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� CITY OF ROSEVILLE, MINDIESOTA NOTES TO THf; FINANCIAZ. STATEMF.NTS (CONTINUED) DECEMBER 31, 1976 Note 1- Summary of siQnificant accounting policies (Continued) Investments are carried at cost or amortized cost for investments on cahich premiums have been paid when purchased. The carrying value of such investments approrimates market and the investment income is recorded as earned. Inventories of inerchandise held by the Liquor Dispensary Fund and Golf Course Pund are valued at the lower of cost or market. Costs are determined in part by estimates which approximate the first-in, first-out method. � Pr�perty and equipment of the Enterprise funds are stated at cost with the ',`' depreciation recorded as an expense. Property and equipment of other funds are also stated at cost and are reported in the general fixed asset group of , accounts. These assets are recorded as expenditures of the respective funds ; at the time of purchase and the depreciation recorded thereou is reported as a reduction in the investment in general fixed assets. Depreciation is computed using the straight-line methoci over the estimaCed use- ful lives of the respective assets as follows: Buildings and structures _ Furniture and equipment Vehicles ��- Sewer and Water distri.bution systemi �^ Storm sewers Streets Street li.ghting 8 to 50 years 5 to 20 years 1 to 20 years 80 to 100 years 100 years 20 years 50 years �� General Long-Term Debt - The general long-term liabilities, except for enter- prise and special assessment funds, are nat carried as a liability of a fund but are rather set up in a separate self-balancing group of accouats kno��m as the "general long-term debt group oE accounts". Note 2 - Deferred Credit Under the terms of an agreement coith the Metropoli.tan tdaste Control Commission, the City ivill be repaid for sewer interceptors transferred in 1971. The present balance is presented as a receivable from the Commission on the balance sheet of the Sewer Operating Pund, which also includes deferred credits of the same amount. Repayment is made to the City hy issuing credits, over the ne�:t tcaenty- five years, against future setaer bi:Ll.ings from the Commission. Credits of $23p,689 in 1976 and $235,367 in 1975 were received to reduce disposal charges for each year.