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CITY OF ORONO <br />NOTES TO FINANCIAL STATEMENTS (Continued) <br />December 31, 1989 <br />Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) <br />The County spreads all levies over taxable property. Such taxes <br />become a lien on January 1 and are recorded as receivables by the City <br />on that date. Revenue is accrued and recognized in the year collect­ <br />ible. Taxes which remain unpaid at December 31 are classified as <br />delinquent taxes receivable. Revenue from property taxes which is not <br />collected within 60 days of year-end is deferred since it is not <br />available to meet obligations of the current year. <br />Real property taxes may be paid by taxpayers in two equal installments <br />on May 15 and October 15. Personal property taxes may be paid on <br />February 28 and June 30. The County provides tax settlemrnts to <br />cities and other taxing districts four times a year, in February, <br />April, June, and November. <br />Cities in Minnesota operate under a levy limitation law which allows <br />for an Increase in the tax levy each year equal to the Implicit Price <br />Deflator Increase or 3X, whichever is greater, further Indexed by the <br />percentage Increase in households or population, whichever is greater. <br />Levies for bonded Indebtedness are not limited by this law. <br />H. Special Assessments <br />Special assessments represent the financing for public Improvements <br />paid for by benefitting property ovmers. These assessments are <br />recorded as receivables upon certification to the County. The <br />corresponding revenue from the delinquent (unremitted) and deferred <br />(certified but not yet levied) special assessments receivable is <br />deferred until the year in which it becomes available (collected <br />within 60 days of year-end). <br />I. Inventories <br />Inventories are stated at the lower of cost or market on the first-in, <br />first-out basis. <br />J. Property, Plant, and Equipment <br />Fixed assets are stated at cost, estimated historical cost, or in the <br />case of contributions, at fair market value at the time received. <br />Infrastructure fixed assets — roads, bridges, curbs and gutters, <br />streets and sidewalks, drainage systems, lighting systems, and similar <br />assets — are not included in the City's accounting records. <br />1) General Fixed Assets Account Group - General fixed assets are <br />not depreciated. The costs of property, plant, and equipment <br />are accounted for as current expenditures of the Governmental <br />Fund Types in the year purchased. <br />-30-