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<br />[' <br />I <br />, <br /> <br />r. <br /> <br />rr <br />, , <br />(1 <br /> <br />[ [ <br /> <br />r~ <br />L <br /> <br />rr <br />1\ <br /> <br />rJ <br /> <br />rr <br />u <br /> <br />II <br />L <br />L~ <br /> <br />[] <br /> <br />u <br /> <br />I! <br /> <br />r I <br />t 1 <br /> <br />r' <br /> <br />i' <br />I <br />Ii <br /> <br />. <br /> <br />CITY OF ARDEN HILLS, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31, 2004 <br /> <br />Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINlJED <br /> <br />D. Assets, Liabilities and Net Assets or Equity <br /> <br />Deposits and Investments <br /> <br />The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments <br />with original maturities of three months or less from the date ofacqnisition. <br /> <br />Cash balances from all fimds are pooled and invested, to the extent available, in certificates of deposit and other <br />authorized investments. Earnings from sucb investments are allocated on the basis of applicable participation by <br />each of the fimds. <br /> <br />Minnesota statutes authorize the City to invest in obligations of the U.S, Treasury, commercial paper, corporate <br />bonds) repurchase agreements, and shares of investment companies registered under the Federal Investment <br />Company Act of 1940 and whose only investments are obligations guaranteed by the United States or its agencies. <br /> <br />Investments for the City are reported at fair value. The 4M Fund and broker money market accounts operate in <br />accordance with appropriate state laws and regulations. The reported values of the pools are the same as the fair <br />value of the pool shares. <br /> <br />Property Taxes <br /> <br />The Council annually adopts a tax levy and certifies it to the County in December for collection the following year. <br />The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on <br />taxable property within the City on January I and are payable by the property owners in two installments. The taxes <br />are collected by the County Treasurer and tax settlements are made to the City during January, July and December <br />each year. <br /> <br />Taxes payable on homestead property, as defmed by Minnesota statutes, are partially reduced by a market value <br />credit aid. The credit is paid to the City by the State of Minnesota (the State) in lieu of taxes levied against the <br />homestead property, The State remits this credit in two equal installments in October and December each year. <br /> <br />Delinquent taxes receivable include the past six yearsl uncollected taxes. Delinquent taxes have been offset by a <br />deferred revenue liability for delinquent taxes not received within 60 days after year end in the fimd statements, <br /> <br />Accounts Receivable <br /> <br />Accounts receivable include amounts billed for services provided before year end, Unbilled utility enterprise fimd <br />receivables are also included for services provided in 2004. The City annually certifies delinquent water and sewer <br />accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful <br />accounts established. <br /> <br />Special Assessments <br /> <br />Special assessments represent the fmancing for public improvements paid for by benefiting property owners. These <br />assessments are recorded as receivables upon certification to the County. Special assessments are recognized as <br />revenue when they are annually certified to the County or received in cash or within 60 days after year end. All <br />governmental special assessments receivable are offset by a deferred revenue liability in the fund financial <br />statements. <br /> <br />.2]- <br />