13-60 Lower S. Platte WCD - Grant Request

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• • • • Note A - Summary of significant accounting policies (Continued) A.7 - Property Taxes Ad valorem (according to value) property tax revenue is recognized in compliance with National Council on Governmental Accounting (NCGA) Interpretation 3 "Revenue Recognition — Property Taxes." This interpretation states that property tax revenue is recorded when it becomes available. Available means then due, or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. Such time thereafter shall not exceed 60 days. The District does not accrue revenue from property taxes or other tax sources. These taxes are recorded as revenue at the time of receipt since they are not susceptible to accrual because they are measurable but not available. Property taxes which are measurable but not available, and hence not susceptible to accrual, are recorded as an asset on the balance sheet of the fund entitled to such taxes under the heading "Property Taxes Receivable" with an equal amount of "Deferred Revenue" recorded as a liability. This method of reporting the ensuing year's property taxes is considered preferable in order to disclose property taxes to be received from the adoption of the ensuing year's budget. The District's property taxes, levied by December 15th on assessed valuation as of the preceding January 1, are due and payable in the subsequent calendar year. Assessed values are established by the county assessor. Property taxes attach as an enforceable lien on property as of January of the year in which payable. The taxes are payable under tow methods: 1) in full on or before April 30, 2) one -half on or before February 28 and the remaining one -half on or before June 15, A.8 - Capital assets • General capital assets are those assets not specifically related to activities reported in the proprietary fun ds. These assets generally result from expenditures in the governmental funds. These assets are reported in the governmental activities column of the government -wide statement of net assets, but are not reported in the fund financial statements. All capital assets with a unit cost greater than $1,000 are capitalized at cost (or estimated historical cost, if actual cost is not available) and updated for additions and retirements during the year. Donated capital • assets are recorded at their fair value on the date received. Infrastructure assets, consisting of certain improvements other than buildings (such as parking facilities, sidewalks, landscaping and lighting systems) are capitalized along with other capital assets. Improvements to assets are capitalized: the cost of normal maintenance and repairs that do not add to the value of the asset of materially extend the life of the asset are not. • All reported capital assets are depreciated with the exception of land costs. Improvements are depreciated over the remaining useful lives of the related capital assets. Depreciation is computed using the straight -line method over the following useful lives: Description Governmental Activities • Buildings and improvements 20 -50 years Furniture and equipment 5 -25 years Licensed vehicles 7 -10 years • -16- •