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2003 CAFR
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2003 CAFR
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CITY OF ROSEVILLE <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31, 2 0 0 3 <br />NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) <br />D. Assets, liabilities, and net assets or equity (Continued) <br />4. Capital Assets (Continued) <br />Assets <br />Years <br />Buildings <br />40 <br />Building Improvements <br />25 <br />Furniture and Equipment <br />5 <br />Light Vehicles <br />5 <br />Heavy Vehicles <br />10 <br />Fire Trucks <br />20 <br />Streets and public infrastructure <br />50 <br />Utility distribution systems <br />80 <br />5. Compensated absences <br />It is the City's policy to permit employees to accumulate earned but unused vacation, <br />compensatory time, and sick pay benefits. There is an estimate for a liability for unpaid <br />accumulated sick leave, as employees may receive 320 hours upon retirement only. Other <br />categories of employee separation qualify for no severance. All vacation and compensatory time, <br />and estimated retirement severance are accrued when incurred in government -wide, proprietary <br />fund financial statements. A liability for these amounts is reported in governmental funds only if <br />they have matured, for example, as a result of employee resignations and retirements. <br />6. Long -term obligations <br />In the government -wide financial statements, and proprietary fund types in the fund financial <br />statements, long -term debt and other long -term obligations are reported as liabilities in the <br />applicable governmental activities, business -type activities, and proprietary fund type statement <br />of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and <br />amortized over the life of the bonds using the effective interest method. Bonds payable are <br />reported net of the applicable bond premium or discount. Bond issuance costs are reported as <br />deferred charges and amortized over the term of the related debt. <br />In the fund financial statements, governmental fund types recognize bond premiums and <br />discounts, as well as bond issuance costs, during the current period. The face amount of debt <br />issued is reported as other financing sources. Premiums received on debt issuances are reported <br />as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds <br />received, are reported as debt service expenditures. <br />51 <br />
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