1998 CAFR - Laserfiche WebLink

Home

CITY OF 12AMSEY I Notes to Financial Statements (continued) December 31, 1998 NOTE 1 -SIGNIFICANT ACCOUNTING POLICIES CONTINUED ( ) G. Special Assessments Special assessments represent the .financing for public improvements paid for by the benefitting 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). H. 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 on a lower of cost (first-in, first-out) or market basis. I I. Property, Plant, and Equipment 1. General Fixed Assets Account Group -Fixed assets are valued at historical or estimated historical cost. 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. Depreciation has been provided using the straight-line method over the estimated useful lives of assets, as follows: Buildings 50 years Improvements 20-50 years Machinery and equipment 5-10 years Distribution system 50 years J. Long-Term Obligations For long-term obligations, only that portion expected for 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. -15-