Laserfiche WebLink
CITY OF SOUTH BEND <br />NOTES TO FINANCIAL STATEMENTS <br />(Continued) <br />The City has not implemented retroactive reporting of its infrastructure as of December 31, 2005. <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 earn sick leave at the rate of two- thirds of a day <br />for each completed month of service. Sick leave may accumulate to a maximum of 90 days <br />for policemen, 100 days for firemen, 60 days for teamsters, and 65 days for all other <br />employees. Accumulated sick leave is paid to firemen, to policemen, and to teamsters, upon <br />termination of employment, at one -half their current pay rate, at a rate of one -half the <br />corporal's rate of pay up to a maximum of 60 days, and $25 for each accumulated sick leave <br />day, respectively, at the time of retirement. <br />b. Vacation Leave — primary government 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 of employment. <br />c. Personal Leave — primary government 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. D.R.O.P. Payable <br />Pursuant to Indiana Statute, certain City policemen and firemen are eligible for the deferred retire- <br />ment option plan (D.R.O.P ). Active policemen and firemen who are eligible to retire before <br />December 31, 2007, can declare their retirement date and then receive a lump sum at retirement <br />based on pension factors. The lump sum amounts, for those who have declared, are recognized <br />as D. R.O. P. payable. The liability is recognized net of a 50% reduction which is the minimum that <br />the State will reimburse in the following year. <br />9. Long -Term Obligations <br />In the government-wide financial statements and proprietary fund types in the fund financial state- <br />ments, long -term debt and other long -term obligations are reported as liabilities in the applicable <br />governmental activities, business -type activities or proprietary fund type statement of net assets. <br />33 <br />