Consecuencias y síntomas del Burnout

6. Capital Assets - The City's property, plant, equipment, intangible assets and infrastructure with useful lives of more than one year are stated at historical cost and comprehensively reported in the government-wide financial statements. The City maintains infrastructure asset records consistent with all other capital assets. Proprietary and component unit capital assets are also reported in their respective fund financial statements. Donated assets are stated at fair value on the date donated. The City generally capitalizes assets with cost of $1,000 or more as purchase and construction outlays occur. The costs of normal maintenance and repairs that do not add to the asset value or materially extend useful lives are not capitalized. Capital assets are depreciated using the straight-line method. When capital assets are disposed, the cost and applicable accumulated depreciation are removed from the respective accounts, and the resulting gain or loss is recorded in operations. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of assets constructed net of any interest income earned.

Estimated useful lives, in years, for depreciable assets are as follows:

Assets _Years

Buildings 5 - 50

Improvements, other than buildings 2 - 50

Infrastructure 20 - 50

Mobile equipment 3 - 30

Furniture, machinery, and equipment 3 - 30

Intangible 5 - 10

7. Compensated Absences - It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits, which will be paid to employees upon separation from City service if they meet certain criteria. These benefits plus their related taxes are classified as compensated absences. The accumulated compensated absences are accrued when incurred in the government-wide financial statements and proprietary funds for both the current and long-term portions. The General Fund, Road and Bridge Fund, and Building Department Fund, typically are the governmental-type funds that liquidate the compensated absences liability.

Compensated absences are reported in the governmental funds only if they have matured and are due and payable as of September 30, 2013.

CITY OF PORT ST. LUCIE, FLORIDA

NOTES TO FINANCIAL STATEMENTS September 30, 2013

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D. ASSETS, LIABILITIES, DEFERRED INFLOWS/OUTFLOWS AND NET POSITION OR EQUITY, REVENUES, AND EXPENDITURES/EXPENSES (CONTINUED)

8. Long-Term Debt, Prepaid Insurance, and Bond Discounts/Premiums - In the government- wide financial statements and the proprietary fund types in the fund financial statements, outstanding debt is reported as liabilities. Bond discounts or premiums are amortized over the terms of the respective bonds using the effective interest method. Prepaid insurance is amortized over the terms of the respective bonds using the straight line method.

The governmental fund financial statements recognize the proceeds of debt and premiums as other financing sources and discounts as other financing uses of the current period. Issuance costs are reported as expenditures.

9. Deferred Inflows/Outflows - In the government-wide financial statements and the proprietary fund types in the fund financial statements, the difference between the reacquisition price and the net carrying value of refunded debt is amortized over the terms of the respective bonds using the effective interest method and reported as deferred outflows.

In the governmental-wide financial statements imposed nonexchange transactions that will be collected in future periods are reported as revenues in the statement of activities. The governmental fund financial statements report imposed nonexchange transactions that will be collected in future periods as deferred inflows.

10. Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from management's estimates.

11. Property Taxes - The City's property tax is levied annually on October 1 on the real and personal property located in the City on January 1 (the lien date) of the fiscal year. The assessed value on which the 2012 levy was based was approximately $6.32 billion. The assessed values are established by the St. Lucie County Property Appraiser. Tax collections by the St. Lucie County Tax Collector begin normally in November of each year with a due date of March 31 of the following year. Discounts are allowed for early payment of 4% in November, 3% in December, 2% in January, and 1% in February. Unpaid property taxes become delinquent as of April 1. Current tax collections for the year ended September 30, 2013 were approximately 95.4% of the total tax levied. The City is permitted by state law to levy taxes up to 10 mills of assessed valuation. The tax rate for the year ended September 30, 2013 was 4.4096 mills for general operating purposes plus a voter-approved 1.2193 mill levy for debt service on general-obligation bonds.

CITY OF PORT ST. LUCIE, FLORIDA

NOTES TO FINANCIAL STATEMENTS September 30, 2013

25

D. ASSETS, LIABILITIES, DEFERRED INFLOWS/OUTFLOWS AND NET POSITION OR EQUITY, REVENUES, AND EXPENDITURES/EXPENSES (CONTINUED)

12. Capital Asset Reclassification - In April 2010, the City issued Lease Revenue Bonds, Series 2010A and 2010B. Proceeds from the bond issue were used to construct a digital production studio (Tradition Studio) for lease to Digital Domain Media Group DDMG). Annual lease payments from DDMG were pledged for the payment of principal and interest on the Lease Revenue Bonds. On September 11, 2012, DDMG filed a Chapter 11 Bankruptcy case. The bankruptcy court granted DDMG's request to terminate the lease and the City took possession of the Studio in 2013. After unsuccessfully attempting to identify a potential new tenant for the Studio the City determined it was in its best interests to sell the Studio. Accordingly, the City has reclassified Tradition Studio as an asset held for resale. In the Statement of Activities the difference between the net book value of Tradition Studio and the estimated net realizable value ($9,920,412) has been reported as a "Special Item - asset writedown".

NOTE II – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY