Laserfiche WebLink
CITY OF SOUTH BEND <br />NOTES TO FINANCIAL STATEMENTS <br />(Continued) <br />For depreciated assets, the cost of normal maintenance and repairs that do not add to the value <br />of the asset or materially extend asset lives are not capitalized. <br />Major outlays for capital assets and improvements are capitalized as projects are constructed. <br />Interest incurred during the construction phase of capital assets of business-type activities is <br />included as part of the capitalized value of the assets constructed. <br />7. Compensated Absences <br />a. Sick Leave -primary government employees eam sick leave at the rate oftwo-thirds day for <br />each completed month of service. Sick leave may accumulate to a maximum of 90 days for <br />policemen, 100 days for firemen, 60 days for teamsters, and 65 days for all other employees. <br />Accumulated sick leave is paid to firemen, to policemen, and to teamsters, upon termination <br />of employment, at one-half their current pay rate, at a rate of one-half the corporal's rate of <br />pay up to a maximum of 60 days, and $25 for each accumulated sick leave day, respectively, <br />at the time of retirement. <br />b. Vacation Leave -primary govemment employees earn vacation leave at rates from 9 days to <br />28 days per year based upon the number of years of service, employee classification, and <br />hire date. Vacation leave does not accumulate from year to year, except in instances where <br />special cases are approved. Employees earn vacation leave during the year to be used the <br />following year. Unused vacation leave is paid to employees upon termination ofemployment. <br />c. Personal Leave -primary govemment policemen earn personal leave at the rate of 7 days <br />per year. Personal leave does not accumulate from year to year. Unused personal leave <br />may be rolled into sick leave. City employees under the teamster contact can use their sick <br />leave for personal leave. <br />d. Compensatory Leave -Policemen and firemen have accumulated overtime-compensatory <br />leave for a variety of reasons. <br />Unused vacation leave for all City employees, and unused sick leave and compensatory leave of <br />firemen, policemen and teamsters is accrued when incurred and reported as a liability in the <br />Statement of Net Assets. Amounts due and payable at year end are included in the proprietary <br />fund statements. No liability is recognized in the governmental fund statements. <br />8. Long-Term Obligations <br />In the government-wide financial statements and proprietary fund types in the fund financial <br />statements, long-term debt and other long-term obligations are reported as liabilities in the applic- <br />able governmental activities, business-type activities or proprietary fund type statement of net <br />assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized <br />over the life of the bonds using the straight-line method. Bonds payable are reported net of the <br />applicable bond premium or discount. Debt issuance costs are reported as deferred charges and <br />amortized over the term of the related debt. <br />In the fund financial statements, governmental fund types recognize bond premiums and dis- <br />counts, as well as bond issuance costs, during the current period. The face amount of debt <br />issued is reported as other financing sources. Premiums received on debt issuance are reported <br />as other financing sources while discounts on debt issuances are reported as other financing <br />uses. lssuance costs, whether or not withheld from actual debt proceeds received, are reported <br />as debt service expenditures. <br />51 <br />