,000 <br />Machinery and equipment $10,000 <br />Infrastructure and other improvements $100,000 <br />Other assets $10,000 <br /> <br />Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. <br />Donated capital assets are recorded at acquisition value at the date of donation. All existing City <br />infrastructure has been capitalized regardless of date placed in service. <br /> <br />The costs of normal maintenance and repairs that do not add to the value of the asset or materially <br />extend assets lives are not capitalized. Major outlays for capital assets and improvements are <br />capitalized as projects are constructed. <br /> <br /> Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities <br />with accumulated depreciation reflected in the Statement of Net Position. Capital assets are depreciated <br />using the straight-line method over their estimated useful lives. Since surplus assets are sold for an <br />immaterial amount when declared as no longer needed for City purposes, no salvage value is taken into <br />consideration for depreciation purposes. Useful lives vary from 5 to 40 years for buildings, office <br />furniture and equipment, vehicles, machine shop and equipment and other assets, and 15 to 50 years for <br />infrastructure and other improvements. <br /> <br /> <br />M. COMPENSATED ABSENCES <br /> <br /> It is the City’s policy to permit employees to accumulate earned but unused vacation, PTO (Personal <br />Time Off), extended leave and sick pay benefits. All vacation pay and PTO and the portion of sick pay <br />allowable as severance is accrued in the government-wide and proprietary fund financial statements. <br />The current portion is calculated based on historical trends. <br /> <br /> <br />N. LONG-TERM OBLIGATIONS <br /> <br /> In the government-wide financial statements and proprietary fund types in the fund financial statements, <br />long-term debt and other long-term obligations are reported as liabilities in the applicable governmental <br />activities, business-type activities, or proprietary fund type Statement of Net Position. Bond premiums <br />and discounts are amortized over the life of the related debt. <br /> <br /> In the fund financial statements, governmental fund types recognize bond premiums and discounts <br />during the current period. The face amount of debt issued is reported as other financing sources. <br />Premiums received on debt issuances are reported as other financing sources while discounts on debt <br />issuances are reported as other financing uses. <br /> <br /> <br /> <br />51