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CITY OF ROSEV RLE MINNESOTF NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1990 Note 7- Sumnary ot Sianiticant Accountino Policies (Continued) The County spreads the levies over all tazabLe property in the City. Such taxes become receivables of the City as of January 1. Property taxes are payabte in eq�al instatlments by property ouners to the CounTy as folLous: Personal property - February 28 and June 30 Real property - May 15 and October 15 The County remits the collections to the City and other taxing distrias four [imes a year, on or before January 20, April 19, JuLy 5, and Derember 4. Property tax revenue is rerorded uhen it becomes measurable and avaitable. Taxes due from Ramsey County on �ecember 31, 1990, are incLuded in 1990 revenue. �� Unpaid taxes at December 31 become liens on the respective property and are classified in the financial statements as delinquenT taxes receivable. The receivable is futly offset by deferred revenue as iY is not availabte to finance current expenditures. Cities in Minnesota operate under a levy limitation lau which allows an increase in the tax levy each year '� in accordance uith state statutory provisions. That increase has been 3% for 1990. The pertentage increase is further indexed by the percentage increase in households or population, uhichever is greater. Levies for bonded indeb[edness are not limited by the lau. . Taxes payable on homestead property (as defined by State statutes) are partiatly reduced by a homesTead aid. This aid is paid to the City by the Staie in tieu of taxes levied against homestead property. The State remits this aid in tuo equal instatlments in Juty and �ecember =ach year. Fixed Assets - General fixed assets are not capitalized in the funds used to acquire or construct them. Instead, capital acquisition and construction are reftecied as expenditures in governmental funds, and the �. related assets are reported in the general fixed assets account group. All purchased fixed asseTs are valued at rost uhere historical records are available and at an estimaied historical cost uhere no histori- � cat records exist. Donated fixed assets are valued at their estimated fair market value on the date re- ceived. ' Fixed assets of the Enterprise funds are capitaLized in these tunds. DeprecSation is charged as an expense against operations, and is provided on the siraight-Line meThod. The following tahLe simnarized depreciabte � � Lives af types of property. Years . Building and Structures 25-40 �� Furniture, equipmenC, vehictes 7-20 Distribution system 80-100 �� The costs of normal maintenance and repairs that do not add to ihe value of the assei or materially extend asset lives are not wpitalized. Improvements are capitalized and depreciated over the remaining useiul �� lives of the related fixed assets, as appticable. ��. 33