CCP 05-15-2006 - Laserfiche WebLink

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.NoteI: . . CITY OF ARDEN HILLS, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31 SUMMARY OF SIGl\'1FICANT ACCOUNTING POLICIES - CONTINUED Interest incurred during the construction phase of capital tsB' e*s:Ft~ capltahzed value of the assets constructed.. -, .I. . of the Property, plant and equipment are depreciated using the lives: . ght-line method over the following estimated eful Assets Useful Lives in Years Buildings and improvements Infrastructure and improvements Machinery and eqnipment Office furniture and equipment Vehicles 7 -40 15 - 50 5 -15 5 - 10 7 -20 Compensated Absences It is the City's policy to pennit employees to accunmlate earned but illlused vacation and sick pay benefits. Employees 'With at least ten years of service arc entitled to receive one-third of their unused sick leave up to a maximum of 800 hours upon termination in addition to any unused vacation and compensatory time. All vacation pay is accrued when incurred in the government-v..ride and proprietary flllancial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example~ as a result of employee resignations and retirements. Long-term Obligations In the government-wide financial statements, and proprietary fund types in the fund fmancial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business- type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight line method. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund fmancial statements, governmental fund types recognized bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other fmancing uses. Issuance costs, whether or not withheld from the actual debt proceeds received) are reported as debt service expendinrres. Net Assets In the government-Viride fmancial statements, net assets represent the difference between assets and liabilities. Net assets are displayed in three components: a. Invested in capital assets, net of related debt - Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. b. Restricted net assets - Consist of net assets restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. c. Unrestricted net assets - All other net assets that do not meet the defInition of "restricted" or "invested in capital assets, net of related debt". -28-