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CITY OF ROSEVILL�, MINNESOTA NOTES TO T'HE FINANCIAL STAT�MENTS (CONTINUED) DECEMBER 31, 1980 Note 1- Summary of Si,Qni.ficant Accountin� Policies (Continued) �asis of Accounting (Continued) (e) Bond and interest payments due �anuar} 1�- ExPr-_nditures are recognized �ahen amounts are remitted to the paying agent (usual.ly in December) for payment of bonds and interest.� (f) Unbilled Sanitary Sewer and Water Fund utility service receivables are recorded at year end. _ Investments - Investments are carried at cost, which approximates market. Inventories - Inventories held by the Enterprise funds are stated at the lower of cost or market, whichever-is lower using the first-in, first-ouL met:iod. T6e only other items of inventory would be a sma11 quantity of supplies which are espensed when purchased. .�� -- Fixed Assets and Depreciation - A11 assets'are recorded at historical cost or estimated historical cost, if the original is not available. Additions to fixed assets ior general City purposes, including public domain (infrastructure) fixed assets, are recorded as an expenditure of the applicable fund in the year in which this asset is purchased, and are capitalized in the General Pixed Asset Account �`�� Group. Depreciation is not recorded on these assets. ��Fixed assets of the Enterprise Funds are capitalized in these funds. llepreciation -� is provided on the straight-line method.�. The following table summarizes depreciable lives by type of property. �- . Years Building and structures 25 - 40 Furniture, equipment, vehicles 5- 20 Distribution systems 80 - 100 General Long-term Debt - The general Long-term liabilitEes, except for Enterprise and Special Assessment funds, are not carried as a liability of a fund, but rather are set up in a separate self-balancing group of accounts known as the "general long-term debt group of accounts". Budget - The City adopts an annual budget for the General and Special Revenue Funds which are prepared on the modified accrua7. basis of accounting. The adopted budget indicates the amount that can be expended by each department and each fund based on detailed Uudget estimates for individual expenditure accounts. All budget revisions must be authorized by the City Council at the request of the City Manager. A11 supplemental appropriations for 1980 wer.e financed by transfers from the Contingency Section of the General Fund. A11 budget amounts lapse at the end of the year to the extent they have not been expended or encumbered. 30