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<br /> <br />City of Little Canada, Minnesota <br />Notes to the Financial Statements <br />December 31, 2023 <br /> <br />Property Taxes <br /> <br />The City Council annually adopts a tax levy and certifies it to the County in December for collection in the following year. <br />The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable <br />property within the City on January 1 and are payable by the property owners in two installments. Property taxes may be <br />paid by taxpayers in two equal installments on May 15 and October 15. Ramsey County provides settlement to cities and <br />other taxing districts three times a year. <br /> <br />Delinquent taxes receivable include the past six years’ uncollected taxes. Delinquent taxes have been offset by a deferred <br />inflow of resources for taxes not received within 60 days after year-end in the governmental fund financial statements. <br /> <br />Accounts Receivable <br /> <br />When necessary, the City utilizes an allowance for uncollectible accounts to value its receivables. However, the City <br />considers all of its current receivables to be collectible. <br /> <br />Special Assessments <br /> <br />Special assessments represent the financing for public improvements paid for by benefiting property owners. These <br />assessments are recorded as receivable upon certification to the County. Special assessments are recognized as revenue <br />when they are received in cash or within 60 days after year end. All governmental special assessments receivable are <br />offset by a deferred inflow of resources in the fund financial statements. <br /> <br />Interfund Receivables and Payables <br /> <br />Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the <br />fiscal year are referred to as either “interfund receivables/payables” (i.e. the current portion of interfund loans) or <br />“advances to/from other funds” (i.e. the non-current portion of interfund loans). All other outstanding balances between <br />funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities <br />and business-type activities are reported in the government-wide financial statements as “internal balances.” <br /> <br />Inventories and Prepaid Items <br /> <br />Inventories of materials and supplies are recorded at cost, which approximates market, using the first-in, first out (FIFO) <br />method. Inventories consist of expendable supplies held for consumption. Inventories of governmental funds are <br />recorded as expenditures when consumed rather than when purchased. <br /> <br />Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. The <br />City uses the consumption method to account for all prepaid items. <br /> <br />Lease Receivable <br /> <br />The City’s lease receivable is measured at the present value of lease payments expected to be received during the <br />lease term. <br /> <br />A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of <br />the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized <br />on a straight-line basis over the term of the lease. <br /> <br />Assets Held for Resale <br /> <br />Land was acquired by the City for subsequent resale for redevelopment purposes. Land held for resale in an asset <br />recorded at the lower of cost or market value in the fund that acquired it. <br /> <br />64