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CITY OF MOUNDS VIEW Notes to Basic Financial Statements December 31, 2023 NOTE 1— SIGNIFICANT ACCOUNTING POLICIES A. Organization The City of Mounds View, Minnesota (the City) is a municipal corporation that operates under a Home Rule Charter adopted on October 11, 1979. The City is governed by a Mayor and City Council form of government. The Mayor and City Council are elected on an at -large basis with the Mayor serving two-year terms and the City Council serving four-year terms. The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard -setting body for establishing governmental accounting and financial reporting principles. The City's more significant accounting policies are described below: B. Reporting Entity In accordance with accounting principles generally accepted in the United States of America, these financial statements include the City (the primary government) and its component units. The City includes all funds, organizations, institutions, agencies, departments, and offices that are not legally separate from such. Component units are legally separate organizations for which elected officials of the City are financially accountable and are included within the basic financial statements of the City because of the significance of their operational or financial relationships with the City. The City is considered financially accountable for a component unit if it appoints a voting majority of the organization's governing body and it is able to impose its will on the organization by significantly influencing the programs, projects, activities, or level of services performed or provided by the organization, or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the City. As a result of applying the component unit definition criteria above, certain organizations are presented in this report as blended component units (which are reported as if they were a part of the City) or related and jointly governed organizations (in which the relationship of the City with the entity is disclosed). Blended Component Unit Economic Development Authority (EDA) — The EDA was created to carry out housing and economic development activities within the City. The governing board is the City Council. The City Council also approves tax levies and directs the activities of the EDA's management. Various city employees, such as the city administrator, finance director, and the city's attorney perform key management functions for the EDA. The EDA's activity is reported as the Economic Development Authority Special Revenue Fund. The EDA does not issue separate financial statements. 99191!