Annual_Report_1995_001 - Laserfiche WebLink

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� Yi i �.• ' � 9m►�II�II: .• m • II . .• : :u . • . 7 ' 'r. ��nm_�arv pf Si�enific.ant Accnnnting Poli .ies - continued The County remits the collections to the Ciry and other tazing districts four times a yeaz, on or before January 20, April 19, July 5, and December 4. Property taz revenue is recorded when it becomes measurable and available. Taxes due from Ramsey Counry on December 31, 1995, aze included in 1995 revenue. Unpaid taaes at December 31 become liens on the respective property and are classified in the financial statements as delinquent tazes receivable. The receivable is fully offset by defened revenue as it is not available to finance current expendirures. Taxes payable on homestead property (as defined by State statutes) aze partially reduced by a homestead and agriculrural aid (HACA). This aid is paid to the Ciry by the State in lieu of taxes levied against homestead property. The State remits this aid in two equal installments in July and December each year. EixedAssets - General fixed assets aze not capitalized in the funds used [o acquire or construc[ them. Instead, capital acquisition and construction aze reflected as expenditures in govemmental funds, and the related usets ue reported in the general fixed assets account group. All purchased fixed assets aze valued at cost where historical records are available and at an estimated hisrorical cost where no historical records exist. Donated fized assets aze valued at their estimated fair mazket value on the date received. Fixed assets of the Enterprise funds are capitalized in these funds. Depreciation is chuged as an ezpense against operations, and is provided on the straight-line method. The following table summarized depreciable lives of types of property. Fised_Asset Yeats Building and Strucrures 25 - 40 Furniture, equipment, vehicles 5- 20 Distribution system 80 - 100 The wsts of nortnal maintenance and repairs that do not add to the value of the asset or materially extend asset lives aze not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Public domain ("infrastructure") general fixed asseu consisting of roads, bridges, curbs and gutters, streets and sidewalks, and tighting systems are not depreciated. These assets aze reponed in the general fixed asset group. Interest is capitalized on proprietary funds asseu acquired with taz-exempt debt. The amount of interest to be capitalized is calculated by offsettic�g interest expense incurred from the date of the borrowing until completion of [he project with interest eamed on invested proceeds over the same period. SpeciaL_Assessments - Special assessments are levied against the benefitted properties for the assessable costs of special assessment improvement projects in accordance with State statutes. The Ciry usually adopts the assessment rolls when the individual projects aze complete or substantialty complete. The assessments are collectible over a term of years generally consistent with the [erm of years of the related bond issue. Collection of annual installments (including interest) is handled by the Counry in the same manner as properry taxes. Property owners are allowed to prepay total future installments without interest or prepayment penalties. lnventoiies - Inventories held by the Enterprise funds aze stated at the lower of cost or muket, using the first-in, first-out method. The cost of inventory is recognized as expense at the time the items are sold or used (consumption method). Utility�ervice chazges are recognized when eamed with no allowance for uncollectible as delinquent accounts are certified as a lien against the property billed. Unbilled utility service charges are included in receivables at yeaz-end. 32