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61 <br />City of Elk River <br />Notes to Basic Financial Statements <br />NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) <br />D.Assets, Liabilities, Deferred Outflows/Inflows of Resources , and Net Position or Equity <br />(Continued) <br />1.Deposits and Investments (Continued) <br />In accordance with GASB Statement No. 79 , the Minnesota Municipal Investment Pool securities <br />are valued at amortized cost , which approximates fair value. There are no restrictions or <br />limitations on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be <br />deposited for a minimum of 14 calendar days. Withdrawals prior to the 14 -day restriction period <br />will be subject to a penalty equal to seven days interest on the amount withdrawn. Seven days ' <br />notice of redemption is required for withdrawals of investments in the 4M Term Series withdrawn <br />prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the <br />Series for any charges, losses, and other costs attributable to the early redemption. <br />2.Receivables <br />All trade and property tax receivables are shown at a gross amount since both are assessable to <br />the property taxes and are collectible upon the sale of the property. <br />The City Council annually adopts a tax levy and certifies it to the County in December for <br />collection in the following year. The County is responsible for collecting all property taxes for the <br />City. These taxes attach an enforceable lien on taxable property within the City on January 1 and <br />are payable by the property owners in two installments. The taxes are collected by the County <br />and tax settlements are made to the City during January , July, and December each year. <br />The County Auditor submits the list of taxes and special assessments to be collected on each <br />parcel of property to the County Treasurer in January of each year. <br />Accounts receivable include amounts billed for services provided before year end. Unbilled utility <br />enterprise fund receivables are also included for services provided in 20 24. The City annually <br />certifies delinquent accounts to the County for collection in the following year. Therefore , there <br />has been no allowance for doubtful accounts established. <br />Special assessments represent the financing for public improvements paid for by benefiting <br />property owners. These assessments are recorded as receivable upon certification to the County. <br />Special assessments are recognized as revenue when they are received in cash or within 60 days <br />after year end. All governmental special assessments receivable are offset by a deferred inflow of <br />resources in the fund financial statements unless related to unpaid charges and are due within <br />one year. <br />3.Inventory and Prepaid Items <br />Certain payments to vendors reflect costs applicable to future accounting periods and are <br />recorded as prepaid items in both government -wide and fund financial statements. Prepaid items <br />are recorded as an expenditure at the time of consumption. <br />Page 251 of 637