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.Note1: CITY OF ARDEN IDLLS, MINJ','ESOT A NOTES TO TIlE FINA1\JClAL STATEMENTS DECEMBER 31 DSUMMAR. YO> "GNUKANT ACCOON"NG ,m"i'DRINUED F T Assets, Liabilities and Net Assets or Equity 1!:~ Deposits and Investments .:'": ~ The City's cash and casb eqUIvalents are considered to b caslu>n n'ncl~ c1em",o, o,~pnSl!S aru:lshD1:1,;J:e~estments 'With original maturities of three months or less from the date of acquisition. Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earnings fTom such invesbnents are allocated on the basis of applicable participation by each of the funds. The City may also invest idle funds as authorized by Minnesota statutes, as follows: L 2. 3, 4, 5. . 6. 7. Direct obligations or obligations guaranteed by the United States or its agencies. Shares of investment companies registered under the Federal Inves.tment Company Act of 1940 and whose only investments are in securities in (a) above. General obligations of the State of Minnesota or any of its municIpalities. Banker's acceptances of Unites States banks eligible for purchase by the Federal Reserve System. Commercial paper lssued by Urnted States banks corporations or their Canadian subsidiaries, of highest quality, aud maturing in 270 days or less. Repurchase or reverse repurchase agreements with banks that are members oftbe Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer:in U.S. government securities to the Federal Reserve Bank of New Yark, or certain Minnesota securities broker-dealers. GUfuaDteed investment contracts (GIC's) iSS'Lled or guaranteed by United States co-mille-Tel:!l baNS Of domestic branches of foreign banks or United States insurance comparues if similar debt obligations of the issuer or the collateral pledged by the issuer is in the top two rating categories, or in the top three rating categories for long-term GIC's issued by Minnesota banks. Investments for the City are reported at fair value. The Minnesota Municipal Money Market fund operates in accordance with appropriate State of Minnesota (the State) laws and regulations. The reported value oftbe pool is the same as tbe fair value oftbe pool shares. Financial statements of the Minnesota Municipal Money Market fund can be obtained by contacting Voyageur Asset Management allOO South Fifth Street Suite 2300, Minneapolis, MN 55402-1240. Property Taxes The Council annually adopts a tax levy and certifies it to the County in December for collection the follo-wing year. The County is respons.ible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable property v.rithin the City on January J and are payable by the property O'WIlers in !\VO instalhnents. The taxes are collected by the County Treasurer and tax settlements are made to the City during January, July and December each year. Taxes payable on homestead property, as defmed by Minnesota statutes, are partially reduced by a market value credit aid. The credit IS paid to the City by the State in lieu oftID~es levied against the homestead property. The State remits this credit in two equal installments in October and December each year. . Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a deferred revenue liability for delinquent taxes not received within 60 days after yeaI end in the fund fmancial statements. -26-