12-07-2020 Council Packet - Laserfiche WebLink

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City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 1: Summary of Significant Accounting Policies (Continued) The City participates in various pension plans, total pension expense for the year ended December 31, 2019 is as follows: Total All GERF PEPFF Plans Pension Expense 185,356$ 991,921$ 1,177,277$ Association of Minnesota (PERA) Public Employees Retirement Deferred Inflows of Resources In addition to liabilities, the statement of net position and fund financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has two types of items, which arise only under a modified accrual basis of accounting that qualifies as needing to be reported in this category. Accordingly, one of the items, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: property taxes, special assessments and intergovernmental. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Furthermore, the City has additional items which qualify for reporting in this category on the statement of net position. The items, deferred pension resources and deferred other postemployment benefit resources, are reported only in the statement of net position and results from actuarial calculations involving net differences between projected and actual earnings on plan investments and changes in proportions. Net Position Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources. Net position is displayed in three components: a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. a. Restricted net position - Consists of net position balances restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. b. Unrestricted net position - All other net position balances that do not meet the definition of “restricted” or “net investment in capital assets”. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. Furthermore, the City has additional items which qualify for reporting in this category on the statement of net Furthermore, the City has additional items which qualify for reporting in this category on the statement of net The items, deferred pension resources and deferred other postemployment benefit resources, are reported only in theThe items, deferred pension resources and deferred other postemployment benefit resources, are reported only in the statement of net position and results from actuarial calculations involving net differences between projected and actualstatement of net position and results from actuarial calculations involving net differences between projected and actual on plan investments and changes in proportions.on plan investments and changes in proportions. represents the difference between assetsrepresents the difference between assets and deferred outflows of resourcesand deferred outflows of resources and liabilitiesand liabilities inflows of resources. Net position is displayed in three components:inflows of resources. Net position is displayed in three components: 66