New York Codes, Rules and Regulations › Title 16 - DEPARTMENT OF PUBLIC SERVICE › Chapter V - WATERWORKS CORPORATIONS › Subchapter E - Uniform Systems Of Accounts › Article 1 - Classes A and B › Part 563 - Instructions-water Plant Accounts › Section 563.7 - Land and land rights

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
					 accounts for land and land rights shall include the cost of land owned in fee
					 by the utility, and rights, interests, and privileges held by the utility in
					 land owned by others, such as leaseholds, easements, water and water power
					 rights, diversion rights, submersion rights, rights-of-way, and other like
					 interests in land. Do not include in the accounts for land and land rights and
					 rights-of-way, costs incurred with first clearing and grading the land and
					 rights-of-way and the damage costs associated with the construction and
					 installation of plant. Such costs shall be included in the appropriate plant
					 accounts directly benefited.
(b)
					 Where special assessments for public improvements provide for deferred
					 payments, the full amount of the assessments shall be charged to the
					 appropriate land account and the unpaid balance shall be carried in an
					 appropriate liability account. Interest on unpaid balances shall be charged to
					 the appropriate interest account. If any part of the cost of public
					 improvements is included in the general tax levy, the amount thereof shall be
					 charged to the appropriate tax account.
(c) The net profit from the sale of timber,
					 wood, sand, gravel, other resources, or other property acquired with the
					 right-of-way or other lands shall be credited to the appropriate plant account
					 to which related. Where land is held for a considerable period of time and
					 timber and other natural resources on the land at the time of purchase
					 increases in value, the net profit, (after giving effect to the cost of the
					 natural resources) from the sales of timber or its products or other natural
					 resources shall be credited to the appropriate utility operating income account
					 when such land has been recorded in account 105, Water Plant Held for Future
					 Use, or classified as plant in service otherwise to account 421, Miscellaneous
					 Nonoperating Income.
(d) Separate
					 entries shall be made for the acquisition, transfer, or retirement of each
					 parcel of land, and of each water right, land right, (except rights-of- way for
					 distribution lines), having a life of more than one year. A record shall be
					 maintained showing the nature of ownership, full legal description, area, map
					 reference, purpose for which used, city, county, and tax district in which
					 situated, from whom purchased or to whom sold, payment given or received, other
					 costs, contract date and number, date of recording of deed, and book and page
					 of record. Entries transferring or retiring land or land rights shall refer to
					 the original entry recording its acquisition. A parcel of land acquired and
					 carried on the books as a unit is not required to be subdivided with transfers
					 to other land accounts merely because of the erection thereon of an incidental
					 structure to be used in water operations but for a purpose differing from that
					 for which the land is chiefly employed; for example, a small storehouse on
					 source of supply land.
Note: In the case of distribution land rights, when the
						expected period of occupancy does not exceed the estimated life of the initial
						plant installed, the cost of permits or privileges to place distribution lines
						or other distribution plant and the related pay and expenses of employees and
						other costs incident to acquiring such permits, shall be included in the
						account appropriate for the cost of the property constructed and not in the
						accounts for distribution land or land rights.
(e) Any difference between the amount
					 received from the sale of land or land rights, less agents' commissions and
					 other costs incident to the sale, and the book cost of such land or rights
					 shall be included in account 117, Accumulated Gains and Losses from Disposition
					 of Utility Land and Land Rights, when such property has been used in utility
					 service or recorded in account 105, Water Plant Held for Future Use, otherwise,
					 such difference shall be included in account 421.1, Gain on Disposition of
					 Property, or 421.2, Loss on Disposition of Property, as appropriate, unless a
					 reserve therefore has been authorized and provided. Appropriate adjustments of
					 the accounts shall be made with respect to any structures or improvements
					 located on land sold.
(f) The cost
					 of buildings and other improvements (other than public improvements) shall not
					 be included in the land accounts. If at the time of acquisition of an interest
					 in land such interest extends to buildings or other improvements (other than
					 public improvements), which are then devoted to water operations, the land and
					 improvements shall be separately appraised and the cost allocated to land and
					 buildings or improvements on the basis of the appraisals. If the improvements
					 are removed or wrecked without being used in operations, the cost of removing
					 or wrecking shall be charged and the salvage credited to the account in which
					 the cost of the land is recorded.
(g) When the purchase of land for water
					 operations requires the purchase of more land than needed for such purposes,
					 the charge to the specific land account shall be based upon the cost of the
					 land purchased, less the fair market value of that portion of the land which is
					 not to be used in utility operations. The portion of the cost measured by the
					 fair market value of the land not to be used shall be included in account 105,
					 Water Plant Held for Future Use, account 118.2, Other Utility Plant, or account
					 121, Nonutility Property, as appropriate.
(h) Provision shall be made for amortizing
					 amounts carried in the accounts for limited-term interest in land, so as to
					 apportion equitably the cost of each interest over the life thereof. (See
					 account 111, Accumulated Provision for Amortization of Water Plant in Service,
					 and account 404, Amortization of Limited-term Water Plant.)
(i) The items of cost to be included in the
					 accounts for land and land rights are as follows:
(1) Bulkheads, buried, not requiring
					 maintenance or replacement.
(2)
					 Cost, first, of acquisition including mortgages and other liens assumed (but
					 not subsequent interest thereon).
(3) Condemnation proceedings, including court
					 and counsel costs.
(4) Consents and
					 abutting damages, payment for.
(5)
					 Conveyancers' and notaries' fees.
(6) Fees, commissions, and salaries to
					 brokers, agents, and others in connection with the acquisition of the land or
					 land rights.
(7) Leases, cost of
					 voiding upon purchase to secure possession of land
(8) Removing, relocating, or reconstructing
					 property of others, such as buildings, highways, railroads, bridges,
					 cemeteries, churches, telephone and power lines, etc., in order to acquire
					 quiet possession.
(9) Retaining
					 walls unless identified with structures.
(10) Special assessments levied by public
					 authorities for public improvements on the basis of benefit for new roads, new
					 bridges, new sewers, new curbing, new pavements, and other public improvements,
					 but not taxes levied to provide for the maintenance of such
					 improvements.
(11) Surveys in
					 connection with the acquisition, but not amounts paid for topographical surveys
					 and maps where such costs are attributable to structures, or plant equipment
					 erected or to be erected or installed on such land.
(12) Taxes assumed, accrued to date of
					 transfer of title.
(13) Title,
					 examining, clearing, insuring, and registering in connection with the
					 acquisition and defending against claims relating to the period prior to the
					 acquisition.
(14) Appraisals prior
					 to closing title.
(15) Cost of
					 dealing with distributees or legatees residing outside of the State or country,
					 such as recording power of attorney, recording will or exemplification of will,
					 recording satisfaction of State tax.
(16) Filing satisfaction of
					 mortgage.
(17) Documentary
					 stamps.
(18) Photographs of
					 property at acquisition.
(19) Fees
					 and expenses incurred in the acquisition of water rights, and grants.
(20) Cost of fill to extend bulkhead line
					 over land under water, where riparian rights are held, which is not occasioned
					 by the erection of a structure.
(21) Sidewalks and curbs constructed by the
					 utility on public property.
(22)
					 Labor and expenses in connection with securing rights-of-way, where performed
					 by company employees and company agents.