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CITY OF ROSEVILLE NOTES TO FINANCIAL STATEMENTS DECEMBER 31. 1997 Note 1- Summarysf Sienificant Accounting Policies - continued The County spreads the levies over all ta�cable propetty in the City, Such taxes become receivables of the City as of January 1. Property taxes are payable in equal installments by propeny owners to the Counry as follows: Personal propetty - February 28 and June 30 Real property - May IS and October 15 The County remits the collections ro the Ciry and other ta�cing districts four times a year; on or before January 2Q April l9, July 5, and Decemi�er 4. Properry tac revemie is recorded when it becomes measurable and available. Taxes due from Ra�nsey Counry on December 31, 1997, are included in 1997 revenue. Unpaid taxes at llecember 31 become liens on the respective pro�erry and are classified in d�e financial statements as delinquen[ taxes receivable. The reeeivable is fiilly otfset by deferred revenue as i; is not availabl� [o tinance currenc expendirwes. Taxes payable on homestead property (ae defired by srate stamtes) are partially reduced by a homes[ead and agricWtural aid (HACA). This aid is paid to the City by the State in lieu of taxes levied a@ainct homes[ead property. The State remits this aid in two equal instalimen[s in JWy and December each yeu. Fixed Assets - Gereral fixed assets are not capitalized in the funds used ro acquire or construct them. Instead, capital acquisition and construction are reflected as expendimres in governmental funds, and the related assecs are reported in the general fixed assets account group. All purchased fixed assets are valued at cost where hisrorical records are available and at an estimated historical cost where no historical records e�cist. Dortated fixed assets are valued at their estimated fair market value on the date received. Fixed asse�c of the enterpnse fiuds are capitalized in them funds. Depreciadon is chtarged as an expense against operations and is provided on the straight-lire method. The following wble swnmarizes depreciable tives of types of property. Fixed Asset Years Buildings and structures 25 - 40 Fumiture, equipment, vehicles 5- 20 Distributian systems 80 - 100 The costs of rortnal maintenar�ce and repairs that do not add to the value of the asset or materially exterxl asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Public domain ("infraewcture") general fixed assets concisting of roads, bridges, curbs and gutters, streets and sidewalks, and lighting systems are not deprecia[ed. These assets are reported in the ge�xral fixed asset group. Interest is capitilized on propnetary funds' assets acquired wi[h tax-exeinpt deb[. The e�nount of interest to be capitalized is calculated by offsettin� interest eapense ircurred from the da[e of the borrowing wltii completion ot the projec[ with interest earned on invested proceeds over the same period. �nP��al Assessments - Special assessments are levied a�aina the benetitred proper[ies for [he assessable costs of special assessment improvement projects in accordance with state stamtes. The City usually adopts the assessment rolls when the individual projects are complete or substaryialty complete. Tt� assessments are collectible over a[ern� of years generally consisrent with the term of years of the related bord issue. Coilection of annual installments (includin� interest) is ttandled by d�e County in the sa�ne manrer as property taxes. Propeny owners are allowed to prepay total future installments widiout interest or prapayment penalties. 32