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CITY OF LITTLE CANADA, MINNESOTA <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2015 <br /> <br /> <br /> <br />(43) <br /> <br />NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) <br />G. Cash and Investments (Continued) <br /> <br />The City generally reports investments at fair value. The Minnesota Municipal Money <br />Market (4M) Fund is an external investment pool regulated by Minnesota Statutes that is <br />not registered with the Securities and Exchange Commission (SEC), but follows the <br />same regulatory rules of the SEC under rule 2a7. The City’s investment in this fund is <br />measured at the net asset value per share provided by the pool, which is based on an <br />amortized cost method that approximates fair value. <br /> <br />For purposes of the statement of cash flows, the City considers all highly liquid <br />investments with a maturity of three months or less when purchased to be cash <br />equivalents. All of the cash and investments allocated to the Proprietary Funds have <br />original maturities of 90 days or less. Therefore the entire balance in the Proprietary <br />Funds is considered cash equivalents. <br /> <br /> <br />H. Receivables <br />All miscellaneous accounts receivable are shown at net of an allowance for doubtful <br />accounts. Since the City is generally able to certify delinquent utility bills to the county for <br />collection as special assessments, no allowance for uncollectible accounts has been <br />provided on those receivables. Receivables not expected to be collected within one year <br />include delinquent taxes, special assessments, and certain amounts due from other <br />governmental units. Any such receivables that are not considered to be available to <br />finance current expenditures are offset by a deferred inflow of resources in the <br />governmental fund financial statements. <br /> <br />I. Property Taxes <br />The City Council annually adopts a tax levy and certifies it to the County in December <br />(levy/assessment date) of each year for collection in the following year. The county <br />spreads levies over all taxable property in the City and is responsible for billing an <br />collecting all property taxes for itself, the City, the local School District and other taxing <br />authorities. Such taxes become a lien on January 1 and are recorded as receivables by <br />the City on that date. Real property taxes may be paid by taxpayers in two equal <br />installments on May 15 and October 15. Personal property taxes are due in full on <br />May 15. The county provides tax settlements to cities and other taxing districts three <br />times a year. Revenues are generally accrued and recognized in the year collectible. <br />Taxes which remain unpaid at December 31 are classified as delinquent taxes <br />receivable. The City has no ability to enforce payment of property taxes by property <br />owners, the County possesses this authority. <br /> <br />In the government-wide financial statements the City recognizes property tax revenue in <br />the period for which taxes were levied. Uncollectible property taxes are not material and <br />have not been reported.