09-11-1989 - Agenda Packet City Council - regular meeting

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e CITY OF ONONU CITY OF ORONO NOTES TO FINANCIAL STATEMENTS (Continued) Decembar 31. 1988 Mote 1. SUMIARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 2) Proprietary Fund Types - Fixed assets of the I'roprletary Funds are depreciated using the straight-line method over the estl- sated useful lives of assets, as follows: Buildings 25-50 Years Distribution/Collection System 10-75 Years Equipment 3-.'0 Years Depreciation on contributed assets charged to operations 1s closed to contributed capital. K. Vacation and Severance Benefits Payable (Cnnrensated Absence& The liability for vested vacation and severance bereflts in recorded in the General Long -Term Debt Account Group and in the Enterprise Funds, as appropriate. The current portlon of the liability not applicable to Erterprise Funds is recorded in the General Fund. L. Memorandum Only Columns Because the accounting system is orgai.ired and operated on a fund basis, the columns on the combined financial statements captioned, "Totals (M.aurandum Only)" are presented for Informational purposes only. They do not fairly ;resent financial ponitlon or results of operations for the City as n wh,.le and are not Intended to represent consolidated information. M. Comparative Data Comparative total data for the prior year ha% been presented in the accompanying financial statements in order to provide an understanding of changes In the City'n financial p(.sltion and open%:Inns. However, comparative data has not been presented In all statements because its Inclusion would make certain statements undoly cump.ex and dif- ficult to understand. Note 2. BUDGETS AND BUDGETARY ACCOUNT111G The City follows these procedures in es;ebllshing the budgetary data reflected in the financial statements: 1) The City Administrator submits to the Clt% Council a prnnosed operating budget for the fiscal year crane n, ing on January I of the following year. The operating tvidgvt Includes prop,sed expenditures and the means of financing them. 1) At least one special Council meeting Is eond-ted to obtain r-.olic comments. NOTES TO FINANCIAL STATEMENTS (Continued) December 31. 19H Note 2. BUDGETS AND BUDGETARY ACCOUNTING 'continued) 3) The budget Is adopted by the City Council. Neither Minnesota Statutes nor City Code establish a legal level of control for the budgets presented. The City Code requires the City Administrator to make such recos;endations for budget revi- ■lons as may from time to time be determined to be desirable and necessary. 4) Fermal budgetary Integration is employed as a management control device during the year for the General Fund and Special Revenue Funds (excluding the Community Development Special Revenue Fund). Budgetary control for Debt Service Funds is achieved through general obligation bond provisions. Budgetary control for Capital Project Funds is accomplished through the use of project controls. 5) Budgets for the General Fund and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgeted amounts presented are a originally adopted, or as amended by the City Council. Individual amendments were not material in relation to the original appropriations which were amended. Budgeted expen- diture appropriations lapse at year-end; however, the City Council may approve carryover of specific amounts. Purchase commitments outstanding at year-erd were not significant. Because the City did not budget for all Special Revenue Funds, the "Actual" .olumn of the Combined Statement of Revenue and Expenditures - Budget and Actual. General and Special Revenue Funds" excludes amounts relating to unbudgeted funds. A reconciliation of actual results for budgeted and unbudgeted Special Revenue Funds follows: Other Financing fund Balance Sources December 31. Revenue Expenditures (Lsf1L 1988 Special Revenue Funds: Budgeted funds 545,434 $ 66,030 $66.250 $539,276 Unhudgeted Fund - Community Development 4,734 4,734 5$0,168 1_901764 3c666250 5539,276