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<br /> <br />City of Orono, Minnesota <br />Notes to the Financial Statements <br />December 31, 2022 <br /> <br />Note 1: Summary of Significant Accounting Policies (Continued) <br /> <br />The City has the following recurring fair value measurements as of December 31, 2022: <br /> <br />• Negotiable certificates of deposits, government agency securities and municipal bonds of $12,572,070 are valued <br />using a matrix pricing model (Level 2 inputs) <br /> <br />Property Taxes <br /> <br />Property taxes are submitted to the County Auditor by December of each year, to be levied on January 1 on property <br />values assessed as of the same date. The tax levy notice is mailed in March with the first half payment due on May 15 <br />and the second half payment due on October 15. <br /> <br />Unpaid taxes at December 31 become liens on the respective property and are classified in the fund financial statements <br />as delinquent taxes receivable. <br /> <br />Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a deferred <br />inflow of resources for taxes not received within 60 days after year end in the governmental fund financial statements. <br /> <br />Accounts Receivable <br /> <br />All miscellaneous accounts receivable are shown at net of an allowance for doubtful accounts. Accounts receivable <br />include amounts billed for services, such as water, sewer, storm water and nuisance charges, provided before year end. <br />Unbilled utility enterprise fund receivables are also included for services provided in 2022. The City annually certifies <br />delinquent water, sewer, storm water and nuisance accounts to the County for collection in the following year. Therefore, <br />there has been no allowance for doubtful accounts established. <br /> <br />All trade (utility) and property tax receivables are shown at gross amount, since both taxes and trade (utility) receivables <br />are assessable to the property taxes and are collectible upon the sale of the assessed property. <br /> <br />Lease Receivable <br /> <br />The City’s lease receivable is measured at the present value of lease payments expected to be received during the lease <br />term. Under the lease agreement, the City may receive variable lease payments that are dependent upon the lessee’s <br />revenue. The variable payments are recorded as an inflow of resources in the period the payment is received. <br /> <br />A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of <br />the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized <br />on a straight-line basis over the term of the lease. <br /> <br />Due From Other Governments <br /> <br />The amounts due from other government primarily include amounts for project cost in which the City is receiving grants <br />to support the projects. <br /> <br />Special Assessments <br /> <br />Special assessments represent the financing for public improvements paid for by benefiting property owners. These <br />assessments are recorded as receivables upon certification to the County. Special assessments are recognized as <br />revenue when they are received in cash or within 60 days after year end. All governmental special assessments receivable <br />are offset by a deferred inflow of resources in the fund financial statements. At December 31, 2022, the total delinquent <br />special assessment receivable balance is $20,312. <br /> <br /> <br />59 105