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CITY OF ROSEVILLE. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUE�) DECEMBER 31. 1986 Note 1- SummarV of SSanificant AccountinQ Policies (Continued) Cepital projects funds - Capital projects funds are used to account for financial �' resources Lo 6e used for the acquisltion or construction of major capltal � facilities and equipmenG, - Special assessment funds - Special assessment funds are used to account for the flnancing of publlc Improvements or serviws deemed to benefit the properties '�.. against whlch special assessments are levied. '� PROPRIETARY FUNDS Enterprise funds - Enterprise funds are used to account for operations that are .; financed and operated in a mannec similar to private business enterprises - where '�� the intent is that the costs (expenses, including depreciation) of providing goods or services to the general public on a contin�ing basis be financed or recovered primarily through user charges. Internal servi ws funds - Internal servl w funds are used to account for the � financing of qoods or services provided by one department to other departments of the City. ',, FI➢UCIARY FUNDS �'� Agency funds - Agency funds are used to account for the assets held by the City , as an agent for a governmental unit. �. B. Measurement Focus ' , The accounting and reporting treatment applied to the fixed assets and long-term 1labilities associated with a fund are determined by Sts measarement focus, . Governmental funds and Expendable Trust funds are accounted for on a spending or - "£inanciai flow" measurement focus, This means that only current assets and current liabilities are generally included on their balance sheets, Their reported fund , balance is considered a measure of "available spendabie resources." Governmental fund operating statements present increases (revenues and other financing sources) , and decreases (expendltures and other financing uses) in net current assets,, � Accordingiy, they are said to present a summary of sources and uses of "avallable � spendabie resources" during a period, ��,; Fixed assets ara all recorded at historical cost or estimated historical cost, i£ the �� orSginal cost is not available, Donated fSxed assets are stated at their fair market value on the date donated, Additions Lo fixed asse[s for general City purposes, , Sncluding 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 Ss not recorded on these assets, Long-term liabilities expected to be financed from governmental funds are accounted '� for in Lhe General Long-term Debt Account Group, not !n the governmental funds, The � single exception to the general rule is for special assessment bonds, which are accounted for i❑ speciai 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 of long-term receivables due Lo governmental funds are reported . ' on their balance sheets, in spite of their measurement focus. However, special '�� reporting treatments are used to indicate Sn all governmental funds that they should not be considered "avallable spendable resources", since they do not represent net , curcent assets. Recognition of revenues in these funds represented by noncurCent '�, receivables are deferred until they become current receivables. '��. Because of their spending measurement focus, expendltures. recognitio❑ for governmental fund types exclude amounts represented by noncorrent liabilities. SSnce ; 29-