2004-04-28 WS & CC Meeting - Laserfiche WebLink

Home Browse Search

CITY OF CENTERVll.LE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2003 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED D. Assets, LiablUlles, and Net Assets or Equity Deposits and Investments The City's cash and cash equivalents are considered to be cash on band, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Minnesota Slatutes authorize the City to invest in obligations of the U.S. Treasury, commercial paper, COIpOIate bonds, repurchase agreements and shares of investment companies regislereci under the Federal Investment Company Act of 1940 and whose only investments are obligations guaranteed by the United States or its agencies. Investments for the City are reported at filir value. Earnings on investments are allocated to the individual funds based upon the average of month-<:nd cash and investment balances. The Minnesota Municipal Money Market Fund (4M) investment pool operates in accordance with sppropriate state laws and regulations. The reported value of the pool is the same as the filir value of the pool share. Accounts Receivable Accounts receivable include amounts billed for services provided before year end. UnbiUed utility enterprise fund receivables are also included for services provided in 2003. 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. Inlerfund Receivables and Payables Tl'aI1Sactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "interfund receivableslpayables" (i.e, the current portion of interfund loans) or "advances toIfrom other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due toIfrom other funds." Advances between funds are offset by a fund balance reserve account in spplicable governmental funds to indicate they are not available for appropriation and are not expendable available financial resources. Property Taxes The 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 I 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. Taxes payable on homestead property, as defined by Minnesota statutes, were partially reduced by a market value credit aid The credit is paid to the City by the State of Minnesota in lieu of taxes levied against the homestead property. The State remits 1his credit in two equal insta1hnents in October and December each year Delinquent taxes receivable inc1nde 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 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 reoognized as revenue when they are received in cash or within 60 days after year end All special assessments receivable are offset by a deferred revenue liability in the governmental funds.