Agenda Packets - 2026/05/11 - Laserfiche WebLink

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NOTE 1—SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The City reports deferred inflows of resources related to leases receivable in the government-wide Statement of Net Position and governmental funds Balance Sheet, which requires lessors to recognize deferred inflows of resources to correspond to lease receivables.These amounts are deferred and amortized in a systematic and rationale manner over the term of the lease. Unavailable revenue arises only under the modified accrual basis of accounting and,therefore, is reported only in the governmental funds Balance Sheet. The governmental funds report unavailable revenue from special assessments and property taxes not collected within 60 days of year-end.These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. P. State-Wide Pension Plans For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from the PERA's fiduciary net position have been determined on the same basis as they are reported by the PERA. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments, and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Q. Net Position Classifications and Flow Assumptions In the government-wide and proprietary fund financial statements, net position represents the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources. Net position is displayed in three components: • Net Investment in Capital Assets — Consists of capital assets, net of accumulated depreciation, reduced by any outstanding debt attributable to acquire capital assets. • Restricted Net Position — Consists of net position restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, or laws or regulations of other governments, or enabling legislation. • Unrestricted Net Position — All remaining net position that does not meet the definition of "restricted"or"net investment in capital assets." When both restricted and unrestricted resources are available for use,it is the City's policy to use restricted resources first, and then unrestricted resources as they are needed. R. Fund Balance Classifications and Flow Assumptions In the governmental fund financial statements, fund balance is reported in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: • Nonspendable — Consists of amounts that are not in spendable form, such as prepaid items, inventory, and other long-term assets. • Restricted—Consists of amounts where there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments, or enabling legislation. • Committed—Consists of internally imposed constraints that are established by resolution of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. -40-