Laserfiche WebLink
<br />NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) <br /> <br />Budgeted amounts are as originally adopted, or as amended by the City Council during the fiscal year. <br />Individual amendments were not material in relation to the original appropriations. <br /> <br />All unexpended appropriations lapse at the end of the fiscal year. Appropriations for capital projects <br />carried over or encumbered are re-appropriated and carried over in the following year's budget. <br /> <br />F. <br /> <br />Compensated Absences <br /> <br />In compliance with Governmental Accounting Standards Board Statement No. 16, the City has <br />established a liability for accrued sick leave and vacation in relevant funds. For governmental activities, <br />the current liability appears in the respective funds and the long-term liability appears in the government- <br />wide financial statements. This liability is set up for the current employees at the current rates of pay. An <br />employee may accumulate vacation up to two years entitlement and sick leave up to 960 or 1,200 hours <br />depending on the bargaining unit (Fire Department employees who work 24 hour shifts may accumulate <br />up to 1,920 hours of sick leave). If sick leave and vacation are not used by the employee during the term <br />of employment, compensation is payable to the employee at the time of retirement. Such compensation is <br />calculated at the employee's prevailing rate at the time of retirement or termination. Whereas vacation is <br />compensated at 100% of accumulated hours, sick leave is compensated at 50% of accumulated hours at <br />retirement depending upon varying restrictions of the bargaining units. Upon termination only accrued <br />vacations are compensated. Each year an adjustment to the liability is made based on pay rate changes <br />and adjustments for the current portion. The general fund is primarily responsible for the repayment of <br />the governmental portion of the compensated absences. Individual proprietary funds are responsible for <br />the repayment of the liability attributable to their respective funds. <br /> <br />G. <br /> <br />Cash and Cash Equivalents <br /> <br />F or the purpose of the statements of cash flows for all proprietary fund types (enterprise and internal <br />service funds), the City considers cash equivalents to be all highly liquid investments with a maturity of <br />three months or less when purchased. <br /> <br />H <br /> <br />Inventories <br /> <br />Inventories are stated at moving average cost. The cost is recorded as an expenditure at the time an <br />individual inventory item is consumed. As inventories must be maintained at a certain level, a reserve for <br />inventories is set aside in the general fund balances. Consequently, these reserved funds are not available <br />for appropriation. <br /> <br />General fund inventories consist of stationery, janitorial supplies, electrical supplies, switches, building <br />maintenance supplies, fertilizers, seeds, and small tools. <br /> <br />Water fund inventory consists of water meters, water pipes, valves and fittings, and small tools. <br /> <br />Equipment services fund inventory consists of tires, batteries, testing equipment, automotive parts, and <br />small too Is. <br /> <br />L <br /> <br />Property Taxes <br /> <br />Property taxes attach as an enforceable lien on property as of January 1, and are collected for a 12 month <br />period effective July 1 by the San Mateo County tax collector. Taxes are billed once a year in late <br />October and are payable in two equal installments due by December 10 and April 10 of the following <br />year. The taxes not paid by those dates are subject to a penalty of 10%. <br /> <br />30 <br />