Ten years ago, the High Bridge Municipal Utility District (an independent government) was granted an easement (a right to use the land of a private party) at no cost by a developer with the agreement that the easement be used to provide roads. At the time the developer granted the easement, the value of the surrounding land was $2,000 per acre. The easement occupied 10 acres of land. When, five years ago, the developer began construction of a subdivision, the land was appraised at $10,000 per acre. When the subdivision was completed, the value of surrounding land had increased to $60,000 per acre. At what value, if any, should the district report the easement on its government-wide statements?

  • CreatedAugust 13, 2014
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