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I <br /> 1 Winter Park Water and Sanitation District <br /> I NOTES TO FINANCIAL STATEMENTS <br /> (continued) <br /> IDecember 31, 2010 and 2009 <br /> I on delinquent properties are held in November and December. The County Treasurer <br /> remits the taxes collected monthly to the District. <br /> I Property taxes, net of estimated uncollectible taxes, are recorded initially as deferred <br /> revenue in the year they are levied and measureable. The deferred property tax <br /> revenues are recorded as revenue in the year they are available or collected. <br /> ICapital assets <br /> I Capital assets include land, water rights, water and sewer plants and systems, <br /> equipment and vehicles. Capital assets are defined by the District as those assets <br /> with an initial, individual cost of $3,000 or greater. Such assets are recorded at <br /> historical cost or estimated historical cost if purchased or constructed. Donated capital <br /> I assets are recorded at estimated fair market value at the date of donation or at the <br /> developer's cost. <br /> I The costs of normal maintenance and repairs that do not add to the value of the asset <br /> or materially extend the life of the asset are not capitalized. Improvements are <br /> capitalized and depreciated over the remaining useful lives of the related fixed assets, <br /> I as applicable. Interest incurred during the construction phase of capital assets is not <br /> included as part of the capitalized value of the assets constructed. <br /> I Depreciation expense has been computed using the straight-line method over the <br /> following estimated economic useful lives: <br /> I Plant and improvements 5 to 50 years <br /> Water storage tanks 30 to 50 years <br /> Water distribution system 10 to 40 years <br /> I Vehicles 5 years <br /> Other equipment 5 to 10 years <br /> IWater rights <br /> The cost of water rights includes acquisition cost, legal and engineering costs related <br /> I to the development and augmentation of those rights. Water rights have a perpetual <br /> life, thus the cost is not amortized. All other costs, including costs incurred for the <br /> protection of those rights are expensed. <br /> ICompensated absences <br /> The District has a policy that allows employees to accumulate unused vacation <br /> I benefits and compensatory time off up to a certain maximum hours. Compensated <br /> absences are accrued when incurred in the financial statements. <br /> I13 <br />