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CITY OF ROSEVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTIN�ED) DELEMBER 31, 1989 Note 1 Summary of Siqnificant Accountinq Policies (Continued) E. Budgets and Budgetary Accounting The City adopts an a�nuaL budget for the Generat and Special Revenue funds which are prepared on the � modified accrual 6asis of accounting. The adopted budget indicates the amount that can be expended by each fund based on detaiLed hudget estimates for individuaL expenditure accounts. Alt budget revisions, at the fund Level, must he authorized 6y the City CounciL at tfie request of the City Manager. 7he Council, under Minnesota State Statutes Section 412.737 can modify or amend the budget if unappropriated funds are available. Budget modification was necessary in 1989. The generat fund was amended by the amount of � 5111,500. ALL suppLementaL appropriaiions were financed either 6y transfers from ihe Contingency Section of the GeneraL Fund budget or by revenues received in excess of the 6udgeted amounts. ALL budget amounts lapse at the end of the year to the extent they have not been expended. The Level which expenditures may not Legatly exceed aPPropriations is at the fund tevel. F. Assets, Liabilities and fund Equity Investments - Investments are carried at cost, which approximates market. (See note 4 for discLosures relating.to cash management and investments.) Property Taxes - Property tax Levies are set by the City Council in October each year and are certified to the County for cotlection the follouing year. In Minnesota, counties act as coLtection agents for att property taxes. The County spreads the Levies over aLL taxable proPerty in the City. Such taxes become receivables of the City as of January 1. Property taxes are paya6Le in equaL installments 6y property ou�ers to the County as foLtous: 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 hefore January 20, April 19, JuLy 5, and Decem6er 4. �� Property tax revenue is recorded when it 6ecomes measurable and availa6le. Taxes due from Ramsey County on Decemher 31, 1989, are incWded in 1989 revenue. . . Unpaid taxes af �ecem6er 31 become liens on the respective property and are classified in the financiat �� staiements as detinquent taxes receivable. 7he receiva6le is fully offsei 6y deferred revenue as it is � not available to finance current expenditures: Cities in Minnesota operate under a levy Limitation Lau uhich aLLows an increase in the tax Levy each year in accordance with state statutory provisions. That increase has been 3ti for 1989. The percentage in[rease is further indexed 6Y the percentage increase in households or popuLation, whichever is greater. Levies for bonded indebtedness are not Limited 6y the Law. 32