1994 CAFR - Laserfiche WebLink

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CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) L. Budgets and Budgetary Accounting The City follows these procedures in establishing the budgetary data reflected in the financial statements. 1) The City Administrator submits to the City Council a proposed operating budget for the fiscal year commencing on January 1 of the following year. The operating budget includes proposed expenditures and the means of financing them. 2) Public hearings are conducted to obtain public comments. 3) The budget is legally enacted through passage of a resolution. 4) After the budget resolution has been adopted, the council may by a resolution approved by a 4/5 vote of its members, reduce the sums appropriated for any purpose by the budget resolution, or authorize the transfer of sums from unencumbered balances of appropriations in the budget resolution to other purposes. However, the Council may not increase the amounts fixed in the resolution beyond the estimated funds available except to the extent that actual receipts exceed the estimated funds available. 5) Formal budgetary integration is employed as a management control device during the year for the General Fund and certain Special Revenue Funds. Budgetary control for Debt Service Funds is achieved through general obligation bond provisions. Budgetary control for Capital Project Funds is accomplished through the use of project controls. 6) Budgets for the General Fund and certain Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). 7) As required by City Charter, the Council sets the legal level of budgetary control. Budgetary control is maintained by fund. Budgeted amounts presented are as originally adopted, or as amended by the City Council. Individual amendments were not material in relation to the original appropriations which were amended. Budgeted expenditure appropriations lapse at year -end. Encumbrances outstanding at year -end expire and are not reported in the financial statements. M. Totals Memorandum Only Columns Total columns on the combined statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns does not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. N. Comparative Data/Reclassifications Comparative data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide and understanding of the changes in the City's financial position and operations. During 1994 the Equipment Revolving Fund and the Economic Development Authority Fund were reclassified from Trust and Agency Funds to Special Revenue Funds. The 1993 data has been restated to reflect these fund reclassifications. Also, certain amounts presented in the prior year have been reclassified in order to be consistent with the current year's presentation. —13—