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4ITt OF ROSEVIILE. MINNESOTA <br />MOTES TO FINAXCIAL STATENENTS CCONTtNUED) <br />DECEMBER 31. 1991 <br />Note 9- Sum�erv of Signifiesnt Accointirx� Polieies (Contirwed) <br />Gubtie donrin <•infrsatru�ture") ycnerel tixed asstts eonistinp of roads, bridpes, curbs �nd putters, streets <br />nd sidewalks, snd tiphtirq systaes ere espitelized, n tbese essets are immovable and ot vetue only to the <br />poverrmmt. <br />Aasecs in the genenl tixad �asets account proup sre not depreeined. Deprecietion of buitdings, equipment end <br />vehieles in the proprietsry types is coaputcd usinp the atraiqht-line method. <br />fnterest is tapitetixed on proprietary funds essets xquired �ith taa•exdrQt debt. The amov+t of interest to <br />be capitalized is eetculaied by offsettinp interest expense i�curred from tbe dete of the borrowing until <br />eaWpletion of eke projeet with interes4 eernd on invested prxeads over ¢he same perSod. <br />Soeeial Assessaimts - Spetial esaessmen4s are tevied apainat the henefi4ed properties for the essessable eosts <br />of epeeial �ssessmm4 iaprovemmt projeets 9fl ueordanee ri4h State sYa4uYes, TAe City uswlty adopts the <br />assessmmt rolls cihm the fndividwl projeets ere oa�late or substanYi�tly ea�tete. The easessments are <br />colleetible over a term of yeers penerally eonsiatmt with tbe tera of yeara of ehe releted bord issue. <br />Colleetion of emwl installments (ineludinp interest) is hardtcd by the Canty in the saine menner as property <br />trxes. Property ownen sre ellowed to prepsy total future irutell�nents without interest or prepeyment <br />perulties. <br />Irnmtories - Imentories held by the Enterprise tvds are stetcd et the lower of eost or ma�ket, using the <br />tirst-in, first-out niethod. The coat of irnmtory is racaynixcd as expense et the time the itema ere sold or <br />used (eanuiQcion methad). <br />Utilitv serviee eharses are recoqnixed yhen earned rith ro attorence for vieollectible as detirpuent accoun4s <br />ere eereified as a!im agsinst the property billad. UMilled utility service eherges ere inetuded in <br />receivables et yeer-end. <br />Ene�mbrances - Encu�renen represmt purchsse cax�itmmts. Encuibrences outstardinq at year-erd are reported <br />as reservatia�s of fvd balences since they do not constitute experditures or liabitities. <br />Vecation. Siek and Camensetorv Time Off Pev - ihe City caryeneates e�toyees �pai termination for urwsed <br />v�eetion and eaipensatory time off. Eaployees ere not co�ensated for vuscd sick pay upon terminetion of <br />aploymmt, except �{wn retirement, st yhieh time aiQloyeea are er�titted to one-hs6f of their accuauleted leave <br />t4 to one ironth's psy. Vececion �nd eompenaatory tiwe off ere �ccn�ed yhm esrned end sick pey is expmscd yhen <br />peymmt is mWe in the praprietery fvds. Vseatio�, ea�pernetory time off, vW sick pay are recognized when <br />pqmient ie wede in ihe povermental tv+ds. Liabiliiy for the poverrnienEel fuMs is refteeied in the Gerxrat <br />Laq-Te�m Debt Aecant Gro�p represmtirq the City's eammitmmt to fv�d such coats from future operetims. <br />Cesh Flows - for purposes of this atetement, •ll hiyblY liWid investmenb (includinp restricted esse[s) rith <br />• �rturity of three inontAa or less yhm purehased ere eonsidered to be csah cquivetents. <br />34 <br />