Annual_Report_1980_001 - Laserfiche WebLink

Home

CITY OF ROSEVILLE, MI�NESOTA NOTES TO THE FINANCIAL STATEN�NTS (CONTINUED) llLCEP�IBER 31, 1900 Note 1-Summarv of Significant Accounting Policies (Continued) <>" t- The property tax levy for 1981 was adopted by the City Council before October 10, 1980 as required by State statute. The City resolution adopting the tax levy was certified to Ramsey County which bi11s and collects the property tax and remits to the Cit}� its share of the collections. Reserve for Encumbrance - Encumbrances are reported for governmental type funds and are not the equivalent of expenditures. Encumbrances are shown as part of fund balance. They are recorded as reservation of fund balances until expended or accrued as a Liability of the fund. Vacation and Sick Pay - The��City compensates a11 employees upon termination for ueused vacation. The City has an accumulated liability as oi December 31, 1980 for earned but unused vacation of approximately $144,000 which wi11 be paid when used or termi- nation occurs. � City employees are entitled to accrue sick ieave ior each calendar month of full- time service. Employees are not compensated for unused sick leave upon termination of employment, except upon retirement, at which time employees are entitled to one half of their accumulated leave up to one month's pay. The total unused sick leave at Decemher 3?, 19�0, was appox_i_mately $54?,000, whi.ch �� would be paid only in the eveat sickness occurs or upon retirement. f ' Note 2 - ChanQe of Acc ountin Method � '� ' "' ' � - -��: ''�� g _ — .... .( , In 1980, the City changed its method of reporting revenue in the State-aid Street Construction Fund by reflecting revenue as earned in the year funds are approved to be paid by the State instead of the year of allocaticn. The efiect of this change for 1980 is to increase revenue by $329,863 from what it would have been if the former method had been continued and the fund balance at January 1, 1980 was reduced by $519,677 to $107,649. Note 3 - Sonded Debt The City has three types of bonded debt outstanding ac Decembc. �1, 193D. They are (1) General Obligation Bonds, (2) General Obligation Improvement (Special Assessment) Bonds and (3) GoLf Course General 061igation Revenue Bonds and Ice Arena General 061igation Bonds. The first type of bonds are payable solely from general property taxes. The second and third type are payable primarily from special assessments and revenue, and bv general property taxes. A11 bonded debt is backed by fu11 faith and credit of the City. A11 bonded debt o�tstanding as of December 31, 1980, including interest payments of $5,206,548 on bonds carrying interest rates of 3.60% to 7.63% is as follows: 31