ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 70
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 1 - Description of Funds and Summary of Significant Accounting Policies (Continued)
Assets, Liabilities, and Fund Equity (Continued)
Capital asset purchases are recorded as capital outlay expenditures in the fund level
governmental funds in the year of acquisition.
Property, plant, and equipment are depreciated using the straight-line method over
the following estimated useful lives:
Useful Lives
Buildings
10-40 Years
Land Improvements
15-40 Years
Equipment
3-40 Years
Infrastructure
15-40 Years
Expenditures for repairs and maintenance are expensed when incurred. Additions,
major renewals, and replacements that increase the useful lives of the assets are
capitalized.
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Amortization of Bond Discounts and Premiums
In the Water and Sewer Utility System Fund, bond discounts and premiums are
amortized over the life of the bonds using the straight-line method. In the governmental
funds, these costs are recorded as other sources or used when bonds are issued.
Issuance costs are expensed at the time of debt issuance.
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Compensated Absences
The City’s policy permits employees to accumulate earned but unused vacation and
sick pay benefits. Upon termination in good standing, the employee can receive a
cash benefit for the number of days accrued at the employee’s current wage rate. The
City records compensated absences in governmental funds only if they have matured,
as expenditures accrued during the year would typically be liquidated with
expendable, available financial resources. The City accrues compensated absences
in the period earned in the government-wide and enterprise fund financial statements.
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On-Behalf Payments for Fringe Benefits
The City receives on-behalf payments from the State of Florida for the Police Officers’
and Firefighters’ Retirement Plan Contributions. On-behalf payments to the City total
$292,417 for the fiscal year ended September 30, 2021. These payments are currently
recorded as revenue in the Pension Trust Fund.
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Other Postemployment Benefits
The City’s policy allows retirees to participate in its employee health and life insurance
programs. The City accrues other post-employment benefits liability for the cost of
providing those benefits in the government-wide and enterprise fund financial
statements based on actuarial measurement annually.
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