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CITY OF ORONO, MINNESOTA
<br />Notes to Financial Statements (continued)
<br />December 31, 1997
<br />NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
<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’ budgets for the following fiscal year beginning January 1. These
<br />budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). The City
<br />has established budgetary control at the department level. City management must request Council approval
<br />before exceeding the budget at that level. City management may transfer appropriations within the
<br />department level without Council approval. Appropriations lapse at year-end; however, the Council may
<br />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 />Adopted
<br />Budeet
<br />Net
<br />Budget
<br />Amendment
<br />Amended
<br />Budget
<br />Genera] Fund Expenditures
<br />Mayor and Council $ 51,970 $ 410 $ 52.’80
<br />Administration 197,295 3,410 200,705
<br />Elcclioa*^20 510 530
<br />Assessing 78,065 690 78,755
<br />Legal 97,700 (14,950)82,750
<br />Human services 16,155 (2,100)14,055
<br />Central services 168,430 14,400 182,830
<br />Police protection 1,308,170 33,360 1,341,530
<br />Fire protection 218,600 2,460 221,060
<br />Protective inspection and zoning 314,870 42,850 357,720
<br />Emergency preparedness 2,500 1,190 3,690
<br />Animal control 15,135 (3,000)12,135
<br />Streets 495,170 (26,150)469,020
<br />Parks and recreation 52,555 (2,250)50,305
<br />Recycling 73,805 (5,000)68,805
<br />Engineering 14,420 (1,200)13,220
<br />Special services - consulting/policc 42,050 4,780 46,830
<br />Contingency 29,255 8,350
<br />37,605
<br />Operating transfer out 118,500 (23,500)95,000
<br />Net amendments $ 34.2o0
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