2012-04-11 CC Packet - Laserfiche WebLink

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CITY OF CENTERV I L L E, MINNESOTA NOTESTOTHE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- CONTINUED Property taxes The Counci I annual I adopts a tax l evy i n December and certifies it to the County for col lection i n the fol lowi ng year. The County is responsi ble for col Iecti ng al I property taxes for the City. These taxes attach an enforceable I ien on taxable property withi n the City on January 1 and are payable by the property owners i n two i nstal l meets. The taxes are col Iected by the County Auditor and tax settlements are made to the City duri ng January, July and December each year. Taxes payable on homestead property, as defi ned by M i nnesota statutes, were partial I reduced by a market val ue credit aid. The credit is paid to the City by the State of M i nnesota (the State) i n I ieu of taxes levied agai nst the homestead property. The State remits this credit i n two equal i nstal I meets i n October and December each year. Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a deferred revenue I i abi I i ty for del i nquent taxes not recei ved withi n 60 days after year end i n the fund f nanci al statements. Special assessments Special assessments represent the fi nanci ng for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the County. Special assessments are recognized as revenue when they are received in cash or within 60 days after year end. All governmental fund special its receivable are offset by a deferred revenue I i abi I ity i n the fund f nanci al statements. I nventories and prepaid items Al I i nventori es are val ued at cost usi ng the f rst -i n/fi rst -out (FI FO) method. I nventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certai n payments to vendors reflect costs appl icable to future accounti ng periods and are recorded as prepaid items i n both government -wide and fund financial statements. -53-