AgdaPkt 2007-01-08 - Laserfiche WebLink

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Redevelopment Agency of the City of Redwood City Notes to Basic Financial Statements, Continued For the year ended June 30,2006 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 1. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. J. Property Taxes San Mateo County assesses properties and bills, collects, and distributes property taxes as follows: Secured Unsecured Lien/levy dates January 1 January 1 Due date 50% on November 1 and February 1 July 1 Delinquent as of December 10 & April 10 August 1 The term "unsecured" refers to taxes on personal property other than real estate, land and buildings. These taxes are secured by liens on the property being taxed. Property tax revenues are recognized by the Agency in the fiscal year they are assessed provided they become available as defined above. Under the County's Teeter plan, the County remits 100% of the taxes levied to the Agency within sixty days of the due date. K. New Pronouncements In 2006, the Agency adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statement: ~ GASB Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries - The Statement establishes accounting and financial reporting standards for impairment of capital assets. A capital asset is considered impaired when its service utility has declined significantly and unexpectedly. This Statement also clarifies and establishes accounting requirements for insurance recoveries. ~ GASB Statement No. 46, Net Assets Restricted by Enabling Legislation - The Statement addresses selected issues and amends GASB Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments. The Statement enhances the usefulness and comparability of net asset information and clarifies the meaning of legal enforceability. The Statement also specified accounting and financial reporting requirements for restricted net assets. ~ GASB Statement No. 47, Accounting for Termination Benefits - The Statement provides accounting guidance for state and local governmental employers regarding benefits (such as early-retirement incentives and severance benefits) provided to employees that are terminated. The Statement requires recognition of the cost of involuntary termination benefits in the period in which a government becomes obligated to provide benefits to terminated employees. 26