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City of San Leandro <br />Notes to Basic Financial Statements <br />For the year ended June 30, 2012 <br /> <br /> <br />52 <br /> <br />NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES, Continued <br /> <br />I. Long-Term Debt <br /> <br />In Government-Wide Financial Statements, long-term debt and other financed obligations are reported as liabilities in <br />the appropriate activities. <br /> <br />Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using <br />the effective interest method. Bonds Payable are reported net of the applicable premium or discount. Issuance costs <br />are reported as deferred charges and amortized over the term of the related debt. <br /> <br />In Fund Financial Statements long-term debt is not presented but is instead shown in the Reconciliation of the <br />Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets. <br /> <br />J. Compensated Absences <br /> <br />Vested vacation, sick leave, compensatory time, and related benefits are accrued as appropriate. For governmental <br />funds, compensated absence obligations are recorded in the appropriate governmental funds when due. The portion <br />not currently due is recorded in the government-wide financial statements. For enterprise funds, compensated <br />absences are expensed when earned by employees. At year-end, the accrued but unpaid compensated absence <br />obligations are recorded as current and non-current liabilities in the appropriate enterprise funds. <br /> <br />K. Property Taxes <br /> <br />Property taxes are liened on January 1st for the following fiscal year. Taxes are payable in two installments, due on <br />November 1 and February 1, becoming delinquent on December 10 (for November) and April 10 (for February), <br />respectively. The Alameda County Tax Collector bills and collects property taxes and allocates a portion to the City as <br />billed. Property tax revenues are recognized in the fiscal year, for which the taxes have been levied, provided they <br />become available. In January, 1994, the City elected to continue collection of interest and penalties on delinquent <br />taxes and recognizes these revenues when available. Available means when due or past due and collected within the <br />current period, or expected to be collected soon thereafter, and to be used to pay liabilities of the current period. <br /> <br />L. Use of Estimates <br /> <br />The preparation of financial statements in conformity with generally accepted accounting principles requires City <br />management to make estimates and assumptions that affect certain amounts and disclosures. Accordingly, actual <br />results could differ from those estimates. <br /> <br />M. New Funds, Renamed Funds and Closed Funds <br /> <br />During 2011-12, the City opened the following new funds: <br /> <br />The Affordable Housing Asset Fund was established to account for the activities related to the assets assumed <br />by the City as Housing Successor to the housing activities of the former Redevelopment Agency of the City of <br />San Leandro. <br /> <br />Measure F -This fund accounts for the City’s share of proceeds on a $10 increase in Vehicle Registration fees <br />originally approved by the voters in November 2010. This fund accounts for the Measure F funding for <br />additional Local Road Improvement and Repair, Transit for Congestion Relief, Local Transportation <br />Technology, and Pedestrian and Bicyclist Access and Safety Program This program is administered by the <br />Alameda County Transportation Commission.