CCP 05-22-2006 - Laserfiche WebLink

Home Browse Search

CITY OF ARDEN IillLS, MlNl\,'ESOT A NOTES TO THE FINANCIAL STATEMENTS DECEMBER 3 J,-2Jl Note 1: :':::::::::NmCANT Mem"nNG 'OU'llESn, ,~R A ~ T The CIty of Arden Hills, Minnesota (the CIty), operates def'fti Opfinna(Wm!~overnment a ,defIned in the State of Minnesota statutes_ Under this plan, the g:vernment of the City is directed by a Council confoscd of an elected Mayor and four elected Council members_ Th~""",,~th(}Iily~es all matters of pollcy_ The Council appoints personnel responsible for the proper administration of all affairs relating to the City, The City has considered all potential units for which it is financially accountable, and other organizations for which the nature and significance of thell- relationship l,\ritb the CIty afe such that exclusion would cause the City's fIrumcial statements to be misleading or incomplete, The Governmental Accounting Standards Board (GASB) has set forth criteria to be considered in determining financial accOlll1tability. These criteria include appointing a voting majority of an organization's governing body, and (1) the ability of the primary government to impose its will on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific fInancial burdens on the primary goverm11cnt. . Blended component units, although legally separate entities, arc) in substance, part of the City's operations and so data from these units are combined with data of the City. The blended component unit has a December 31 year end. The City has the following component unit Blended Component Unit The Economic Development Authority (EDA) ofthe City was created pursuant to Minnesota statutes 469_090 through 469.108 to carry out economic and industrial development and redevelopment consistent with policies established by the Council, It is comprised of the members of the City Council. The EDA activities are blended and reported in a separate special revenue fund. Separate financial statements are not issued for this component unit. B. Government-wide and Fund Financial Statements- . The government-wide [mancial statements (i.e., the statement of net assets and tbe statement of changes in net assets) report infODYi3tlon cn all of the nonfiduciary activities oft'h,e City Oind ~ts corrrponent unit. For the most part, tbe effect of interfund activlty has been removed from these statements_ Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the City is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues_ Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) cbarges to customers or applicants wbo pUTchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other item,> not properly included among program revenues are reported instead as general revenues. Separate fmandal statements are provided for governmental funds and proprietaIy funds. Major individual governmental funds and major individual enterprise funds are reported as separate cohmms in the fund [mandaI statements. . -23-