07-10-1995 Council Packet - Laserfiche WebLink

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I I I I 1 I I I I I I I I I I I I I CITY OF ORONO. MINNESOTA Notes to Financial Statements (continued) December 31, 1994 NOTE 1 - SIGNinCANT ACCOUNTING POLICIES (CONTINUED) The county spreads all levies over taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City on that date. Revenue is accrued and recognized in the year collectible. Taxes which remain unpaid at December 31 are classified as delinquent taxes receivable. Revenue from property taxes which is not collected within 60 days of year-end is deferred since it is not available to meet obligations of the current year. Property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. The county provides tax settlements to cities and other taxing districts several times a year. G.Special Assessments Special assessments represent the financing for public improvements paid for by benefming property owners. These assessments are recorded as receivables upon certification to the county. The corresponding revenue from the delinquent (unremitted) and deferred (cenified but not yet levied) .special assessments receivable is deferred until the year in which it becomes available (cc'llected within 60 days of year-end). H.Inventories Inventories are stated at the low er of cost or market on the fir.st-in. first-out basis and are acc»>unted tor using the consumption meth(Kl. I.Property, Plant, and Equipment Fixed assets are stated at cost, estimated hi.storical cost, or in the ca.se of contributions, at fair market value at the time received 1.General F'xed Assets .Account Group - No depreciation has been provided on general fixed assets. The costs of property, plant, and equipment are accounted for as current expenditures of the governmental fund types in the year purcha.sed. The City has elected not to record infrastructure fixed assets in its accounting records. 2.Proprietary Fund Type - Fixed assets of the Proprietary Funds are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Buildings and improvements Equipment Distrihution/collection svstem 25-50 years 3-20 years 10-75 years Depreciation on contributed assets charged to operations is clo.sed to the contributed equity account. I -34-