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CITY OF ROSEVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1984 Note 1- Summarv oF Significant Accountinq Policies (Continued) B. Measurement Focus (Continued) Fixed assets are all recorded at historical cost or estimated historical cost, if the original cost is not available. Donated fixed assets are stated at their fair market value on the date donated. Additions to fixed assets for general City purposes, including public domain (infrastructure) fixed assets, are recorded as an expenditure of the applicable fund in the year in which the asset is purchased, and are capitalized in the General Fixed Asset Account Group. Depreciation is not recorded on these assets. Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-term Debt Account Group, not in the governmental funds. The single exception to the general rule is for special assessment bonds, which are accounted for in special assessment funds. The two account groups are not "funds". They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. Noncurrent portions o£ long-term receivables due to governmental funds are reported on their balance sheets, in spite of their measurement focus. However, special reporting treatments are used to indicate in all governmental funds that they should not be considered "available spendable resources", since they do not represent net current assets. Recognition of revenues in these funds represented by noncurrent receivables are deferred until they become current receivables. Because of their spending measurement focus, expenditures recognition for governmental Yund types exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long-term Debt Account Group. Proprietary funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets, including fixed assets, and all liabilities, including long-term liabilities associated with their activity, are included on their balance sheets. Their reported fund equity is segregated into contributed capital and retained earnings components. Proprietary fund types operating statements present increases (revenues) and decreases (expenses) in net total assets. Fixed assets of the Enterprise funds are capitalized in these funds. Depreciation is charged as an expense against operations, and is provided on the straight-line method. The following table summarizes depreciable lives of types of property. Years Building and structures 25-40 Furniture, equipment, vehicles 5- 20 Distribution system 80-100