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City of San Leandro <br />Notes to Basic Financial Statements <br />For the year ended June 30, 2013 <br />NOTE 1- SIGNIFICANT ACCOUNTING POLICIES (Continued) <br />I. Long -Term Debt <br />In Government -Wide Financial Statements, long-term debt and other financed obligations are reported as <br />liabilities in the appropriate activities. <br />Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the <br />bonds using the effective interest method. Bonds Payable are reported net of the applicable premium or <br />discount. Issuance costs are reported as deferred charges and amortized over the term of the related debt. <br />In Fund Financial Statements long-term debt is not presented but is instead shown in the Reconciliation <br />of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Position. <br />J. Compensated Absences <br />Vested vacation, sick leave, compensatory time, and related benefits are accrued as appropriate. For <br />governmental funds, compensated absence obligations are recorded in the appropriate governmental funds <br />when due. The portion not currently due is recorded in the government -wide financial statements. For <br />enterprise funds, compensated absences are expensed when earned by employees. At year-end, the <br />accrued but unpaid compensated absence obligations are recorded as current and non-current liabilities in <br />the appropriate enterprise funds. <br />K. Property Taxes <br />Property taxes are liened on January 1st for the following fiscal year. Taxes are payable in two <br />installments, due on November 1 and February 1, becoming delinquent on December 10 (for November) <br />and April 10 (for February), respectively. The Alameda County Tax Collector bills and collects property <br />taxes and allocates a portion to the City as billed. Property tax revenues are recognized in the fiscal year, <br />for which the taxes have been levied, provided they become available. In January, 1994, the City elected <br />to continue collection of interest and penalties on delinquent taxes and recognizes these revenues when <br />available. Available means when due or past due and collected within the current period, or expected to <br />be collected soon thereafter, and to be used to pay liabilities of the current period. <br />L. Use of Estimates <br />The preparation of financial statements in conformity with generally accepted accounting principles <br />requires City management to make estimates and assumptions that affect certain amounts and disclosures. <br />Accordingly, actual results could differ from those estimates. <br />M. Implementation of New GASB Pronouncements <br />GASB Statement No. 60 — In November 2010, the GASB issued Statement No. 60, Accounting and <br />Financial Reporting for Service Concession Arrangements. The objective of this Statement is to <br />improve financial reporting by addressing issues related to service concession arrangements (SCAB), <br />which are a type of public-private or public -public partnerships. The requirements of this Statement <br />are effective for financial statements for periods beginning after December 15, 2011. This Statement <br />had no impact on the City's June 30, 2013 financial statements. <br />50 <br />