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42 <br />EITY OP ROS&VILLE_,_MINNESOTA <br />NOTES TO THE FINANCIAL STA1'EMENTS (GONTINUED) <br />DE;CEMBER 31, 1975 <br />Note 1- Summary of si n� ificant accountin£ polici.es C�ntinued) <br />Znvestments are carried at cosL- or amortized cost fer investments on which <br />premiums have baen paid when purchased. The carrying value o£ such investments <br />approximates market and the investment income is r.ecorded as earned. <br />Inventories of inerchandise held by the Liquor Dispensory Fund and Golf Course <br />Fund are valued at the lower of cost or mark�t. Costs a-re determi�aed 1.n part <br />by estimate^, which approxim�tte the first-in, first-out method. <br />Property and equipment of the cnterprise f.end�� are stated ar cost with the <br />depre.ciation recerded as an euren�e. cr:;percy and equip:nent cf- e'�i7er. funds <br />are a1�c stat�d at cost ar.d are reported in the f>;>.r_:ral tixed a�sc:t ��oup oc <br />accounC:a. These assets are recorded as e�:pecidicures of the i�espae�ive funds <br />at the ti.me oE purchase: and the depreciatioa recnr.ded thereon rs repe�ted as <br />a reduc,tion in the investmi�tat in gerierai fixed asseCs, <br />Depreciation is computed using the straight-lir.e method over tne estimate2 use- <br />Eul lives of the respective assets as foli.ocas: <br />Bui.ldin�s and structures <br />Pvxniture and equipmNnt <br />Veh ic le: s <br />Sew�,r and Water distribution system <br />Storm sewers <br />St:.rc:ets <br />Street: lighting <br />3 t.o SJ years <br />5 to �0 years <br />1 tn 2.0 ye�.rs <br />8� to lOQ years <br />100 yeazs <br />20 years <br />50 years <br />General Lo�:g-Tern D�bt - The general long-term liabilities, ?�;cept £or en.ter- <br />prise anci special assessment ftmds, are not carried as a I.iabil.ity of a fund <br />oirt are raTYier set up in a separate self-bal.ancing group oE accounts known as <br />the "�eriera� lung-texm debt grc,up o£ accounks". <br />Note 2. - Defe!•re3 i:redit <br />IInder the t::rn� of aa agreement caixh the hietropolitan Waste Control Commission, <br />the City will be repaid for, sewer inter.ceptors tr.ansferred in i471. The pr.esent <br />bnlanc:e is presented ac; a receivahle from the Com;nission ari the ba;.ance sl�eet <br />cf the Sewe_• Ooerating Fund, whi.ch also includes dNier.red credits of t}xe same <br />amoirnt. Repay:�n�nt ;.s :,:ad� to the City by issuing rredit:,, ov�r the nzxt twenty- <br />five year:;, zgainst fu:ture se�aer billings from the Conrtu.ssion. Cr�>dits of <br />;235,367 i.eti 1975 and $2�+0,043 in 7.J74 were received to reduce disposal charges <br />::er each year. <br />