6.1. SR 06-03-2013 - Laserfiche WebLink

Home Browse Search

CITY OF ELK RIVER,MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2012 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONTINUED The City uses restricted amounts to be spent first when both restricted and unrestricted fund balance is available. Additionally,the City would first use committed,then assigned,and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The City Council has formally adopted a fund balance policy for the General Fund. The City's policy is to maintain a minimum unassigned fund balance of 40-45%of budgeted operating expenditures for cash-flow timing needs. 11. Net Position Net position represents the difference between assets and deferred outflows and liabilities. Net position is displayed in three components: a. Net investment in capital assets -Consists of capital assets,net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. b. Restricted net position-Consist of net position balances restricted when there are limitations imposed on their use through external restrictions imposed by creditors,grantors,laws or regulations of other governments. c. Unrestricted net position-All other net position balances that does not meet the definition of"restricted"or "net investment in capital assets". 12. Revenues and Expenditures/Expenses Amounts reported as program revenues include 1)charges to customers or applicants for goods,services,or privileges provided,2)operating grants and contributions,and 3)capital grants and contributions,including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise,general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services,administrative expenses,and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. 13. Comparative Data/Reclassifications Comparative total data for the prior year have been presented only for individual enterprise funds in the fund financial statements in order to provide an understanding of the changes in the financial position and operations of these funds. Also,certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. 43