b'City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2018 Investments with an original maturity of three months or less at the time of purchase and investments of the cash management pool are presented on the financial statements as cash equivalents.The City uses a fiscal agent to hold retainage on construction contracts.The balances in these accounts are presentedonthefinancialstatementsascashandcashequivalentswithfiscalagentsandrepresent deposits.Prepaid ItemsPayments made to vendors for services that will benefit periods beyond December 31, 2018, are recorded as prepaid items using the consumption method by recording a current asset for the prepaid amount at the time of purchase and reflecting the expenditure/expense in the year in which the services are consumed.InventoryInventoriesarepresentedatcostonafirst-in,first-outbasisandareexpended/expensedwhenused.Inventory consists of expendable supplies held for consumption.Restricted AssetsAssets are reported as restricted when limitations on their use change the nature or normal understanding of theavailabilityoftheasset.Suchconstraintsareeitherexternallyimposedbycreditors,contributors, grantors, or laws of other governments, or are imposed by law through constitutional provisions or enabling legislation.Restrictedassetsinthegeneralfundincludeunclaimedmonies.Restrictedassetsinthemastercapital capitalprojectsfundrepresentsmoneysetasideasretainagepayableonconstructionprojects.Electric customer deposits have also been restricted because the deposit remains the property of the customer.The restricted asset account is balanced by a customer deposits payable liability account.Capital AssetsGeneral capital assets are capital assets which are associated with and generally arise from governmental activities.They generally result from expenditures in the governmental funds.General capital assets are reported in the governmental activities column of the government-wide statement of net position but are not reported in the fund financial statements.Capital assets utilized by the proprietary funds are reported both in the business-type activities column of the government-wide statement of net position and in the respective funds.Allcapitalassetsarecapitalizedatcost(orestimatedhistoricalcost)andupdatedforadditionsand retirements during the year.The City was able to estimate the historical cost for the initial reporting of capitalassetsbybacktrending(i.e.,estimatingthecurrentreplacementcostoftheinfrastructuretobe capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year).Donated capital assets are recorded at their acquisition values as of the date received.The City maintains a capitalization threshold of five thousand dollars.Improvements are capitalized; the costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an assets life are not. - 36 37 -'