Annual_Report_1989_001 - Laserfiche WebLink

Home

CITY OF ROSEVILLE. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUEDI DECEMBER 31. 1989 Note 1- Summarv of Siqnificant Accountino Polities (Continued) Taxes payabLe on homestead property (as defined 6y State statutes) are partiatty reduced by a homestead aid. This aid is paid to the City hy the State in tieu ot taxes tevied against homestead property. The State remits this aid in two equaL instalLments in July and �ecemher each year. Fixed Assets - GeneraL fixed assets are not capitaLized in the funds used to acquire or construct them. Instead, capitaL acquisition and construction are reftected as expenditures in governmentat funds, and the related assets are reported in the generaL fixed assets account group. Atl purchased.fixed assets are valued at cost where historicaL records are avaitahte and at an esTimated historicaL rost uhere no histori- caL records exist. Donated fixed assets are valued at their estimated fair market value on the date re- ceived. The costs of normat maintenance and repairs that do not add to the value of the asset or ma[eriaLly extend asset tives are not capitatized. Improvements are capitatized and depreciated over the remaining useful lives ot the related fixed assets, as appLicabLe. Public domain ('infrastructure") general fixed assets consisting ot roads, 6ridges, curbs and gutters, streets and sidewaLks, and lighting systems are no[ capitaLized, as these assets are immovable and of value �� �- only to the qovernment. Assets in the general fixed assets account group are not�depreciated. Depreciation ot 6uiLdings, equipment and vehictes in the proprietary types is computed using the straighi-line method. Interest is capitaLized on proprietary funds assets acquired with taz-ezempt debt. The amount of interest to he capitalized is caLculated by offse[ting interest ezpense incurred from the date of the 6orrowing untit comptetion of the project with interes[ earned on invested proceeds over the same period. SpeciaL Assessments - Speciat assessments are levied against the benefited properties for the assessa6Le costs of speciaL assessment improvement projects in accordance with State statutes. The City usuatty adopts the assessment rolts when ihe individuaL projects are complete or substantiaLLy complete. The assessments are coLLectible over a[erm ot years generaLLy consistent with the [erm of years of the retated bond issue. Colte<tion of annual ins[aLtments (inctuding interest) is handLed hy the County in the same manner as property taxes. Property ovners are aLlowed to prepay totat tuture instaLLments without interest or prepayment penatties. I�ventories - Inventories heLd hy the Enterprise funds are stated at the lower of cost or market, using the first-in, first-out method. The cost ot inventory is recognized as expense at the time the items are sold or used (wnsump[ion method). U[ili[y service charges are recogniied when earned with no allowance for uncottectible as delinquent accounts are certified as a tien against the property 6illed. Unbitted utitity service charges are induded in receiva6Les at year-end. Encumbrances - Encumbrances represent purchase commitments. Encumbrances outstanding at year-end are reported as reservations of fund 6alances since they do not constitute expenditures or liabilities. Vacation, Sick and Compensatory Time Off Pay - The City compensates employees upon termination for unused vawtion and compensatory time off. EmpLoyees are not compensated for unused sick pay upon terminatiort ,.. !A'.�.,r�. 33