ACFR FY 2022 FINAL BOOK - Flipbook - Page 74
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 1 - Description of Funds and Summary of Significant Accounting Policies (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:
buildings
Land Improvements
Equipment
Infrastructure
Useful Lives
10-40 Years
15-40 Years
3-40 Years
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�
●
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�
●
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 accrued compensated
absences in the period earned in the government-wide and enterprise fund financial statements�
●
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 of $314,004 for the fiscal year
ended September 30, 2022� These payments are currently recorded as revenue in the pension Trust
Fund�
●
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�
●
Net Pension Liability
In the government-wide and proprietary statements, net pension liability represents the present
value of projected benefit payments to be provided through the cost-sharing and single-employer
defined benefit pension plans to currently active and inactive employees that is attributed to those
employees’ past periods of service (total pension liability), less the amount of the pension plan’s
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Annual Comprehensive Financial Report | September 30, 2022