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

Home Browse Search

CITY OF CENTERVlLLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2003 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Long-term Obligations In the government-wide financial slatements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, bnsiness- type activities, Gt proprietary fund type statement of net assets. Beginning January 1, 2003, beIDd ptemiums and disc<>unts, as well as issWlIlCC costs, are deferred and amortized over the life Gf the bonds nsing the straight line meth<>d Bond iSSWlIlCC costs are reported as deferred charges and amortized Gver the term of the related debt. In the fund financial statements, governmental fund types recognized bond premiums and disc<>unts, as well as bond issuance costs, during the current period. The face amount of debt issned is reported as Gther financing sources. Premiums received Gn debt issuances ate reported as other financing sources while disc<>unts on debt issuances are rep<>rted as other financing nses. Issuance costs, whether Gr not witbheld from the actual debt proceeds received, are rep<>rted as debt service expenditures. Fund Equity In the fund financial statements, governmental funds rep<>rr reservations of fund balance for amounts that ate not available for appropria1iGn Gr are legally restricted by ontside patties for nse for a specific pmpose. Designations of fund balance represent tentative management plans that are snbject to change. Comparative Data/Redasslfications Compatative total data for the prior year have been presented Gnly fur individual enteIprise funds in the fund financial statements in order to provide an understanding Gf the changes in the financial positiGn and operations of these funds. Also, certain amounts presented in the priGr year data bave been reclassified in Grder to be coGSis1ent with the current year's presentation. NGte 2: STEW ARDSlIIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information Annual budgets ate adopted on a basis cOGSistent with accountiog principles generally accepted in the United States Gf America for the general fund. All annual appropristioGS lapse at fiscal yellt end. The City does not nse encumbrance accounting. In August of each yeat, all departments of the City submit requests for appropriations to the City Administrator so that a budget may be prepared. BefGre September 15, the proposed budget is presented to the Council for review. The Council holds pnblic hearings and a fina1 budget is prepared and adopted in early December. The appropriated budget is prepared by fund, functiGn and department. The City's department heads, with the approval Gfthe City Administrator, may make lraGSfers of appropria1iGus within a department Transfers of appropriations between departments require the approval of the Council The legal level of budgetary control is the department level. Budgeted amounts are as originally adopted, or as amended by the Council. There were no budget amendments made during the year. .