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NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. The County provides tax settlements to cities and other taxing districts three times a year; in July, December, and January. I. Special Assessments Special assessments represent the financing for public improvements paid for by the benefiting property owners. These assessments are recorded as receivables upon certification to the county. The corresponding revenue from the delinquent (unremitted) and deferred (certified but not yet levied) special assessments receivable is deferred until the year in which it becomes available (collected within 60 days of year -end). J. Inventories The General Fund inventory consists of postage and is recorded using the consumption method of accounting. The Water Utility Enterprise Fund inventory consists of water meters. All inventory is accounted for at cost on a specific identification basis. K. Property, Plant, and Equipment 1. General Fixed Assets Account Group — Fixed assets are valued at historical or estimated historical cost. The City's capitalization policy states that all assets purchased for greater than $1,000 will be capitalized. All donated fixed assets are recorded at their estimated fair market value on the date received. No depreciation has been provided on general fixed assets. The costs of property, plant, and equipment are accounted for as current expenditures of the governmental fund types in the year purchased. The City has elected not to record infrastructure fixed assets in its accounting records. Interest incurred on the construction of fixed assets is not capitalized. 2. Proprietary Fund Type — Fixed assets of the Proprietary Funds are stated at cost, estimated cost, or, in the case of contributions, at fair market value at the time received. The City's capitalization policy states that all assets purchased for greater than $1,000 will be capitalized. Depreciation has been provided using the straight -line method over the estimated useful lives of assets, as follows: L. Long -Term Obligations Buildings 50 years Improvements 20 -50 years Machinery and equipment 5 -10 years Distribution system 50 years For long -term obligations, only that portion expected to be financed from expendable available resources is reported as a fund liability of a governmental fund. The remaining portion of such obligations is reported in the General Long -Term Debt Account Group. Long -term obligations financed by Proprietary Funds are reported as liabilities in the appropriate fund.