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CITY OF ROSEVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1984 Note 1- Summary of SiRnificant Accountin� Policies (Continued) E. Assets, Liabilities and Fund Equity (Continued) ' Property taxes are payable in equal installments by property owners to the County as follows: Personal property - February 28 and June 30 Real property - May 15 and October 15 The County remits the collections to the City and other taxing districts four times a year, on or before February 21, April 19, July 5, and December 4. Property tax revenue is recorded when it becomes measurable and available. Taxes due from Ramsey County on December 31, 1984, are included in 1984 revenue, as they are received by the City within 60 days of year end. Unpaid taxes at December 31 become liens on the respective property and are classified in the financial statements as delinquent taxes receivable. The receivable is fully offset by deferred revenue as they are not available to finance current expenditures. Cities in Minnesota operate under a levy limitation law which allows an increase in the tax levy each year equal to the Implicit Price Deflator increase or 5%, whichever is greater, further indexed by the percentage increase in households or population, whichever is greater. Levies for bonded indebtedness are not limited by the law. Taxes payable on homestead property (as defined by State statutes) are partially reduced by a homestead credit. This credit is paid to the City by the State in lieu of taxes levied against homestead property. The State remits this credit in six equal installments in Suly through December each year. Special Assessments - Special assessments are levied against the benefited properties for the assessable costs of special assessment improvement projects in accordance with State statutes. The City usually adopts the assessment rolls when the individual projects are complete or substantially complete. The assessments are collectible over a term of years generally consistent with the term of years of the related bond issue. Collection of annual installments (including interest) is handled by the County in the same manner as property taxes. Property owners are allowed to prepay total future installments without interest or prepayment penalties. Special assessment revenues are recognized when they become both measurable and available. In practice, special assessment principal and interest is recognized as revenue in the year when assessments are collected. Principal amounts of special assessments not yet due for collection are shown as deferred special assessments on the balance sheet. Inventories - Inventories held by the Enterprise funds are stated at the lower of cost or market, using the first-in, first-out method. The only other items of inventory would be a small quantity o£ supplies which are expensed when purchased. zn