Laserfiche WebLink
CITY OF ORONO <br />NOTES TO FINANCIAL STATEMENTS (Continued) <br />December 31, 1989 <br />1 <br />Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) <br />Major revenue that la susceptible to accrual Includes property <br />taxes, special assessments. Intergovernmental revenue, charges <br />for services, and Interest earned on Investments. Major <br />revenue that Is not susceptible to accrual Includes licenses <br />and permits, fees, and miscellaneous revenue. Such revenue Is <br />recorded only when received because It Is not measurable until <br />collected. <br />Expenditures are recognized under the modified accrual basis <br />of accounting when the related fund liability Is Incurred, <br />except for principal and Interest on general long-term debt <br />which Is recognized when due. <br />2) Accrual - The Proprietary Funds are accounted for using the <br />"capital maintenance" measurement focus and the accrual basis <br />of accounting. Their revenue Is recognized when It Is earned <br />and expenses are recognized when they are incurred. <br />E. Budgets <br />Budgets are adopted on a basis consistent with generally accepted <br />accounting principles. Annual appropriated budgets are adopted for <br />the General and Special Revenue Funds. All annual appropriations <br />lapse at year-end; however, the City Council may approve carryover of <br />specific amounts. <br />The City does not use encumbrance accounting. <br />F. Cash and Investments <br />Cash balances from all funds are combined and invested to the extent <br />available in short-term investments. Investments are stated at the <br />lower of aggregate cost or market value. Earnings on Investments are <br />allocated to the Individual funds based upon the average of monthly <br />beginning cash and investment balances. Assets of the deferred com­ <br />pensation plans are reported in an Agency Fund at market value. <br />G. Property Taxes <br />Property tax levies are set by the City Council in October of each <br />year, and are certified to Hennepin County for collection in the <br />following year. In Minnesota, counties act as collection agents for <br />all property taxes. <br />-29-