b'City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2018 Bond Premiums On the government-wide financial statements, bond premiums are deferred and amortized for the term of the bonds using the straight-line method. Bond premiums are presented as an increase of the face amount of the bonds payable. On governmental fund statements, bond premiums are receipted in the year the bonds are issued.Under Ohio law, premiums on the original issuance of debt are to be deposited to the bond retirement fund to be used for debt retirement and are precluded from being applied to the project fund.Ohio law does allow premiums on refunding debt to be used as part of the payment to the bond escrow agent.Contributions of CapitalContributions of capital in the governmental activities and proprietary fund statements arise from outside contributionsofcapitalassetsorfromgrantsoroutsidecontributionsofresourcesrestrictedtocapital acquisition and construction.Interfund ActivityTransfersbetweengovernmentalandbusiness-typeactivitiesonthegovernment-widestatementsare reported in the same manner as general revenues.Transfers between governmental activities are eliminated on the government-wide financial statements.Internal allocations of overhead expenses from one function to another or within the same function are eliminated on the statement of activities.Interfund payments for services provided and used are not eliminated.Exchangetransactionsbetweenfundsarereportedasrevenuesinthesellerfundsandas expenditures/expenses in the purchaser funds.Flows of cash or goods from one fund to another without a requirementforrepaymentarereportedasinterfundtransfers.Interfundtransfersarereportedasother financing sources/uses in governmental funds and after nonoperating revenues/expenses in proprietary funds.Repayments from funds responsible for particular expenditures/expenses to the funds that initially paid for them are not presented on the financial statements.Deferred Charge on RefundingOn the government-wide financial statements, the difference between the reacquisition price (funds required to refund the old debt) and the net carrying amount of the old debt, the gain/loss on the refunding, is being amortized as a component of interest expense. This deferred amount is amortized over the life of the old or new debt, whichever is shorter, using the effective interest method and is presented as deferred outflows of resources on the statement of net position.EstimatesThepreparationofthefinancialstatementsinconformitywithgenerallyacceptedaccountingprinciples requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.Actual results may differ from those estimates.Regulated AssetAs determined by the Citys Utility Board, electric rates are designed to recover the cost of providing electric serviceanditisreasonabletoassumethatthoseratescanbechargedtoandcollectedfromelectric customers.In 2013, the City incurred a share of the impaired costs related to the AMP Generating Station project (see Note 12).This specific amount will be included in future electric rates through an automatic rate adjustment clause in order for the City to recover these impaired costs from electric customers and therefore has been recorded as a regulated asset on the Citys financial statements. - 40 41 -'