CCP 05-24-1999 - Laserfiche WebLink

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I I. Note 1: I I I I I I I I. I I I I Note 2: I I I I. I CITY OF ARDEN HILLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Compensated Absences Employees with at least ten years of service are entitled to receive one-third of their unused sick leave up to a 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 governmental funds is recorded in the general long-term debt account group and recorded as an expenditure when paid. Long-term Obligations The City reports long-term debt of governmental funds at face value in the general long-term deht account group. Long-term debt and other obligations fmanced by proprietary funds are reported as liabilities in the appropriate funds. For governmental fund types, oond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as another fmancing source net of the applicable premium or discount. Issuance costs, other than those withheld from the actual net proceeds received, are reported as debt service expenditures. For proprietary fund types, bond discounts are deferred and amortized over the life of the bonds using the straight-line method. Discounts are reported as deferred charges. Fund Equity Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a specific purpose. Reservations of retained earnings 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. Memorandum Only - Total Columns Total columns on the general purpose fmancial statements are captioned as "memorandum only" because they do not represent consolidated flflancial information and are presented only to facilitate financial analysis. The colunms do not present information that reflects fmancial position, results of operations or cash flows in accordance with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. Comparative DatalReclassifications 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 fmancial 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. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all the general and special revenue funds. The capital projects funds adopt project length budgets. All annual appropriations lapse at fiscal year end. -14-