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❑ TY OF ROSEVILLE, M[NNESO?A NOTES TO FINANCIAL STATEMENTS (WNTINUED) DECEMBER 31, 1990 Note 1- Sumnarv of Siqnificant Accountinq Poticies (Continued) considered a measure of "avaitable spendable resources." GoverrmentaL fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other tinancing uses) in net current assets. Acrordingly, they are said to present a sWnriary of sources and uses of "available.spendable resources" during a period. , Fixed assets used in governmentat fund iype operations (general tixed assets) are accounted for in the General Fixed Assets Account Group, rather than in GovernmentaL Punds. Public domain generat fixed assets consisting of certain improvements other than buSldings, including roads, 6ridges, cur6s and gutters, streets and sidewaLks, and lighting systems, are capitalized along uith other generat fixed assets. No depreciation has been provided on general fixed assets. Long-term tiabiLities expected to be financed from goverrvnental funds are accounted for in the General Long- term Debt Acwunt Group, not in the governmentat tunds. The account groups differ trom "tunds" in that they are not involved uith measurement of operations. They are concerned only with the measurement of financial position. � Noncurrent portions of long-term receivabtes due to governmentaL funds are reported on their batance sheets, in spite ot their measurement fows. However, speciat reporting treatments are used to indicate in all governmeMal funds that they should not be considered "available spendable resources", since ihey do not represent net current assets. Recognition of revenues in these funds represented by noncurrent receivables are deferred untiL they become wrrent rereivables, Bewuse ot their spending measurement focus, expenditures recognition for governmental fund types excLude amounts represented by noncurreM tiabitities. Since they do not affect net wrrent 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 De6t Account Group. Proprietary funds are accounted for on a cost of services or "capital maintenance" measuremeM focus. This means that all assets, including fixed assets, and� all liabiLities, incLuding long-term liabilities associated with their activity, are intluded on their balance sheets. Their reported fund equity is segregated into contributed capital and retained earnings components. The operating statements ot the funds present increases (revenues) and decreases (expenses7 in net total assets. D. Basis of Accounting . The modified accrual basis of acrounting is used by all goverrvnentat fund types, expendable trust funds and .. agency funds. Under the modified accrual basis ot acrounting, revenues are recognized uhen suscep[ible to accruat (ie., when they become both measurabte and availahle). "Measurable" means the amount of the trans- '� action can be determined and "available" means coLlecii6le uithin the curreni oeriod or soon enough thereaf- ter to be used to pay liahilities of the current period. ihe city considers property taxes as avaitable if they are collected within 60 days after year end. Expenditures are recorded uhen the related fund liability � is incurred. Principat and interest on generel long-term debt are rzcorded as fund liabitities uhen due or � uhen amounts have been accumutated in the debt servire fund for payments io be made early in 2he foLlouing year. 3l