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CITY OF ROSEVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS D�C�MBER 31. 1979 Note 1- Summar_y.of Significant Accounting Policies The City of Roseville, Minnesota, was incorporated on May 28, 1948, and became a-� statutory City oa Sanuary 1, 1974. The City operates under a Council-Manager form of govern�ent. � The aceoants of the City are organi.zed on the basis of fuads and account groups; each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts which comprise each fund'� assets, liabilities, fund equity, revenues and expenditures/ espenses. The 1ega1 or administrative basis for the establishment of each fund is explained on the divider preceding Lhe statements for each of the fund types. The accounting policies of the City of Roseville conform to generally accepted accounting principles applicable to governmental units. The following is a summary of the more significant policies�. Basis of Accouating � General, Special Revenue, Debt Service, Capital Projects, Special Assessments.funds and Agency Funds are recognized on the modified accrual basis. Under the modified accrual basis, revenue is recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the fund incurred the liability, if ineasurable, except for unmatured interest on general long-term debt and special assessment debt. Enterprise funds are recognized on thz ac�crual basis. Under the accrual basis, revenue is recognized in the accounting period in which they are earned and become measurable; expenses are recognized in the period incurred, if ineasurable. The fallowing transactions are accounted for as described below: � (a) Geaeral property taxes - Revenue is recognized in the year of anticipated collection, with amounts due from the County and recei��ed early in the following year set up as a receivable {unremitted taxes). Allowances are provided for the full amount of delinquent taxes receivable. This procedure has the effect of recognizing general property taxes as revenue when cash is received because of the uncertainty of collection of the delin- quent amount. � (b) Znterest revenue on special assessments receivable - Interest reven�ie. is recognized in the year oT anticipated collection of the current principal installment. (c) Interest expense on bonded indebtedness - Interest expense is recosded as an expenditure when paid; interest is not accrued unless fu11y matured and not paid. (d) Bond and interest payments due January 1- Expenditures are recognized when amounts are remitted to the paying agent (usually in December) for payment of bonds and interest. 25