Agenda Packets - 2024/05/13 - Laserfiche WebLink

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NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The capital assets are depreciated using the straight-line method over the following estimated useful lives: Buildings 30-50 years Infrastructure — distribution and collection systems 30-50 years Infrastructure — streets 20-40 years Equipment 3-20 years M. Compensated Absences It is the City's policy to permit employees to accumulate earned, but unused, vacation and sick pay benefits. At termination of employment, employees receive all accrued vacation benefits and employees with sufficient years of service receive a percentage of their unpaid accumulated sick leave. Union employees and nonunion employees with two or more years qualify. Compensated absence pay is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. N. Long -Term Obligations In the government -wide and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund -type Statement of Net Position. Bond premiums and discounts, when material, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund -types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. O. Deferred Outflows/Inflows of Resources In addition to assets and liabilities, statements of financial position or balance sheets may report separate financial statement elements called deferred outflows or inflows of resources. These separate financial statement elements represent a consumption or acquisition of net assets that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) or an inflow of financial resources (revenue) until then. Deferred outflows and inflows of resources related to pensions and other post -employment benefits (OPEB) in the government -wide and proprietary fund Statement of Net Position. These deferred outflows and inflows result from differences between expected and actual experience, changes in proportion, changes of assumptions, differences between projected and actual investment earnings, and contributions to the plan subsequent to the measurement date and before the end of the reporting period. These amounts are deferred and amortized as required under pension and OPEB standards. The City reports deferred inflows of resources related to leases receivable in the government -wide Statement of Net Position and governmental funds Balance Sheet, which requires lessors to recognize deferred inflows of resources to correspond to lease receivables. These amounts are deferred and amortized in a systematic and rationale manner over the term of the lease. 512