Agenda - Council - 06/23/1981 - Laserfiche WebLink

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.I I '1 I I1 IJ I ,I I I1 I. Property Taxes Proper~y taxes are set by the City Council with the levy certified to the County, which acts as collection agent, in October prior to the year collectible. Such taxes constitute a lien on the property on January 1 of the year collectible. Cities in Minnesota operate under a levy limitation law which generally permits an eight percent increase in taxes levied per capita each year along with certain permitted special levies as set forth in Minnesota Statutes. The levy limitation law applies to the City of Ramsey beginning in 1981. Levies for bonded indebtedness are not limited by this law. CHANGE IN ACCOUNTING FOR ENCUMBRANCES For the year ended December 31, 1980, the City changed its accounting method for encumbrances and retroactively restated the financial statements of the prior year to apply the new method. In prior years, purchase orders (contracts) were treated as expenditures when purchase orders (contracts) were issued (entered into). Under the revised method, encumbrances are not treated as expenditures. This change was made to comply with the encumbrance accounting requirements of Statement No. 1 issued by the National Council on Governmental Accounting which became effective in 1980. The effect of this change on expenditures, by fund type, was as follows: Increase (Decrease) 1980 1979 General ............................. $ 6,102 $(6,102) Special Revenue ..................... 9,0~1 (9,0~1) Special Assessments ................. ~3,686 (38,117) Fund balances in each fund have been adjusted for the effect of applying retroactively the new method of accounting. RESERVHD FUND BALANCE At December 31, 1980, the City has rose,red fund balance in the General Fund for ~13,279, representing the estimated liability for unused vacation pay. - 9 -