ACFR FY 2023 Final - Flipbook - Page 78
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 1 - Description of Funds and Summary of Signiocant Accounting Policies (Continued)
Capital asset purchases are recorded as capital outlay expenditures at the fund level in the year of
acquisitionÿ
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 incurredÿ Additions, major renewals,
and replacements that increase the useful lives of the assets are capitalizedÿ
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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 methodÿ In the governmental funds, these costs are recorded
as other sources or used when bonds are issuedÿ Issuance costs are expensed at the time of debt
issuanceÿ
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Compensated Absences
The City9s policy permits employees to accumulate earned but unused vacation and sick pay beneots. Upon termination in good standing, the employee can receive a cash beneot for the number
of days accrued at the employee9s current wage rateÿ 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 onancial resources. The City accrued compensated
absences in the period earned in the government-wide and enterprise fund onancial statements.
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On-Behalf Payments for Fringe Beneots
The City receives on-behalf payments from the State of Florida for the Police Ofocers9 and Fireoghters9
Retirement Plan Contributions. On-behalf payments to the City total of $386,450 for the oscal year
ended September 30, 2023ÿ These payments are currently recorded as revenue in the pension Trust
Fundÿ
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Other Postemployment Beneots
The City9s policy allows retirees to participate in its employee health and life insurance programsÿ The
City accrues other post-employment beneots liability for the cost of providing those beneots in the
government-wide and enterprise fund onancial statements based on annual actuarial measurement.
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Net Pension Liability
In the government-wide and proprietary statements, net pension liability represents the present
value of projected beneot payments to be provided through the cost-sharing and single-employer
deoned beneot pension plans to currently active and inactive employees that is attributed to those
employees9 past periods of service (total pension liability), less the amount of the pension plan9s
oduciary net position. To measure the net pension liability, deferred outflows of resources and
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Annual Comprehensive Financial Report | September 30, 2023
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