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CITY OF ROSEVILLE <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31, 2001 <br />NOTE 1- SUMMARY OF SIGNIFICANT ACCOIJNTING POLICIES (Continued) <br />D. Assets, liabilities, and net assets or equity (Continued) <br />5. Capital Assets <br />Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, <br />bridges, sidewalks, and similaz items), are reported in the applicable govemmental or business- <br />type activities columns in the government-wide fmancial statements. Capital assets are defined <br />by the City as assets with an initial, individual cost of more than $500 and an estimated useful <br />life in excess of 2 yeazs. Such assets are recorded at historical cost or estimated historical cost if <br />purchased or constructed. Donated capital assets are recorded at estimated fair market value on <br />the date of donation. <br />The costs of normal maintenance and repairs that do not add to the value of the asset or <br />materially extended assets lives are not capitalized. <br />Major outlays for capital assets and improvements are capitalized as projects are constructed. <br />Property, plant and equipment of the City is depreciated using the straight line method over the <br />following estimated useful lives: <br />Assets <br />Buildings <br />Building Improvements <br />Fumiture and Equipment <br />Light Vehicles <br />Heavy Vehicles <br />Fire Trucks <br />Streets and public infrastructure <br />Utility distribution systems <br />6. Compensated absences <br />Years <br />40 <br />25 <br />5 <br />5 <br />10 <br />20 <br />50 <br />80 <br />It is the City's policy to pernut 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 govemment-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 />43 <br />