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CITY OF ROSEVSLLE, MINNESOTA <br />NOTES TO TN� FINANCI9L STATEMENTS (CONTINUED) <br />DEC�MBER 31, 1981 <br />Note 1- Summarv of Si�nificant AccountinQ Policies (Cont <br />Basis of Accounting (Continued) <br />(e) Bond and interest payments due January 1- Expenditures are <br />recognized when amounts are remitted to the paying agent <br />(usually in December) for payment of bonds and interest. <br />(f) Unbilled Sanitary Sewer and Water Fund utility service <br />receivables are recorded at year end. <br />(g) Unpaid vacation, sick leave and compensatory time off are <br />not accrued as liabilities on the fund statements. <br />(h) Total Columns on the Combined Financial Statements are presented <br />only to facilitate financial analysis but do not present <br />financiai position, results of operations, or changes in <br />financial position in conformity with generally accepted <br />accounting principles. Neither is such data comparable to <br />a consolidation because interfund eliminations have not been <br />made in the aggregation of this data. . <br />Investments - Investments are carried at cost, which approximates market. <br />Inventories - Inventories held by the Enterprise funds are stated at the lower <br />of cost or market, using the first-in, first-out method. The only other items <br />of inventory would be a small quantity of supplies which are expensed when <br />purchased. <br />Fixed Assets and Depreciation - All assets are recorded at historical cost or <br />estimated historical cost, if the original cost is not availaUle. Donated fixed <br />assets are stated at their fair market value on the date donated. Additions to <br />fixed assets for general City purposes, including public domain (infrastructure) <br />fixed assets, are recorded as an expenditure of the applicable fund in the year in <br />which the asset is purchased, and are capitalized in the General Fixed Asset <br />Account Group. Depreciation is not recorded on these assets. <br />Fixed assets of the Enterprise �funds are capitalized in these funds. Depreciation <br />is provided on the straight-line method. The following table summarizes depreciable <br />lives by type of pre.perty. <br />Years <br />Building and structures <br />Furniture, equipment, vehicles <br />Distribution system <br />32 <br />ZS - 40 <br />5 - 20 <br />E 1 11 <br />