2013 FINANCIAL STATEMENT - Laserfiche WebLink

Home

CITY OF GSM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS ❑15C15 1BER;3.1., 2613 } NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 1. :Special Assessment Revenue Recognition (Continued) Once a special assessment roll is adopted, the amount attributed to each parcel is a lie P p n Upon. that property until full payment is made or the amount is determined to be } excessive_ by the' City's-City Council or court action. If special assessments are allowed to go' delinquent, the property is subject to tax forfeit .sale and the first proceeds of that. sale (after costs, penalties and expenses of sale) are:rem(tted to the City in payment of* :delinquent special assessments. Generally, the City will collect the full amount .of its -special assessments not adjusted by the City's City Council or court action. Pursuant to State Statutes, a property -shall be subject to a lax forfeit sale after three. years unless It is h6mesteaded, agricultural or seasonal. recreational land in wliicli event the property is. subject to such sale after five years. J. Capital Assets Capital assets, which include property, plant; equiprnentr and Infrastructure assets. (e.g., roads, sidewalks, street lights, and similar. *items) are' .reported in the applicable governmental or business -type activities- -columns In the government -wide financial statements. Capital assets are recorded at Historical cost or estimated. historical cost: if purchased or constructed. The cost of nonnal.`mairiterlance and repairs that do not add to the value of the asset or materially extend asset. lives are not capitalized. Major outlays for capital assets and. improvements are. capitalized.as projects are constructed.. The government repoft infrastructure assets 9n a network and subsystem basis. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities) the .City chose. to include all such items regardless of their acquisition date or:amount. Depreciation on'. exhaustible assets Is recorded as anv allocated expense in the statement Of activities with accumulated depreciation reflected in the statement of net position. Since surplus 'assets are sold for an immaterial amount when declared as no longer needed for City purposes., no salvage value is taken into consideration for depreciation purposes. Capital assets not being;depreciated include construction in progress. Depreciation Estimated Assets Method Useful Life Buildings. Straight -Line 40 Years Oftide Equipment Straight -Line 5 - 10 Years :Utility'Systems Straight -Line 20 - 50 Years Infrastmeture Straight -Line 20 - 50 Years (21.)