Annual_Report_1992_001 - Laserfiche WebLink

Home

CITY OF ROSEVILLE MINNESOTA � NOTES TO F[NANCIAL STATEMENTS DECEMBER 37, 1992 Note 1- Suimarv of Sianificant Attountina Policies (Continued) Fixed assets of the Enterprise funds are cepitatized in these tunds. Deprecietion is charged es an expense a9einst operations, end is provided on the straiBht-line method. The follouing tabte s�mnarized depreciable lives of types of property. Years Building and Structures 25- 40 furniture, equipnent, vehicles 5- 20 Distrilwtion system 80-100 The casts of normal maintenance and repairs thet do not add to the velue of the asset or meterially extend esset lives are not capitatized. I�rovements are capitalized and depreciated over the remeining useful lives of the releted fixed essets, es applicable. Pubtic danain ("infrastructure"> general fixed assets consisting of roads, bridges, curbs and gutters, streets end sideualks, and lighting systems are not capitalized, as these assets are immovable and of value onty to the goverrvnent. Assets in the general fixed essets account group are not depreciated. Depreciation of buitdings, equipment and vehictes in the proprietary types is com{wted using the straight•line method. interest is capitatized on proprietary funds assets acquired uith tax-exempt debt. The amount of interest to be capitalized is calculated by offsetting interest expense incurred fran the date of the borrouing until canpletion of the project with interest earned on invested proceeds over the same period. Scecial Assessments • Special assessments ere levied against the benefited properties for the assessabte costs of speciat essessment improvement projects in actordance uith State stetutes. The City usuatty adopts the assessment roLls when the individuat projects are comptete or substantially cortplete. The assessments are collectibte over a term of years generally consistent uith the term of years of the related bond issue. Collection of annuat instellments (inctuding interesU is handled by the County in the same manner as property taxes. Property ouners ere altowed io prepay totat fuiure instatlments uithout interest or prepayment penalties. Inventories - Inventories held by the Enterprise funds are stated at the louer of cost or market, using the first-in, first-out method. The cost of inventory is recognized as expense at the time the items ere sold or used (constmption method). Utilitv service charges are recognized uhen earned uith no allouance for unrollettible as detinquent accounts �.. are certified as a lien against the property bilted. Unbilled utility service tharges are included in ' receivabtes at year-end. Encum6rances - Encunbrances represent purchase commitments. EncuN�rances outstanding at yearend are reported � as reservetions of fund balances since they do not constitute expenditures or liebilities. . Vacation Sick end Comcensatorv Time Off Pav - The City compensates ertployees upon termination for unused vawtion and compensatory time off. Emptoyees are not compensated for unused sick pay upon termination of ��.. emptoyment, except upon retirement, at which time employees are entitled to one-half of their accumulated teave �. up to one month's pey. Yacation end conpensatory time oft are atcrued uhen earned and sick pay is expensed when .. payment is made in the proprietary funds. Vacation, conpensetory time off, end sick pay are recognized uhen peyment is made in the goverrvnental funds. Liabitity for the goverrmental funds is reftected in the General Long-Term Debt Rceount Group representing the City's commitment to fuM such rosts fran future operations. - . Cash Plows - For purposes of this statement, ell highly liquid investments (including restricted assets) uith - a maturity of three months or tess uhen purchased are considered to be cash equivalents. Claims - There are e nuiber ot claims for uorker�s compensetion and liability damege in the internal service tunds which have occurred but have not yet been conveyed to the City on Dece�er 31 of eath year. The City prepares an estimate of those claims besed on historical information and subsequent events. The amount of the estimate is expensed and shoun es e current liability for the reporting year. Post-Retirement Benefits - The City does not provide for employee post•retirement benefits. G. Comperative Data Cortparative data for the prior year have been presented to provide an understanding of changes in � the City's financial position and operations. �� 33