1991 CAFR - Laserfiche WebLink

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CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL ' STATEMENTS December 31, 1991 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Cash and Temporary Cash Investments Cash balances from all funds are combined and invested to the extent available as authorized by Minnesota State Statutes, Earnings from such investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. Temporary cash investments are stated at cost plus accrued interest, which approximates market. Investments are adjusted to market value only when a permanent decline in market value has occurred or when such investments will not be carried to maturity. Assets held by deferred compensation trustees are stated at market value. G Tnventory In Governmental Funds, the amount of inventory on hand is not material and is thus considered an expenditure when purchased. The Water and Sewer Enterprise Fund inventory includes water meters accounted for on a lower of cost (first -in, first -out) or market basis. H. Accumu] ated Unpaid Vacation and Sink Pay The City compensates employees upon termination for unused vacation leave at the current rate of pay times the lesser of the employee's unused vacation leave or the vacation leave earned during the two years immediately preceding the employee's termination date. City employees are entitled to sick leave at the rate of one day for each calendar month of full -time service, to a cumulative total determined by the applicable labor agreement or the City Code. Terminating employees are paid for unused sick leave in accordance with the prevailing agreement or Code up to a maximum of one -third of the their unused sick leave at their current rate of pay. Employee compensation for vacation and sick leave accrued thru December 31, that is paid during the first sixty days of the next year is shown as an expenditure of the prior year and established as a short -term liability. Long -term liabilities for compensated absences are recorded in the General Long -Term Debt Account Group. I. Property Taxes Property tax levies are set by the City Council in accordance with applicable Minnesota State Statutes and are certified to Anoka County for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. The County spreads all levies over taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City on that date. Revenue is accrued and recognized in the year collectible, net of delinquencies.