2003 CAFR - Laserfiche WebLink

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NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Compensated Absences The City compensates employees upon termination for unused vacation leave at the current rate of pay times the employee's unused vacation leave. City employees are entitled to sick leave at a 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. Terminated employees are paid for unused sick leave in accordance with the prevailing agreement or code up to a maximum of one -third of their unused sick leave at their current rate of pay. All compensated absences are paid out of the General Fund and the Economic Development Authority Special Revenue Fund. Employee compensation for vacation and sick leave accrued through December 31, that is payable from available expendable resources, is shown as an expenditure and established as a short-term liability. Long -term liabilities for compensated absences are recorded in the General Long -Term Debt Account Group. N. Contributed Capital Contributed capital is recorded in Proprietary Funds that have received capital grants or contributions from developers, customers, or other funds. Beginning January 1, 2001, to be in accordance with GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions, external capital contributions received have been reported as revenue and closed to retained earnings rather than as direct additions to contributed capital. O. Budgets and Budgetary Accounting The City follows the following procedures in establishing the budgetary data reflected in the financial statements. 1. The City Administrator submits proposed operating budgets to the City Council for the following fiscal year beginning on January 1. The operating budgets include proposed expenditures and the means of financing them. The City Council is provided with budgets that set forth the total for each budgeted fund and each department, function or program, with segregation as to objects and purpose of expenditures. 2. Public hearings are conducted to obtain public comments. 3. The budgets are legally enacted through passage of a resolution. 4. After the budget resolution has been adopted, the City Council may 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 City 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. -16-