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NOTE 1— SUMMARY OF $IG IOCANT AC.COUNTINd.POLICIES (CONTINUED) <br />The City reports all investments at fair value. The. City categorizes its fair value measurements within the <br />.fair value hierarchy established by accounting principles generally aceepted. in the United States of <br />.America. The hierarchy is based on the valuatiori inputs used to measure, the fair value of the asset. <br />.Level 1 inputs are quoted prices in active markets. for identical assets; Level 2 inputs are significant other <br />:ob5eryable. inputs; artd.l.,evel 3 inputs are. signif cant unobservable inputs. <br />Debt securities Cla§sified .in Level 2 of the fair value Hierarchy are valued using a matrix pricing <br />technique. Matrix pricing is used to value securities based on the securities' relationship to benchmark <br />quoted prices. <br />See. Note. 2. for the City's. recurring fair value measurements as of .year-end. <br />-F. Receivables <br />Utility.. -and miscellaneous accounts receivable are reported at gross. Sirice the City is generally able to <br />certify delinquent amounts to the county for collection as special assessments; no allowance for <br />uncollectible accounts has been provided on current .receivables. All receivables are expected to be <br />collected within one year with:tlte exception pf deferre4 special assessments. <br />G. Property Taxes <br />Property tax levies *are- set.. by tile. City Council by Dedember of­eacb year, and are certified to <br />Ramsey County for collection in. the following year: In Minhesoto., counties actas collection agent§ for all <br />property taxes. The county spreads all levies over -Im.. ble. property. Such taxes become -a lien dri <br />January 1 and are recorded as receivables- by the. City on that date. Real property taxes may be paid by t <br />taxpayers in two. equal installments `on May 1:5 and October .15. Personal property taxes are due in full on <br />May 15. The county provides tax settlements to cities and other taxing districts three times a.year; in July, <br />December, and January. <br />Property taxes .are. recognized :as revenue in the year levied in the government -wide financial. statements, <br />In the governmental fund. financial statements, taxes, are recognized as revenue when :received in cash. or <br />within 60 days after year-end. Taxes which. remain unpad at December 31, are. classified as delinquent <br />taxes seb6ivable,-:attd are offset.-by.n deferred ififlow-of resources in the governmental fund financial <br />statements. <br />A. Special Assessments <br />'Special assesstrients represent the financing for .public improvements paid for by benefiting property <br />owners. Special assessments are: recorded. as. receivables upon certification to the county. Special <br />assessments are recognized as revenue in the year levied in .the government: -wide financial statements. In <br />the.governmental. fund. financial statements, special. assessments are recognized as revenue when received <br />in cash or within 60. ays after Year-end. Governmental fund special assessments. receivable which remain <br />unpaid on December !J, are offset by a deferred inflow of.-Mqurces. in. the governmental fund financial. <br />statements. <br />I. Prepaid Items <br />Certain payments to vendors reflect costs applicable to future accounting..periods and are recorded as <br />prepaid items in both government wide and fund financial statements. Prepaid items are reported using <br />the consumptiontnethod and recorded as expenditures/expenses at the time of consumption.. <br />=21 <br />