2013 FINANCIAL STATEMENT - Laserfiche WebLink

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CITY OF GEM LAKE, MINNESOTA, NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER $1, 2013 { NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Cash and Investments (Continued) The. City provides. temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as interfund receivables in the advancing fund in the governmental fund financial statements, and an interfund payable 1 in the fund with the. deficit, until adequate resources are received. These interfund. payables are eliminated for statement of net position presentation. investments are stated at fair value as of the balance sheet date. Interest earnings are accrued at the balance..sheet.date. For purposes of the statement of cash flows the Proprietary Fund considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the proprietary fund types have original maturities of 90 days or less. Therefore, the entire balance in such fund types is considered cash equivalents. F. Prepaid Expenses Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepayments. Prepaid items are reported using the consumption. method and recorded as an expense or expenditure at the time of consumption. That portion of the relevant funds' balances equal to material prepaid 4tems has been segregated as nonspendable. G.. Property Tax Credits Property taxes on homestead property (as defined by state statutes) are partially reduced. by property tax credits. These credits are paid to the City by the. state in lieu of taxes levied against homestead property. The state remits these credits through. installments each year.. These credits are recognized as revenue by the City at the time of collection. H. Property Tax Revenue Recognition The City Council. annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year, Personal property taxes are payable by taxpayers on. February 28 and. June 30 of each year. These taxes are collected by. the. County and remitted to the City on or before : July 15 and December 1.5 of the .same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority.. (19)