Laserfiche WebLink
CITY OF HUGO, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS (CONTINUED) <br />4. Other Information (Continued) <br />D. Postemployment Benefits <br />As required by state statute, employees are allowed to participate in the City's group health <br />insurance plan after retirement. However, management has determined that any liability related <br />top postemployment benefits would be immaterial to these financial statements as of December <br />31, 2016 <br />5. Implementation of New Accounting Principles <br />The City adopted the provisions of Governmental Accounting Standards Board Statement No. 72, Fair <br />Value Measurement and Application. This statement generally requires investments to be measured at <br />fair value and requires disclosures to be made about fair value measurements including the level of <br />hierarchy and the valuation techniques utilized by the City. <br />The City adopted the provisions of Governmental Accounting Standards Board Statement No. 76, <br />Hierarchy of Generally Accepted Accounting Principles of the State and Local Governments. This <br />statement established the order and priority of pronouncements and other sources of accounting and <br />financial reporting guidance that governments should apply. This statement did not impact the <br />preparation of these financial statements. <br />The City adopted the provisions of Governmental Accounting Standards Board Statement No. 77, Tax <br />Abatement Disclosures. This statement requires the disclosure of information related to tax abatement <br />agreements entered into by the City, such as the financial statement impact, amount of taxes the City <br />has promised to forego, and commitments made under the agreements. <br />The City adopted the provisions of Governmental Accounting Standards Board Statement No. 82, <br />Pension Issues — an Amendment of GASB Statements No. 67, No. 68, No. 73. The objective of this <br />statement is to improve consistency in the application of pension accounting and financial reporting <br />requirements by addressing certain issues that have been raised during implementation of the three <br />standards listed above. One of the significant changes included in this statement clarifies the <br />presentation of covered payroll in the required supplementary information to reflect the amount of <br />payroll in which contributions made to the pension plan are based. <br />67 <br />