Laserfiche WebLink
CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2016 <br />expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund <br />that is reimbursed. <br />The City provides temporary advances to funds that have insufficient cash balances by means of an <br />advance from another fund. Such advances are classified as "advances to/from other funds." Long- <br />term interfund loans are classified as "interfund loan receivable/payable." Any residual balances <br />outstanding between the governmental activities and business -type activities are reported in the <br />government -wide financial statements as "internal balances." All other interfund transactions are <br />reported as transfers. <br />L. CAPITAL ASSETS <br />Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, <br />sidewalks, street lights, and similar items) are reported in the applicable governmental or business -type <br />activities columns in the government -wide financial statements. Capital assets are defined by the City <br />as assets with an initial, individual cost of more than $2,500 and an estimated useful life in excess of <br />one year. Such assets are recorded at historical cost or estimated historical cost if purchased or <br />constructed. Donated capital assets are recorded at acquisition value at the date of donation. All <br />existing City infrastructure has been capitalized regardless of date placed in service. <br />The costs of normal maintenance and repairs that do not add to the value of the asset or materially <br />extend assets lives are not capitalized. Major outlays for capital assets and improvements are <br />capitalized as projects are constructed. Interest incurred during the construction phase of capital assets <br />of business -type activities is included as part of the capitalized value of the assets constructed. For the <br />year ended December 31, 2016, no interest was capitalized in connection with construction in progress. <br />Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities <br />with accumulated depreciation reflected in the Statement of Net Position. Capital assets are depreciated <br />using the straight-line method over their estimated useful lives. Since surplus assets are sold for an <br />immaterial amount when declared as no longer needed for City purposes, no salvage value is taken into <br />consideration for depreciation purposes. Useful lives vary from 3 to 30 years for buildings, office <br />furniture and equipment, vehicles, machine shop and equipment and other assets, and 15 to 50 years for <br />infrastructure. <br />M. COMPENSATED ABSENCES <br />It is the City's policy to permit employees to accumulate earned but unused vacation, PTO (Personal <br />Time Off), extended leave and sick pay benefits. All vacation pay and PTO and the portion of sick pay <br />allowable as severance is accrued in the government -wide and proprietary fund financial statements. <br />The current portion is calculated based on historical trends. <br />N. LONG-TERM OBLIGATIONS <br />In the government -wide financial statements and proprietary fund types in the fund financial statements, <br />long-term debt and other long-term obligations are reported as liabilities in the applicable governmental <br />51 <br />