Laserfiche WebLink
CITY OF FALCON HEIGHTS, MINNESOTA • <br />NOTES TO THE FINANCLAL STATEMENTS <br />For the Year Ended December 31, 2003 <br />NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES <br />C. Measurement Focus, Basis of Accounting and Financial Statement Presentation <br />(Continued) <br />Governmental fund financial statements are reported using the current financial resources <br />measurement focus and the modifaed accrual basis of accounting. Revenues are recognized as <br />soon as they are both measurable and available. Revenues are considered to be available when <br />they are collectible within the current period or soon enough thereafter to pay liabilities of the <br />current period. For this purpose, the government considers revenues to be available i.f they are <br />collected within 60 days of the end of the current fiscal period. Expenditures generally are <br />recorded when a liability is incurred, as under accrual accounting. However, debt service <br />expenditures, as well as expenditures related to compensated absences and claims and judgments, <br />are recorded only when payment is due. <br />Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are <br />all considered to be susceptible to accrual and so have been recognized as revenues of the <br />current fiscal period. Only the portion of special assessments receivable due within the current <br />fiscal period is considered to be susceptible to accrual as revenue of the current period. All <br />other revenue items are considered to be measurable and available only when cash is received <br />by the government. <br />The government reports the following major governmental funds: <br />The General Fund is the government's primary operating fund. It accounts for all financial <br />resources of the general government, except those required to be accounted for in another fund. <br />The Community Development special revenue fund accounts for community development <br />revenues and expenditures. <br />The Improvement Bonds of 1999 debt service fund accounts for the resources accumulated <br />and payments made for principal and interest on this bond issue. <br />The Future Improvements capital project fund accounts for costs associated with replacement <br />of the City's utility and road systems. <br />The Tax Increment #1 Construction capital project fund accounts for costs associated with <br />TIF District #1. <br />• <br />4~ <br />