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E. Cash and Investments <br />F. Property Taxes <br />G. Special Assessments <br />CITY OF RAMSEY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 1993 <br />Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) <br />D. NeamIrement Focus and Basis of Accountina (continued) <br />The Proprietary Funds are reported on the accrual basis of accounting. <br />Under this basis of accounting, transactions are recorded in the following <br />manner: <br />1. Revenue Recognition - Revenue is recognized when it is earned. <br />2. Recording of Expenditures - Expenditures are recorded at the time the <br />liability is incurred. <br />Cash balances from all funds are combined and invested to the extent <br />available in short -term investments. Earnings on investments are allocated <br />to the individual funds based upon the average of month -end cash and <br />investment balances. <br />Cash and investments held by trustee include balances held in segregated <br />accounts that are established for specific purposes. In the 1993A Refunding <br />Bonds Debt Service Fund, the refunding bond escrow account held by the <br />trustee is established to refund the 1987A Tax Increment Bonds. In the <br />Agency Funds, trust accounts are established for deferred compensation <br />payable to employees. <br />Investments are stated at cost, which approximates market value. Assets <br />held by deferred compensation trustees are carried at market value. <br />A property tax levy is approved by Council resolution prior to December 31, <br />of each year, and certified to the County Auditor for collection. Property <br />taxes attach an enforceable lien on taxable property within the City on <br />January 1. A portion of the property taxes levied is paid by the State of <br />Minnesota through homestead and agricultural credit aid (HACA) which is <br />included in intergovernmental revenue in the financial statements. <br />Property taxes may be paid by taxpayers in two equal installments on May 15 <br />and October 15. The County provides tax settlements to cities three times a <br />year. Revenue from property taxes which is not collected within 60 days of <br />year -end is deferred since it is not available to meet obligations of the <br />current year. <br />Special assessments represent the financing for public improvements <br />by the benefitting property owners. These assessments are <br />receivables upon certification to the County. The corresponding <br />the delinquent (unremitted) and deferred (certified but not <br />special assessments receivable is deferred until the year <br />becomes available (collected within 60 days of year -end). <br />-15- <br />paid for <br />recorded as <br />revenue from <br />yet levied) <br />in which it <br />