1999 CAFR - Laserfiche WebLink

Home

' CITY OF RAMSEY Notes to Financial Statements (continued) becember 31, 1999 NOTE 1 -SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Property Taxes Property tax levies are set by the City Council in December of each year, and certified to the County Auditor for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. A portion of the property taxes levied is paid by the State of Minnesota through Homestead and Agricultural Credit Aid (RAGA), which is included in intergovernmental revenue in the financial statements. The county spreads all levies over taxable property. Such taxes become a lien on January l .and are recorded as receivables by the City on that date. Revenue is accrued and recognized in the year collectible. Taxes which remain unpaid at December 31 are classified as delinquent taxes receivable. Revenue from property taxes which is not collected within 60 days of year-end is deferred since it is not available to meet obligations of the current year. Property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. The County provides tax settlements to cities and other taxing districts three times a year; in July, December, and January.. I. Special Assessments Special assessments represent the financing for public improvements paid for by the benefitting property owners. These assessments are recorded as receivables upon certification to the county. The corresponding revenue from the delinquent (unremitted) and deferred (certified but not yet levied) special assessments receivable is deferred until the year in which it becomes available (collected within 60 days of year-end). J. Inventories The General Fund inventory consists of postage and is recorded using the consumption method of accounting. The Water Utility Enterprise Fund inventory consists of water meters. All inventory is accounted for at cost on a specific identification basis. ' K. Property, Plant, and Equipment 1. General Fixed Assets Account Group -Fixed assets are valued at historical or estimated historical cost. No depreciation has been provided on general fixed assets. The costs of property, plant, and equipment are accounted for as current expenditures of the governmental fund types in the year purchased. The City has elected not to record infrastructure fixed assets in its accounting records. Interest incurred on the construction of fixed assets is not capitalized. i~ -15-