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CITY OP ROSEVILTE, MINNESOTA NOTES TO THE PINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1981 Note 1- Summary of Si.gnificant Accounting Policizs (Continued) Basis of Accounting (Continued) General Long-term Debt - The general long-term liabilities, except for Enterprise and Special Assessment funds, are not carried as a liability of a fund, but rather are set up in a separate seli-balancing group of accounts known as the "general long-term debt group of accounts"�. � �'� Bud�et�--:-The City adopts an annual budget for the General and Special Revenue Funds �,�'-'..which are prepared on the modified accrual basis of accounting. The adopted budget indicates�the amount that can be expended by each department and each fund based on detailed budget estimates for individual expenditure accounts. Al1 budget revisions must be authorized by the City Council at the request of the City Manager. Al1 supplemental appropriations for 1981 were financed by transfers from the Contingency Section of the General Fund. All budget amounts lapse at the end of the year to the extent they have not been expended or encumbered. � � Reserve for Encumbrance - Encumbrances are reported�for governmental type funds � and are not thz equivalent of expenditures. Encumbrances�are shown�as�part of � fund--ba-lance. They are recorded as reservation of fund balances until expended or accrued as a liability of the fund. Vacation, Sick Leave and Compensatory Time Off - Accrued liabilities for unased �L^. vacation, sick leave and compensatory time off to which empl.oyees are entitled .�s' not reflected in the financial statements of the individual funds. ___ ...... .. . _ .. . .. .... ... . ._. .. The City canpensates employees upon terminatioa for unused vacation. The City has an accumulated liability as of December 31, 1981 for earned but unused vacation of approximately $167,000 which wi11 Ue paid when used or termination occurs. City employees are entitled to accrue sick leave for 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 December 31, 1981, was approximately $616,000 which would be paid only in the event sickness occurs or upon retirement, City employees who are entitled to accrued compensatory time off up to�a maximum of forty hours per employee willonly be paid when this time is used or termination occurs. Total compensatory time off accrued at December 31, 1981 was approximately $10,600. Note 2 - Property Taxes The property tax levy for 1951 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 the County which bills and collects the tax in two installments due on May 31, 1981 and October 31, 1981, and remits to the City its share of the collections. Amounts collected by the County in November and December were less than 1% of the total tax levy and are set up as� taxes receivable at year end with remittance being made early in the foll.owing year. Penalties for late payment of taxes are added on the first Monday in January of the folloc�i.ng year. 33