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NOTE 1—SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) <br /> F. Receivables <br /> All miscellaneous accounts receivable are presented net of an allowance for doubtful accounts. Since the <br /> City is generally able to certify delinquent amounts to the county for collection as special assessments,no <br /> allowance for uncollectible accounts has been provided on these receivables. The only receivables not <br /> expected to be fully collected within one year are property taxes and special assessments receivable. <br /> G. Property Taxes <br /> Property tax levies are set by the City Council by December of each year and are certified to the County <br /> Auditor for collection in the following year. In Minnesota,counties act as collection agents for all property <br /> taxes. A portion of the property taxes levied is paid by the state of Minnesota through various tax credits, <br /> which is included in intergovernmental revenue in the financial statements. <br /> The county spreads all levies over taxable property. Such taxes become a lien on January 1 and are recorded <br /> as receivables by the City on that date. Real property taxes may be paid by taxpayers in two equal <br /> installments on May 15 and October 15. Personal property taxes are due in full on May 15. The county <br /> provides tax settlements to cities and other taxing districts several times a year. Taxes which remain unpaid <br /> at December 31 are classified as delinquent taxes receivable. <br /> H. Special Assessments <br /> Special assessments represent the financing for public improvements paid for by the benefiting property <br /> owners. These assessments are recorded as delinquent(levied but unremitted)or deferred(certified but not <br /> yet levied) special assessments receivable. <br /> I. Prepaid items <br /> Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as <br /> prepaid items in both government-wide and fund financial statements. In governmental funds,prepaids are <br /> recognized by the consumption method,proportionately over the periods that service is provided. <br /> J. Interfund Receivables and Payables <br /> Activity between funds that is representative of lending or borrowing arrangements is reported as either <br /> "due to/from other funds" (current portion) or "advances to/from other funds." All other outstanding <br /> balances between funds are reported as "due to/from other funds." Any residual balances outstanding <br /> between the governmental activities and business-type activities are reported in the government-wide <br /> financial statements as"internal balances." <br /> K. Pensions <br /> For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension <br /> expense, information about the fiduciary net position of the Public Employees Retirement Association <br /> (PERA)and additions to/deductions from the PERA's fiduciary net positions have been determined on the <br /> same basis as they are reported by the plan except that the PERA pension plans fiscal year-end is June 30. <br /> For this purpose,plan contributions are recognized as of employer payroll dates and benefit payments and <br /> refunds are recognized when due and payable in accordance with the benefit terms. Investments are <br /> reported at fair value. <br /> 65 <br />