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CITY OF ROSEVII.LE, MINNESOTA NOTES TO TAE FINANCIAL STATEMENTS DECEMBER 31, 1981 ,''��Note 1- Summary of Significant Accounting Policies The City of Roseville, Minnesota, was incorporated on May 28,1948, and became a statutory City on January 1, 1974. The Cit}� operates under a Council-Manager form of government. The accounls of the City are organized on the basis of funds 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's assets, liabilities, fund equity, revenues and expenditures/ expenses. The legal or administrative basis for the establishment of each fund is explained on the divider preceding the 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 Accounti General, Special Revenue, Debt Service, Capital Projects, Special Assessments, Trust and Agency Funds are recognized on the modified accrual basis. Under the modified accrual basis, revenues are 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 and Internal . . ... _ . _ ... . Service funds are recognized on the accrual basis. Under the accrual basis, reven�es _._---... _. _. _ are recognized in the accounting period in which they are earned and become measurable; expenses are recognized in the period incurred, if ineasurable. The following transactions are accounted for as described below:, (a) General property taxes - Revenue is recognized in the year of _ anticipated collection, with amounts due from�fhe�County��and received early in�the��following year set up as a receivable (unremitted taxes). Allo�oances are provided for the fu11 amount of delinquent taxes receivable. The 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. (U) Principal portion of special assessments - Revenue is recogni.zed.. __ ___ _ .. in the year the assessment roll is adopted by the City.Council. (c) Interest revenue on special assessments receivable - Interest , revenue is recognized in the year.of anticipated_collection of� __.___._ __ .. the current principal installment. (d) Interest expense on bonded indebtedness - interest expense is �.--- recorded as an exnenditure when paid; unpaid �interest�is not , _.... _._... '�. accrued unless� fuT�1y mat�a�red. ��-- 31