CCP 05-22-2006 - Laserfiche WebLink

Home Browse Search

.otel: . . CITY OF ARDEN lULLS, MINNeSOTA NOTES TO TIlE FINANCIAL STATEMENTS DECEMBER 31 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED In ' dd' th . h f . II ~fu ~ A VI ~d ' terest mcurre unng e constructIOn p ase 0 capIta asse~",f1l3'sirSJYPe ael1Y1,l1eS[,illlC u'deiil!ts p capltallZed value of the assets constructed. JI..J.' Jl.'~ ..1 . Property, plant and equipment are depreciated using the ,aight-line method over the following estimated useful lives: . of the Assets Useful Lives in Years Buildings aud improvements Infrastructure and improvements Machinery and equipment Office furniture and equipment Vehicles 7 - 40 15 - 50 5 - 15 5 - 10 7 - 20 Compensated Absences It is the City's policy to permit employees to accumulate eamed but unused vacation and sick pay benefits. Employees with at least ten years of service are entitled to receive one-third of their unused sick leave up to a maximum of 800 hours upon tennination in addition to any unused vacation and compensatory rime. All vacation pay is accrued when incurred in the government-v.ride and proprietary financial statements. A liability for these amounLc;; 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 governmcnt-v.ride 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 cbarges and amortized over the term of the related debt. In the fund financial statements, govemmental 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 fmancing sources. Premiums received on debt issuances arc reported as other fInancing SOillces 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 expenditures. Net Assets In the government~wide fInancial statements, net assets represent the difference between assets and liabilities. Net assets are displayed in three component,>: 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-