2003-03-26 CC Packet - Laserfiche WebLink

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CITY OF CENTERVILLE. MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31. 2002 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED ! -, Special Assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. . . These assessments are recorded as receivables upon certification to the County. Special assessments are recognized as revenue when they are received in cash or within 60 days after year end. All special assessments receivable are offset by a deferred revenue liability. Interfund Reeeivables and PayabIes Transactions between funds that are representative oflendinglborrowing arrangements outstanding at the end of the fiscal year are referred to as either "interfund receivableslpayables" (i.e., the current portion ofinterfund loans) or "advances to/from other funds" (i.e.. the non-current portion of interfund loans). All other outstanding ~es between funds are reported as "due to/from other funds." Advances between funds are offset by a fund balance reserve account in applicable governmental funds to indicate they are not available for appropriation and are not expendable available financial resources. Inventories The inventories are stated at the lower of cost or market on the first-in. first-out (FIFO) method. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. Fixed Assets Fixed assets used in governmental fund types of the City are recorded in the general fixed assets account group at cost or estimated historical cost if purchased or constructed. Donated fixed assets are recorded at their estimated fair value at the date of donation. Assets in the general fixed assets account group are not depreciated. Interest incurred during construction is not capitalized on general fixed ~sets. Public domain (infrastructure) general fixed assets (e.g.. roads. bridges, sidewalks and other assets that are immovable and of value only to the City) are not capitalized. The cost of normal maintenance and repairs that do not add to the value of the asset or materia1Iy extend assets' lives are not included in the general fixed assets group or capitalized in the proprietary funds. Property, plant and equipment in the proprietary funds of the City are recorded at cost Property. plant and equipment donated to these proprietary fund type operations are recorded at their estimated fair value at the date ' . > of donation. , -13-