Adopted Budget Book FY 23-24 Final with TOC links - Flipbook - Page 129
Budget-In-Brief → DebT
Capital Asset Policy
Purchased and constructed capital assets are reported at cost or estimated historical cost. Capital
assets include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items. They are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Property, plant, and equipment with
initial, individual costs equal to or exceeding $5,000 and estimated useful lives of over one year are
recorded as capital assets. Roads, bridges, and sidewalks are capitalized when their initial costs
equal or exceed $25,000 and possess estimated useful lives of more than one year. Purchased or
constructed, capital assets are recorded at historical or estimated historical costs. Donated capital
assets are recorded at the acquisition value at the date of donation. Significant outlays for capital
assets and improvements are capitalized as projects are constructed. Interest incurred during
the construction phase of capital assets of major business-type activities is included as part of the
capitalized value of the assets constructed. 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:
Assets:
Land Improvements
Buildings
Infrastructure
Equipment
Useful Lives:
15-40 years
10-40 years
15-40 years
3-40 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.
The City will comply with the standards established by the Governmental Accounting Standards
Board Statement (GASB) 34 and all subsequent pronouncements set forth by the GASB regarding
Capital Asset Accounting.
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City of Eustis, Florida
Adopted Budget
127
