CCP 06-08-1998 - Laserfiche WebLink

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I CITY OF ARDEN HILLS, MINNESOTA I NOTES TO FINANCIAL STATEMENTS DECEMBER 3 I, 1997 . Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED I Compensated Absences Employees with at least ten years of service are entitled to receive one-third of their unused sick leave up to a I maximum of 800 hours upon termination in addition to any unused vacation and compensatory time. The accrual of these benefits is recorded as a liability in the enterprise funds and expensed, The liability for the I governmental funds is recorded in the generallong-terrn debt account group and recorded as an expenditures when paid, Long-term Obligations I The City reports long-term debt of goverumental funds at face value in the general long-term debt account group, Long-term debt and other obligations financed by proprietary funds are reported as liabilities in the appropriate funds. I For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reponed as an other financing source net of the applicable premium or discount. Issuance costs, other than those withheld from the actual net proceeds received, are reported as debt I service expenditures. For proprietary fund types) bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Discounts and issuance costs are reported as deferred charges. I Fund Equity Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a specific I . purpose. Reservations of retained earuings are limited to outside third-party restrictions. Designations of fund balance represent tentative management plans that are subject to change. The proprietary fund's contributed capital represents equity acquired through capital grants and capital contributions from developers, customers or other funds. I Memorandum Only - Total Columns I Total columns on the general purpose fmancial statements are captioned as "memorandum only" because they do not represent consolidated fInancial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position, results of operations or cash flows in accordance with generally accepted accounting principles. Interfund eliminations have not been made in the I aggregation oftbis data. Comparative DatalReclassifications I Comparative total data for the prior year have been presented in the selected sections of the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. I The City has implemented GASB 32 during 1997. This change resulted from amendments made to Interual Revenue Code (IRe) Section 457 that stated under certain criteria the IRC 457 plan assets were no longer owned by the City. The effect of the restatement was to eliminate the 1997 and 1996 balances of the Deferred I Compensation Agency Fund from the general purpose financial statements. Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY I A. Budgetary Information . Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all the I goverumental funds except the capital projects funds, which adopt project length budgets. All annual appropriations lapse at fiscal year end. . -13-