Sarasota County, Florida Notes to Financial Statements September 30, 2024 improvements which significantly increase values, change capacities, or extend useful lives are capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Amounts expended for maintenance and repairs are charged to expenditures/expenses as incurred. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations. Property, plant and equipment of the County are depreciated using the straight-line method over the following estimated useful lives: Information regarding assets is included in Note 6 to the financial statements. J. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of net position includes a separate section for deferred outflows of resources. This represents a consumption of net assets that applies to a future periods and so will not be recognized as an outflow of resources (expense/ expenditure) until then. For the County, four types of items qualify for reporting in this category. The first type is a deferred loss on debt refunding reported in the proprietary and the governmentwide statements of net position. A deferred loss on debt refunding occurs when the debt reacquisition price is greater than the carrying value of refunded debt. The deferred loss is amortized over the shorter of the life of the refunded or refunding debt. The second type is a deferred charge that represents changes in actuarial assumptions, the net difference between projected and actual earnings on pension plan investments, changes in the proportion and differences between the County’s contributions and proportionate share of contributions, and the County’s contributions subsequent to the measurement date, relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program. These amounts will be recognized as increases in pension expense in future years. The third type is a deferred charge that represents certain changes in the collective net other postemployment benefits (OPEB) liability or collective total OPEB liability. These amounts will be recognized as an increase in OPEB expense in future years. The forth type represents the remaining available balance of the County’s state infrastructure bank loan to be drawn on to fund future capital improvement costs for the County’s portion of the widening and reconstruction of River Road. In addition to liabilities, the statement of net position includes a separate section for deferred inflows of resources. This represents an acquisition of net assets that applies to a future periods and so will not be recognized as an inflow of resources (revenue) until that time. For the County, five types of items qualify for reporting in this category. The first type is taxes received in advance that are reported in the governmental funds balance sheet and the government-wide statement of net position and result from estimated property taxes and non-ad valorem assessments that are collected in quarterly installments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second type represents the difference between expected and actual economic experience, the net difference between projected and actual earnings on Florida Retirement System Pension Investments, and changes in the proportion and differences between the County’s contributions and proportionate share of contributions relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program. These amounts will be recognized as reductions in pension expense in future years. The third type is a deferred charge that represents certain changes in the Assets Years Capitalization Threshold Buildings & building improvements 10-40 years Capitalize all Infrastructure: General Gov't/Enterprise 10-50 years $1,000,000/$50,000 Equipment: All other 3-10 years Per FL Statute 274.02 Intangible Assets: Patents, copyrights, trademarks 10-50 years $150,000 Water, and timber use rights 10-50 years $150,000 Software 3-10 years $150,000 Right-to-use lease assets 3-10 years $5,000 SBITA 3-10 years $150,000 87
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