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CITY OF ROSEVILLE <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31, 2011 <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 />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 />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 />The City implemented GASB 51, Accounting and Financial Reporting for Intangible Assets effective <br />January 1, 2010, which required the City to capitalize intangible assets. Pursuant to GASB Statement <br />51, in the case of initial capitalization of intangible assets, the City chose to capitalize intangible <br />assets retroactively to 1980. The City was able to obtain historical costs and estimated fair value of <br />donated intangible assets as of the date of donation for the initial reporting of easements through <br />public works project records. <br />5. Compensated absences <br />It is the City's policy to permit employees to accumulate earned but unused vacation, Paid Time Off <br />(PTO), compensatory time, and sick pay benefits. There is an estimate for a liability for unpaid <br />accumulated sick leave, as employees may receive up to 320 hours upon retirement only. Vacation, <br />PTO, compensatory time, and estimated sick pay benefits are accrued when incurred in the <br />government -wide and proprietary fund financial statements. A liability for these amounts is reported <br />in governmental funds only if they have matured, for example, as a result of employee resignations <br />and retirements. <br />