06-24-2024 CC Agenda Packet - Laserfiche WebLink

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City of Orono, Minnesota Notes to the Financial Statements December 31, 2023 Note 1: Summary of Significant Accounting Policies (Continued) The City has the following recurring fair value measurements as of December 31, 2023: Negotiable certificates of deposits, government and municipal bonds of $11,998,562 are valued using a matrix pricing model (Level 2 inputs) Property Taxes Property taxes are submitted to the County Auditor by December of each year, to be levied on January 1 on property values assessed as of the same date. The tax levy notice is mailed in March with the first half payment due on May 15 and the second half payment due on October 15. Unpaid taxes at December 31 become liens on the respective property and are classified in the fund financial statements as delinquent taxes receivable. Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a deferred inflow of resources for taxes not received within 60 days after year end in the governmental fund financial statements. Accounts Receivable All miscellaneous accounts receivable are shown at net of an allowance for doubtful accounts. Accounts receivable include amounts billed for services, such as water, sewer, storm water and nuisance charges, provided before year end. Unbilled utility enterprise fund receivables are also included for services provided in 2023. The City annually certifies delinquent water, sewer, storm water and nuisance accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts established. All trade (utility) and property tax receivables are shown at gross amount, since both taxes and trade (utility) receivables are assessable to the property taxes and are collectible upon the sale of the assessed property. Lease Receivable revenue. The variable payments are recorded as an inflow of resources in the period the payment is received. A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease. Due From Other Governments The amounts due from other government primarily include amounts for project cost in which the City is receiving grants to support the projects. Special Assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the County. Special assessments are recognized as revenue when they are received in cash or within 60 days after year end. All governmental special assessments receivable are offset by a deferred inflow of resources in the fund financial statements. At December 31, 2023, the total delinquent special assessment receivable balance is $89,201. 55 All miscellaneous accounts receivable are shown at net of an allowance for doubtful accounts. All miscellaneous accounts receivable are shown at net of an allowance for doubtful accounts. Accounts receivable Accounts receivable include amounts billed for servicesinclude amounts billed for services, such as water, sewer, storm water and nuisance charges, , such as water, sewer, storm water and nuisance charges, provided before year end. provided before year end. Unbilled utility enterprise fund receivables are also included for services provided in Unbilled utility enterprise fund receivables are also included for services provided in 2023. The City annu. The City annually certifies ally certifies delinquent water, delinquent water, sewer,storm waterstorm water and nuisanceand nuisance accounts to the County for collection in the following year. Therefore, accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts established.there has been no allowance for doubtful accounts established. All trade (utility) and property tax receivables are shown at gross amount, since both taxes and trade (utility) receivables All trade (utility) and property tax receivables are shown at gross amount, since both taxes and trade (utility) receivables are assessable to the property taxes and are collectible upon the sale of the assessed property.are assessable to the property taxes and are collectible upon the sale of the assessed property. 90