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CITY OF SOUTH BEND <br />NOTES TO FINANCIAL STATEMENTS <br />(Continued) <br />3. Property Taxes <br />Property taxes levied are collected by the County Treasurer and are usually distributed to the <br />primary government in June and in December. State statutes (IC 6- 1.1- 17 -16) require the Indiana <br />Department of Local Government Finance to establish property tax rates and levies by February <br />15. These rates were based upon the preceding year's March 1 (lien date) assessed valuations <br />adjusted for various tax credits. Taxable property is assessed at 100% of the true tax value <br />(determined in accordance with rules and regulations adopted by the Indiana Department of Local <br />Government Finance). Taxes may be paid in two equal installments that become delinquent if not <br />paid by May 10 and November 10, respectively. All property taxes collected by the County Treas- <br />urer and available for distribution were distributed to the primary government prior to December <br />31. Delinquent property taxes outstanding at year end for governmental and/or proprietary funds, <br />net of allowances for uncollectible accounts, are recorded as a receivable with an offset to <br />unearned revenue since the amounts are not considered available. <br />4. Inventories and Prepaid Items <br />All inventories are valued at cost using the first in /first out (FIFO) method. Inventories of gov- <br />ernmental funds are recorded as expenditures when consumed rather than when purchased. <br />Certain payments to vendors reflect costs applicable to future accounting periods and are re- <br />corded as prepaid items in both government -wide and fund financial statements. <br />5. Restricted Assets <br />Certain proceeds of the enterprise fund revenue bonds, as well as certain resources set aside for <br />their repayment, are classified as restricted assets on the statement of net assets balance sheet <br />because their use is limited by applicable bond covenants. <br />6. Capital Assets <br />Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, <br />bridges, sidewalks and similar items), are reported in the applicable governmental or business - <br />type activities column in the government -wide financial statements. <br />Capital assets are reported at actual or estimated historical cost based on appraisals or deflated <br />current replacement cost. Contributed or donated assets are reported at estimated fair value at <br />the time received. <br />Capitalization thresholds (the dollar values above which asset acquisitions are added to the capi- <br />tal asset accounts), depreciation methods and estimated useful lives of capital assets reported in <br />the government -wide statements and proprietary funds are as follows: <br />Capitalization Depreciation Estimated <br />Threshold Method Useful Life <br />Buildings and improvements $ <br />Equipment <br />Roads — collectors and residential <br />Water collection systems <br />Wastewater distribution and <br />collection systems <br />32 <br />50,000 <br />Straight -line <br />20 to 30 years <br />5,000 <br />Straight -line <br />5 to 20 years <br />3,000,000 <br />Straight -line <br />40 to 50 years <br />500 <br />Straight -line <br />6 to 100 years <br />1,000 Straight -line 6 to 100 years <br />