C.A.F.R., FY 2008-09 - Laserfiche WebLink

Home Browse Search

City of Paris, Texas Notes to Financial Statements September 30, 2009 1. Summ of Significant Accounting Policies (Continued) D. Assets, Liabilities and Equity (Continued) 2. Receivable and Payables (Continued) Transactio s which constitute reimbursements to a fund for expenditures or expenses initially made fro that fund which were properly applicable to another fund are recorded as expenditur s or expenses in the reimbursing fund and as reductions of the expenditure or expense in he fund that is reimbursed. The City's d valorem taxes are levied on October 1 and are due no later than January 31 of the following year. Taxes become delinquent February 1, after which time penalties and interest and, if not paid by July, attorney's collection fees are added. A tax lien attaches to property (real and p rsonal) on January 1 of each year to secure the payment of all taxes, penalties, and interest ult mately imposed on the property. The lien is effective until all such amounts are paid. 3. Inventories Inventories are valued at cost using the first-in, first-out method. Inventories of governmental funds are m corded as expenditures when consumed rather than when purchased. 4. Restricted Assets Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for eir repayment, are classified as restricted assets because their use is limited by applicable bond covenants. The Water Revenue Construction Fund is used to report those proceeds of revenue bond issuances that are restricted for use in construction. The Revenue Bond Sinking Funds are used to segregate resources accumulated for debt service payments over the next twelve months. The Revenue Bond Reserve and Contingency Accounts are used to report resources set aside to make up potential future deficiencies in the Revenue Bond Sinking Funds and to meet unexpected contingencies or to fund asset renewals and . replacements. 5. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business- type activities columns in the government-wide financial statements. Capital assets are defined by the g vernment as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Infrastructure acquired prior to the implementation of GASB 34 are included in the financial statements. 29