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r <br />t « <br />* <br />Ik.' <br />CITY OF ORONO, MINNESOTA <br />Notes to Financial Statements (continued) <br />December 31, 1996 <br />NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) <br />J. Liability for Compensated Absences <br />Vacation and sick leave expected to be liquidated with expendable available fuiancial resources is icported <br />as an expenditure and a ftuid liability of the governmental fund type that will pay it. The remaining portion <br />of such obligations is recorded in the General Long-Term Debt Account Group. The unused vacation of <br />the Proprietary Funds is included in accrued liabilities of the respective fund. <br />K. Bond Discounts/Issuance Costs <br />In the governmental fund types, bond discounts and issuance costs are recognized in the current period. <br />Bond discounts and issuance costs in the Enterprise Funds are deferred and amortized over the term of the <br />bonds using the bonds outstanding method which approximates the effective interest rate method. <br />L. Budgets and Budgetary Accounting <br />Each Fall, after holding a meeting to obtain public comments, the City Council legally adopts the General <br />Fund and all of the Special Revenue Funds’ ./Udgets for the following fiscal year beginning January 1. <br />These budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). <br />The City has established budgetary control at the department level. City management must request Council <br />approval before exceeding the budget at that level. City management may transfer appropriations within <br />the department level without Council approval. Appropriations lapse at year-end; however, the Council <br />may approve the carryover of specific amounts. <br />Budget amounts are presented on a modified accrual basis of accounting and include several amendments <br />adopted by the City Council during the year. Encumbrance accounting is not used. <br />During the year, the City made significant budget amendments to the General Fund appropriations and the <br />Special Revenue Funds’ revenue and appropriations as reflected in the following tables: <br />Net <br />Adopted Budget Amended <br />Budget Amendment Budget <br />General Fund Expenditures <br />Administration $ 185,715 $3,500 $ 189,215 <br />Assessing 76,160 840 77,000 <br />Finance 147,930 1,100 149,030 <br />Fire protection 197,465 1,260 198.725 <br />Engineering 15,130 915 16,045 <br />Special services - consulting/police 41,850 4,650 46,500 <br />Contingency 78,670 237,735 <br />316,405 <br />Operating transfer out 97.500 100,000 197,500 <br />Net amendments S 350,000 <br />-32- <br />» ' ' <br />I I <br />t < <br />* • <br />I <br />•N <br />I <br />. 4 <br />■i