07-13-1992 Council Packet - Laserfiche WebLink

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r'-i* - - ■• ! :•■ IK' - T‘ CITY OF ORONO, MINNESOTANotes to Financial Statements (continued) December 31. 1991 NOTE 1 • SlGNinCANT ACCOUNTING POLICIES (CONTINUED) 2) Accrual - The Proprietary Funds are accounted for using the “capital maintenance" measurement focus and the accrual basis of accounting. Their revenue is recognized when it is earned and expenses are r^ognized when they are incurred E. Cash and Inmtments rifti bilinfft from all ftinds are invested to the extent available in short-term investments Investments are stated at the lower of aggregate cost or market value Earnings on investments are allocated to the ladlvidual funds based upon the average of monthly beginning cash and investment balances. Assets of the deferred compensation plan are reported in the Agency Fund at market value F. Property Taxes Property tax levies are set up by the City Council prior to Decemb'*r 31 of each year, and are certified lo Heoaepin County for collection in the following year In Minne.' *a, ct»unties act as collection agents for all imiperty taxes. The County spreads all levies over taxable propery Such taxes become a hen on January 1 and are recorded as receivables by the City on that date. Revenue is accrued and recognized in the year coflectible. Taxes which remain unpaid at December 31 are classified as delinquent taxes receivable. Reveme from property taxes which is not collected within 60 days of year-end is deferred since it is not ivtfdble to meet obligations of the current year Reel property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Pmonal property taxes may be paid on February 28 and June 30. The County provides tax settlements to cities ^ree times a year. CRio in Minnesota operate under a levy hmiiatiun law which allows for an increa.se in the tax levy each yev aqual to the Implicit Price Deflator increase or 3%. whichever is greater, further indexed by the pemntage bmease in households or population, whichever is greater Levies for bonded indebtedness an not limited by dita law. For the year 1992, cities with populations over 2,500 will generally have ■0 taicrcase in the tax levy under the levy limit taw, exeqx for debt levies. G. Spedal AaMMnents $peciiM assMsments reproent the financing for public improvements paid for by broefitting property ownan These assessments arc recorded as receivables upon certification to the County The (iwiwpcmding revenue from the delinquent (unremitted) and deferred (certified but not yet levied) special ■IMUnenti recmvabic is deferred until the year in which n beevimes available (collected within 60 days ycar<ead). i^m'30