114 / 373
38f
5.
Intangible Assets
Intangible Assets of $88,250,033 as of June 30, 2016 are recorded in the Water Resources Enterprise Fund and represent
rights to future raw water allocations from the Randleman Dam and reservoir project, in accordance with a joint venture
agreement established in September 1987 with five other governmental entities to form a regional water supply. The
intangible asset is based on City contributions to the Piedmont Triad Regional Water Authority for construction of the dam,
reservoir, water treatment plant and surrounding infrastructure improvements as well as $882,023 of contributions recorded
in Fiscal Year 2016, toward the City’s administrative and operating allocation. In Fiscal Year 2011, the City began
amortizing the water rights over a period of 50 years with current year related amortization expense totaling $1,765,001.
Accumulated amortization totals $10,330,972.
Other Intangible Assets are recorded as follows:
Software &
Accumulated
Easements
Licenses
Amortization
Governmental Activities:
General Government Assets $
3,488,024
$
3,366,703
$
Capital Leasing Fund
830,969
803,769
Total
$
4,318,993
$
4,170,472
$
Business-Type Activities:
Water Resources Fund
20,806,613
$
4,913,872
$
4,708,031
$
Stormwater Fund
1,445,864
345,548
320,888
Other Enterprise Fund
49,218
49,218
Total
22,252,477
$
5,308,638
$
5,078,137
$
Software and Licenses are amortized over an estimated useful life of 3 to 7 years. Easements represent non-depreciable
assets.
6.
Capital Assets
Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, sidewalks and similar
items) and intangible assets, are reported in the applicable governmental or business-type activities columns in the
government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost
of more than $5,000. One exception is intangible assets, for internally generated software, which is capitalized if greater than
$100,000. All purchased capital assets of the City and GTA are valued at historical cost or estimated historical cost if actual
historical cost is not available. Donated capital assets received prior to June 15, 2015 are recorded at their estimated fair
value at the date of donation. Donated capital assets received after June 15, 2015 are recorded at acquisition value. All other
purchased or constructed capital assets are reported at cost or estimated historical cost. General infrastructure assets,
including annexed streets that were acquired, or received substantial improvements subsequent to July 1, 1980 are reported at
estimated historical cost using deflated replacement values. The cost of normal maintenance and repairs that do not add
value to the asset or materially extend assets lives are not capitalized.
General capital assets and the related accumulated depreciation are reported for the City and GTA using the straight-line
method over the following estimated useful lives: Buildings, 40 years; Improvements, 20 years; Equipment, 5-20 years and
Infrastructure as follows: Streets, 50 years; Sidewalks, 40 years; Bridges, 50 years; Water/Sewer, 40 years and Stormwater
Improvements, 30-75 years. Depreciation of all exhaustible capital assets used by Proprietary Funds is charged as an
expense against their operations.
Property and equipment of the Greensboro ABC Board are stated at cost and are depreciated over their useful lives on a
straight-line basis as follows: Buildings, 50 years; Equipment, 3-5 years. Leasehold improvements of the Greensboro ABC
Board are depreciated over the term of the lease agreement.