07-14-1986 Council Packet - Laserfiche WebLink

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Note 1: Note 2 NOTES TO FINANCIAL STATEMENTS - Continued December 31, 1985 Summary of Significant Accounting Policies - Continued F. PROPERTY, PLANT, AND EQUIPMENT - Continued (2) Proprietary Fund Types - Fixed assets of the proprietary funds are depreciated using the straight-line method over the esti- mated useful lives of assets, as follows: Buildings 25 - 50 Years Distribution/Collection System 10 - 40 Years Equipment - 10 Years Depreciation on contributed assets charged to operations is closed to contributed capital. G. BOND DISCOUNTS - Bond discounts are amortized annually over the life of the related bond issue. H. BUDGET- The amounts shown in the financial statements as "Budget" represent the original budget amounts based on the modified accrual basis of accounting. Budgets are adopted annually by the Council. Only those funds for which budgets are adopted are included in the "Combined Statement of Revenue and Expenditures - Budget and Actual." No other funds, or portions of funds, had budges adopted. Appropriations lapse at year-end. I. TOTAL MEMORANDUM ONLY COLJMNS •- Because the accounting system is organized and operated on a fend basis, the columns on the combined financial statements captioned, "Total (Memorandum Only)" are pre- sented for informational purposes only, and are not intended to present consolidated Information. Pr�rty Taxes A property tax levy is approved by Council resolution and certified to the county auditor for collection. Property taxes attach an enforce- able lien on taxable property within the City on January 1. A portion of the property taxes levied is paid by the state of Minnesota through homestead and other tax credits which are included in intergovernmental revenue in the financial statements. An allowance for uncoll.ecti}Ale taxes is not considered necessary based on the City's collection experience in recent years. - 13 -