1988 CAFR - Laserfiche WebLink

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CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (Continued) December 31, 1988 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G. Inventory 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. Accumulated Unpaid Vacation and Sick Pay The City compensates employees upon termination for unused vacation leave at the current rate of pay up to a maximum based on length of service. 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 of 120 days. Based on the length of service, terminating employees are com- pensated for 1/3 of any unused sick leave at the current rate of pay. 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 October of each year and are certified to Anoka County for collection in the following year. In Minnesota, counties act as collection agents for all prop- erty 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 collect- ible, net of delinquencies. Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes may be paid on February 28 and June 30. The County provides tax settlements to cities and other taxing districts four times a year, in February, April, July, and December. Taxes which remain unpaid at December 31 are classified as delinquent taxes receivable and are fully offset by deferred revenue because they are not known to be available to finance current expenditures. Cities in Minnesota operate under a for an increase in the tax levy each Deflator increase, further indexed households or population, whichever indebtedness are not limited by this levy limitation law which allows year equal to the Implicit Price by the percentage increase in is greater. Levies for bonded law.