1983-03-02 Regular Meeting - Laserfiche WebLink

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e e CITY OF LA PORTE Page 3 of 12 . .- NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,1982 . .. . \ . Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. The City records all general fixed assets except domain assets such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and similar assets that are immovable and of value only to the City. All fixed assets are valued at historical cost or estimated historical cost if actual histo~ica1 cost is not available. No depreciation has been provided on general fixed assets. Long-Term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group, not in the governmental funds. The two account groups are not "funds.1I the measurements of financial position. measurement of results of operation. They are concerned only with They are not involved with . Because of their spending measurement focus, expenditures recognition for governmental fund types is limited to exclude amounts represented by non-current liabilities. Since they do not effect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead re- ported as liabilities in the General Long-Term Debt Account Group. -. All proprietary funds and nonexpendable trust and pension trust funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements pre- sent increases (revenues) and decreases (expenses) in net total assets. Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an expense against their operations. Accumulated depre~ ciation is reported on proprietary fund balance sheets. Depreciation has been provided over the estimated useful lives using the straight line method. The estimated useful lives are as follows: Utility System Buildings & Improvements Equipment 20 - 40 years 20 years 5 - 10 years . -13- ".