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CITY OF ROSEVILLE <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31,2004 <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 />With the initial capitalization of general infrastructure assets (i.e., those reported by governmental <br />activities), the City chose to include all such items regardless of their acquisition date or amount. The <br />City's Public Works Pavement Management Plan contained all historical costs for the City's general <br />infrastructure assets. As the City constructs or acquires additional capital assets each period, <br />including infrastructure assets, they are capitalized and reported at historical cost. The reported value <br />excludes normal maintenance and repairs which are essentially amounts spent in relation to capital <br />assets that do not increase the capacity or efficiency of the item or extend its useful life beyond the <br />original estimate. Donated capital assets are recorded at their estimated fair market value on the date <br />of donation. <br />Property, plant and equipment of the City are depreciated using the straight -line method over the <br />following estimated useful lives: <br />Assets <br />Years <br />Buildings <br />40 <br />Building Improvements <br />Furniture and Equipment <br />Light Vehicles <br />Heavy Vehicles <br />Fire Trucks <br />:a <br />Streets and public infrastructure <br />�a <br />Utility distribution systems�� <br />5. Compensated absences <br />It is the City's policy to permit employees to accumulate earned but unused vacation, compensatory <br />time, and sick pay benefits. There is an estimate for a liability for unpaid accumulated sick leave, as <br />employees may receive 320 hours upon retirement only. Other categories of employee separation <br />qualify for no severance. All vacation and compensatory time, and estimated retirement severance are <br />accrued when incurred in government -wide, proprietary fund financial statements. A liability for <br />these amounts is reported in governmental funds only if they have matured, for example, as a result of <br />employee resignations and retirements. <br />51 <br />