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• CITY OF FALCON HEIGHTS, NIINNESOTA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) The government reports the following major proprietary funds: The Sanitary Sewer enterprise fund accounts for the operations of the City's sanitary sewer utility. The Storm Drainage enterprise fund accounts for the activities of the government's storm drainage operations. The government reports the following fiduciary fund: The Mayor's Commission Against Drugs agency fund accounts for the amounts related to this program held by the City in a strictly custodial capacity. • Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund fmancial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private-sector guidance. As a general rule, the effect of interfund activity has been eliminated from the government- wide fmancial statements. Exceptions to this general rule are charges between the government's sanitary sewer function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. The City levies its property tax for the subsequent year during the month of December. December 28 is the last day the City can certify a tax levy to the County Auditor for collection the following year. Such taxes become a Iien on January 1 and are recorded as receivables by the City at that date. The property tax is recorded as revenue when it becomes measurable and available. Ramsey County is the collecting agency for the levy and remits the collections to the City three times a year. Taxes not collected as of December 31 each year are shown as • delinquent taxes receivable. 46