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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 1983 <br />Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued <br />LOCAL GOVERNMENT AID REVENUE RECOGNITION <br />Local government aid is provided to the City by the State as a shared tax based <br />upon a statutory formula and without restrictions. Payment from the State is <br />generally received during each calendar year for that calendar year. The City <br />recognizes local government aid revenue when it becomes both measurable and <br />available to finance current operations. In practice, local government aid is <br />recognized as revenue as it is received in cash. <br />GRANT REVENUE RECOGNITION <br />The City receives various Federal, State and other grants, the purpose of <br />which is to fund specific City expenditures. These revenues are recognized at <br />the time of the specific expenditures. <br />The City also receives Federal Revenue Sharing and other general purpose <br />grants. These grants are recognized as revenues in the period to which the <br />grant-applies. <br />PARK DEDICATION FEE REVENUE RECOGNITION <br />The City receives Park dedication fees from developers. The amount due the <br />City is collectible when the developer's land is platted. The City has granted <br />a delay in the collection from several property owners pending development of <br />the platted property. The amounts not collected at the normal time of receipt <br />have been presented as deferred revenue. The amount of unrecognized park dedi- <br />cation fees due the City upon application for building permits was $11,316 and <br />$12,306 at December 31, 1983 and 1982 respectively. <br />PROPERTY TAX REVENUE RECOGNITION <br />The City Council annually adopts a tax levy and certifies it to the County for <br />collection. The County is responsible for billing and collecting all property <br />taxes for itself, the City, the local School District and other taxing <br />authorities. These taxes are payable (by property owners) by May 31 and <br />October 31 of each calendar year. These taxes are collected by the County and <br />remitted to the City by approximately July 15, and December 15. Additionally, <br />delinquent collections (November through February) are remitted to the City <br />each March. The City has no ability to enforce payment of property taxes by <br />property owners. The County possesses this authority. <br />Taxes on homestead property (as defined by State Statutes) are partially <br />reduced by a homestead credit. This credit is paid to the City by the State in <br />lieu of taxes levied against homestead property. The State remits this credit <br />in installments each year. <br />The City recognizes property tax revenue when it becomes both measurable and <br />available to finance expenditures of the current period. In practice, current <br />and delinquent taxes and homestead credits received by the City in July and <br />December are recognized as revenue for the current year. Additionally, taxes <br />collected by the County by December 31 (remitted to the City the following <br />April) and taxes and credits not received at the normal time are recognized as <br />revenue for the current year. <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />