Laserfiche WebLink
CITY OF SOUTH BEND, INDIANA <br />NOTE TO GENERAL-PURPOSE FINANCIAL STATEMENTS <br />(Continued) <br />proceeds received, are reported as debt service expenditures. For proprietary fund types, <br />bonds payable are reported net of applicable bond premium or discount. Issuance costs are <br />reported as deferred charges and are amortized over the life of the bonds using the straight-line <br />method. Bond premiums and discounts are amortized to interest expense over the life of the <br />bonds using the straight-line method. <br />N ~ Fund Equity <br />Reserves represent those portions of the fund equity not appropriable for expenditures or legally <br />segregated for a specific future use. Designated fund balances represent tentative plans for <br />future use of financial resources. The City has elected to reduce the contribution account for <br />depreciation expense on assets acquired through contributed capital for the Parking Garage and <br />the Century Center, both enterprise funds. <br />D. Totals Memorandum Dnly} <br />The Totals columns on the financial statements are captioned "Memorandum Dnly" to indicate <br />that they are presented only to facilitate financial analysis. Data in these columns do not present <br />financial position, results of operations or statement of cash flows in conformity with generally <br />accepted accounting principles. Neither are such data comparable to a consolidation. Interfund <br />eliminations have not been made in the aggregation of this data. <br />Note 2, Legal Compliance -Budgets <br />The City fellows these procedures in establishing the budgetary data reflected in the f nancial state- <br />ments: <br />A. The Mayor submits to the Common Council a proposed operating budget for the fiscal year <br />commencing the following January ~ . The operating budget includes proposed expenditures <br />and the means of financing them. <br />B, Prior to adoption, the budge# is advertised and public hearings are conducted by the Common <br />Council to obtain taxpayer comments. <br />C. In September of each year, the Common Council approves the budget for the next year through <br />the passage of an ordinance. <br />D. Copies of the budget ordinance and the advertisements for funds for which property taxes are <br />levied or highway use taxes are received are sent to the Indiana Department of Local Finance. <br />The budget becomes legally enacted after the City Controller receives approval of the Indiana <br />Department of Local Finance. The City's maximum tax levy is restricted by Indiana Law, with <br />certain adjustments and exceptions. If the advertised budget, for funds for which property taxes <br />are levied or for which highway use taxes are received, exceeds the spending and tax limits of <br />the state control laws, an excess levy may be granted by the Indiana Department of Local <br />Finance upon appeal by the City. <br />20 <br />