b"City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2019 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.All capital assets are depreciated except for land and construction in progress.Improvements are depreciated over the remaining useful lives of the related capital assets.Useful lives for infrastructure were estimated basedontheCityshistoricalrecordsofnecessaryimprovementsandreplacement.Depreciationis computed using the straight-line method over the following useful lives:Governmental Business-TypeActivities ActivitiesDescription Estimated Lives Estimated LivesBuildings 50 years 50 yearsImprovements other than Buildings 20 years 20-50 yearsEquipment and Machinery 20 years 10-15 yearsFurniture and Fixtures 20 years 20 yearsVehicles 6 years 6 yearsInfrastructure 30-65 years 30-65 years The Citys infrastructure consists of bridges, culverts, curbs, sidewalks, storm sewers, streets, and water and sewer lines and includes infrastructure acquired prior to December 31, 1980.Interfund BalancesOn fund financial statements, outstanding interfund loans and unpaid amounts for interfund services are reported as interfund receivables/payables.Interfund balance amounts are eliminated in the governmental and business-type activities columns of the statement of net position, except for any net residual amounts due between governmental and business-type activities, which are presented as internal balances.Deferred inflows of resources and deferred outflows of resources from the change in internal proportionate share related to pension and OPEB items are eliminated in the governmental and business-type activities columns of the statement of net position, except for any net residual amounts between governmental and business-typeactivities.Theseresidualamountsareeliminatedinthetotalcolumnoftheentitywide statement of net position.Compensated AbsencesVacation benefits are accrued as a liability as the benefits are earned if the employees' rights to receive compensationareattributabletoservicesalreadyrenderedanditisprobablethattheemployerwill compensate the employees for the benefits through paid time off or some other means. The City records a liability for all accumulated unused vacation time when earned for all employees with more than one year of service.Since the Citys policy limits the accrual of vacation time to the amount accrued in one year, the outstanding liability is recorded as vacation benefits payable on the statement of net position rather than as a long-term liability. - 37 37 -"