AgdaPkt 2009-01-12 clsd and reg - Laserfiche WebLink

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N"OTE 1"- SUMMARY qF SIGNIFlCANT ACCOUNTING POLICIES (CONTINUED) .:. The City participates. in an in~estment pool m.anaged bY the State of California titled Local Agency. Investment Fun4JLAIF) which has invested a portion of the pooled funds in.StructUred Notes and Asset~.:. . Backed Securities. .LAIF's iiwestments arc subject to credit risk with the full f~th and credit of:the State. of California collateralizing these. Investments. .In. addition, these Structured ~otes. and Asset~Backcd . Securities aresl1bject~io market risk as.toithe change .in int.erest rates. . . . . . .: Cash .equivalents are.. considered .amount!dn demand deposits and short~te~ .investrnents:with a maturity date within three. months of the: date acquired by the City and are presented as "Cash and Investments" in the accompanYing Basi~ Financial ~tatements. . . . G.: Jnvento';ie.~ . ':.: :. .: .. : Inventories ~e :stated .at moving average cost. . The, cost is recorded as an expenditure at the time an individual inventory. -hem is: consumed. As inventories .must be maintained:.at a certain level, a reserve for ; . :inventones is set aside in .the . general fund balances. : Conseq.u.ently~ these reserved funds are not available for appropr1ation~. . .. .. . . General. fund inventones..consist of stationery. 'Equipment services f1;1nd invent~ry c~nsis~ of ti;e~.:batteries, te~ti~g ~quipmen.t, a~tomotive parts, an~ small tools: ... .. . .... . ' : : H. Properly raXes. . . Property taxes attach ~s an enforceable. lien on.:P!"operty as of January 1; an'd are .collected-for a 12- month; period effective July lby the. San Mateo County tax collector.. T~es are billed .once a year in late October and are payable in ,two equal installments due. ~y Decembei:l0 an,d AprillOofthe follO\\'ing , , year.. The taxes not paid by toose dates. are s~bject to a penalty of lO~.: . 'In. September of 1993, the..County ~f. SaTlMateoBoarCI: of Sup~isors' ad~pt~d the. "Te~tei Plan" for .. secured property.taxe.s.. Under the Teeter Plan, the :state law allows the county to advance to the cities all property .taxes billed., regardless of whether "the: taxes have been. paid. The .county then is ,entitled to keep. all penalties and. interest: accruing on "cieli,nquenytaies" Property taxes .on unsecured taxable property are not affected:by this :change. ; ; . . ,'...,' .:....:.. .. . . ." . . . .., . .. :. ':. .. ',.:: .. . UnderPropositio~ 13; adopted by the voters in a statewide ballot in 1978. assessed value is increased by the cost of living: index,- n01"to.: exceed 2% .as of January 1 each year except for those properties that have . changed O\lffiefship during the 12 month .period .:since the . lien date~ City property tax revenues are recognized when levied' to the extent that they result.irt current receivabl~s>:. . . . . . . .. . ...... . .. '. '! . '. '.' '1' . I. . ClnbiIled Sen,iceRece1vabieS. . . .' . . . .. .In the, .water and. sewer utHiiies; .,i'.esidential .customers: : are: billed bi~monthly and all commercial: and industrial customers monthly.. Revenue. is recorded as billed to customers on a: cyclical basis. No accrual . is :ffiade for unbilled services.. There were no unbilied services in Port,. parking, or internal service funds as of June 30, 200.8.. There is no accrual for unbilled water services .as of June 30, 2008; revenues cannot be recognizedsjrice water meters are not-Tead a~ such date.' Mana.gement believes that the revenue from unbilled services do.es not have a material effec(ori total revenue.... . . ., ; .. . . ~34 .. ".;