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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) <br />D. Assets, Liabilities and Net Assets or Equity <br />Deposits and Investments <br />The City's cash and cash equivalents are considered to be cash on hand, certificates of <br />deposit, investment securities with a maturity of three months or less from the date of <br />purchase. <br />Statutes authorize the City to invest in obligations of U. S. Treasury or its agencies and <br />instrumentalities, obligations of the state or its agencies, other investments guaranteed by the <br />U. S. Treasury or the State of Texas, or investments rated by a national rating company at <br />"A" or better. The City is also authorized to invest in fully collateralized repurchase <br />agreements, local government investment pools, and in certificates of deposit issued by banks <br />domiciled in Texas that are FDIC insured or have securities (of aforementioned quality) <br />pledged to secure these deposits. The investment of idle funds has been restricted to U. S. <br />Government Treasury and agency securities and time deposits with the City's depository <br />banks. <br />Investments for the City are reported at fair value. The State Treasurer's Investment Pool <br />operates in accordance with appropriate state laws and regulations. The reported value of the <br />pool is the same as the fair value of the pool shares. <br />Receivables and Payables <br />Activity between funds that are representative of lending /borrowing arrangements <br />outstanding at the end of the fiscal year are referred to as "due to /from other funds" (i.e., the <br />current portion of interfund loans). Any residual balances outstanding between the <br />governmental activities and business -type activities are reported in the government -wide <br />financial statements as "internal balances." <br />All trade and property tax receivables are shown net of an allowance for uncollectibles. <br />Trade accounts receivable in excess of 180 days comprise the trade accounts receivable <br />allowance for uncollectibles. The property tax receivable allowance is equal to 9.0 percent of <br />outstanding property taxes at September 30, 2007. <br />Property taxes are levied on October 1 and attach as an enforceable lien on property as of <br />January 1. Statements are mailed on October 1, or as soon thereafter as possible, and are due <br />upon receipt. All unpaid taxes become delinquent if not paid before February 1 of the <br />following year. <br />(continued) <br />29 <br />