HomeMy WebLinkAboutNC Comprehensive Report (Finance) (40)CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
N. Net Assets
In the government -wide financial statements, net assets are classified in the
following categories:
Invested in Capital Assets, Net of Related Debt - This amount consists of capital
assets net of accumulated depreciation and reduced by outstanding debt that
attributed to the acquisition, construction, or improvement of the assets.
Restricted Net Assets - This amount is restricted by external creditors, grantors,
contributors, laws or regulations of other governments.
Unrestricted Net Assets - This amount is all net assets that do not meet the
definition of "invested in capital assets, net of related debt" or "restricted net
assets."
O. Property Taxes
The City has elected, by ordinance, that the duties of assessing and collecting
property taxes be performed by the San Diego County Assessor and Tax
Collector, respectively. Tax levies cover the period from July 1 to June 30 of each
year. All tax liens attach annually on the first day in March preceding the fiscal
year for which the taxes are levied. Taxes are levied on both real and personal
property as it exists on that date.
Secured property taxes are levied against real property and are due and payable in
two equal installments. The first installment is due on November 1 and becomes
delinquent if not paid by December 10. The second installment is due on
February 1 and becomes delinquent if not paid by April 10. Unsecured personal
property taxes are due on July 1 each year. These taxes become delinquent if not
paid by August 31.
The City records property tax revenues in the fiscal year to which they relate
rather than at the related lien date.
P. Community Development Commission Rental Revenue
Rental revenues received from tenants in the CDC's Morgan Towers Housing
Project (an enterprise fund) are subsidized with Federal government funds under a
Section 8 contract with the U.S. Department of Housing and Urban Development
(HUD). The rent subsidy received from HUD is equal to the excess of the fair
market rent of the apartment units over the amounts paid by the tenants. The
amounts paid by the tenants are subject to certain Section 8 eligibility
requirements and application procedures.
32