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HOUSING AND REDEVELOPMENT AUTHORITY OF ST. ANTHONY NOTES TO FINANCIAL STATEMENTS DECEMBER 31 , 1999 Note 1 . Significant Accounting Policies, continued H. Property, Plant and Equipment . Property, plant and equipment of the Authority are stated at historical cost or estimated cost if actual cost is not available. Fixed assets acquired or con- structed by governmental funds are recorded as expenditures in' these funds. These fixed assets are not capitalized in individual funds but rather are reported in the General .Fixed Assets„ Account Group. No depreciation has been provided for on general fixed assets. Land and other assets acquired, which are subsequently sold to other parties, are considered a cost of the project and not capitalized. I: Bonds Payable IGeneral obligation refunding tax increment, general obligation tax increment, and general obligation taxable tax increment bonds issued for the Authority by the City of St. Anthony are recorded as a liability in the General Long-Term Debt Account i Group. It is intended that tax increment and other revenues generated from tax increment finance districts will be used to retire the bonds and related interest.. These bonds are secured by the full faith and credit of the City. Principal and interest payments related to these bonds are recorded as an-expenditure in the debt service funds when paid; interest is not accrued unless fully matured and not paid. J. Fund Equity Investment in general fixed assets represents the Authority's equity in fixed assets. Reserved fund balances represent amounts not available for expenditure or legally segregated for a specific future use. K. Interfund Transactions Quasi-external transactions are accounted for as revenues and expenditures, as appli- cable to each fund. Transactions that constitute reimbursements to a fund for expen- ditures initially made from it that are properly applicable to another fund are re- corded as expenditures in the reimbursing fund and as a reduction of expenditures in .the fund that is reimbursed. All other interfund transactions are reported as transfers. Nonrecurring or non- routine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. 1 L. Use of Estimates The preparation of these financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. -11-