CC PACKET 04252000 - Laserfiche WebLink

Home Browse Search

HOUSING AND REDEVELOPMENT AUTHORITY OF ST. 'ANTHONY NOTES TO FINANCIAL STATEMENTS DECEMBER 31 , 1999 - 1 Note 1. Significant Accounting Policies, continued E. Budgets and Budgetary Accounting ' A plan of financial operation of the Authority is established in the budget adopted by the Commissioners. The budget outlines proposed expenditures- and the means of financing them. A budget is adopted for the General Fund and budgeted expenditure appropriations -lapse at year end. Budgetary integration is not employed for Debt Service Funds because effective financial control is achieved through general obli- gation bond indenture provisions. Budgetary control for Capital Project Funds is , accomplished through the use of project-length financial plans. F. Cash and Investments Cash balances from all funds are' pooled and invested to the extent available in authorized investments, which are similar to those available to the City and include, (1) certificates of deposit, (2) direct, guaranteed or insured obligations of the U.S. Treasury or other federal agencies, (3) registered investment companies, (4) bankers acceptances, (5) commercial paper, (6) guaranteed investment contracts, , (7) repurchase agreements. This cash management pool operates as a demand deposit account for participating funds. Investments are stated at fair market value. Investment income is recognized as ' earned and is allocated among participating funds on the basis of the average cash balance participation of each fund throughout the year. The change in fair values is reflected as net increase (decrease) in fair value of investments. G. Property Taxes The incremental amount of general property taxes collected on the current tax capa- city of properties within the tax increment districts is remitted to the Authority. This amount-represents property taxes collected in excess of taxes collected on the , base tax capacity. The original base tax capacity remains as part of the tax base of the City, taxes collected on this tax base are remitted to the City. Property tax levies are approved and certified to the county by the City of St. Anthony in December of each year for collection in the following year. The county spreads all levies over taxable property and acts as collection agent (responsible for billing and collection) for such taxes. Property taxes become a lien on the property on the first day of the year collectible. Property taxes are payable in two equal installments by property owners, usually in May and October. The county remits tax collections to the Authority and other taxing authorities three times during the year. The Authority has no authority or ability to enforce payment of property ' taxes by property owners; this authority is possessed by the county. The Authority recognizes property taxes revenue when it becomes both measurable and available to finance current period expenditures. Revenue is recognized- in the year of anticipated collection, with amounts due from the county and received early in the following year recorded as unremitted taxes receivable. Taxes which remain unpaid at year-end, are classified as delinquent taxes receivable. An allowance is , provided for the full amount of delinquent taxes because of the uncertainty of col- lection and availability of the delinquent amounts. -10 '