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CITY OF ROSEVILLE. MINNESOTA NOTES TO FINANClAL STATEMENTS (CONTINUED) DECEM9ER 31. 1988 No[e 1- Summarv of 59qniticant Accountinq Policies (Continued) Proprietary Funds are accounted for using the accrual basis of accounting. Revenues are remgnized uhen they are earned, and expenses are recognized whe❑ they are incurred. Unbilted utility service receivahLes are recorded at year end. E. Budgets and eudgetary Accounting The City adopts an annual budget for the Generat and Speciat Revenue funds which are prepared on the modifiied accruaL 6asis of accounting. The adopted 6udget 5ndicates the amount that can 6e expended by each fiund 6ased on detaiLed budget estimates tor individuaL expenditure accounts. All budget revisions, at the fund Level, must be auihorized hy ihe City CountiL at the request of the City Manager. The CounciL, under Minnesota State Statutes Section 412.731 can modify or amend the budget if unappropriated funds are available. Budget modification was necessary in 1988. The general fund was amended 6y the amount of 8174,481 and the Specia� revenue fund was amended in the amount of 899,697. ALL supptementaL appropriations were financed either 6y transfers from the Contingency Section of the General Fund 6udget or 6y revenues received in excess of the budgeted amounts. Alt budget amounts Lapse at the end of the year to the extent they have not 6een expended. The Level which expenditures may not LegaLLy exceed appropriations is at the fund Leve�. F. Assets, Liabilities and Fund Equity Investments - Investments are carried at cost, uhich approximates market. (See note 5 for disclosures reLating to cash management and investments.) Property Taxes - Property tax Levies are set by the City Councit in October each year and are certified to the County for cottection the fottouing year. In Minnesota, counties act as collection agents for atl property taxes. The County spreads the Levies over atL taxable property in the City. Such taxes 6ecome receivabtes of the City as of January 1. Property taxes are payable in equaL instaLLments 6y property owners to the County as follows: Personat property - Fe6ruary 28 and June 30 ReaL property - May 15 and October �5 The County remits the collections [o the City and ather taxing districts fiour times a year, on or 6efore January 20, ApriL 19, Juty 5, and Decem6er 4. Property tax revenue is recorded when it becomes measurable and available. Taxes due from Ramsey County on Decemher 31, 1988, are inctuded in 1988 revenue. Unpaid taxes at Decem6er 31 become liens on the respective property and are classified in the financial statements as delinquent taxes receivahle. The receivable is futLy offset by deferred revenue as it is not avaiLa6Le to finance current expenditures. Cities in Minnesota operaie under a tevy timitation law which atlows an increase in the tax tevy each year equal to the Impticit Price Deflator increase or 4%, whichever is greater, further indexed by the 31