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NOTE 1—SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) <br /> H. Special Assessments <br /> Special assessments primarily represent the financing for public improvements paid for by the benefiting <br /> property owners. As previously mentioned under receivables, the City is also generally able to certify <br /> delinquent amounts to the county for collection as special assessments. Special assessments are recorded <br /> as receivables upon certification to the county. Special assessments are recognized as revenue in the year <br /> levied in the government-wide financial statements and proprietary fund financial statements. hi the <br /> governmental fund financial statements, special assessments are recognized as revenue when received in <br /> cash or within 60 days after year end. Governmental fund special assessments receivable which remain <br /> unpaid on December 31 are offset by a deferred inflow of resources in the governmental fund financial <br /> statements. <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. State-Wide Pension Plans <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 PERA. For this purpose, plan contributions are recognized as of <br /> employer payroll dates and benefit payments and refunds are recognized when due and payable in <br /> accordance with the benefit terms. Investments are reported at fair value. <br /> L. Deferred Outflows/Inflows of Resources <br /> In addition to assets and liabilities, the Statement of Financial Position will sometimes report a separate <br /> section for deferred outflows or inflows of resources. These separate financial statement elements represent <br /> a consumption or acquisition of net position that applies to a future period(s)and so will not be recognized <br /> as an outflow of resources(expense/expenditure)or an inflow of resources(revenue)until that time. <br /> The City reports deferred outflows and inflows of resources related to pensions and other post-employment <br /> benefits (OPEB)reported in the government-wide and enterprise funds Statement of Net Position. These <br /> deferred outflows and inflows result from differences between expected and actual experience,changes of <br /> assumptions, changes in proportion, net collective difference between projected and actual earnings on <br /> pension plan investments,and contributions to the plan subsequent to the measurement date and before the <br /> end of the reporting period. These amounts are deferred and amortized as required under pension and <br /> OPEB standards. <br /> 66 <br />