2015-04-22 CC Packet - Laserfiche WebLink

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CITY OF CENTERVILLE,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2014 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-CONTINUED Accounts receivable Accounts receivable include amounts billed for services provided before year end.Unbilled utility enterprise fund receivables are also included for services provided in 2014.The City annually certifies delinquent water and sewer accounts to the County for collection in the following year. Therefore,there has been no allowance for doubtful accounts established. Interfund receivables and payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either"due to/from other funds"(i.e.,the current portion of interfund loans)or"advances to/from other funds"(i.e.,the non-current portion of interfund loans).All other outstanding balances between funds are reported as"due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as"internal balances." Property taxes The City Council annually adopts a tax levy in December and certifies it to the County for collection in the following year.The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable property within the City on January 1 and are payable by the property owners in two installments. The taxes are collected by the County Auditor and tax settlements are made to the City during January,July and December each year. Delinquent taxes receivable include the past six years'uncollected taxes.Delinquent taxes have been offset by a deferred inflow of resources for delinquent taxes not received within 60 days after year end in the fund financial statements. Special assessments Special assessments represent the financing 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 assessments receivable are offset by a deferred inflow of resources in the fund financial statements. Inventories All inventories are valued at cost using the first-in/first-out(FIFO)method.Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Prepaid items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. -50-