Page 73 - Hudson City Schools CAFR 2017

HUDSON CITY SCHOOL DISTRICT
SUMMIT COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2017

NOTE 4 - INTERFUND TRANSACTIONS - (Continued)

Interfund transfers between governmental funds are eliminated on the government-wide financial
statements. All transfers were made in compliance with Ohio Revised Code Sections 5705.14,
5705.15 and 5705.16.

NOTE 5 - PROPERTY TAXES

Property taxes are levied and assessed on a calendar year basis while the District fiscal year runs from July
through June. First half tax collections are received by the District in the second half of the fiscal year.
Second half tax distributions occur in the first half of the following fiscal year.

Property taxes include amounts levied against all real property and public utility property. Real property
tax revenues received in calendar year 2017 represent the collection of calendar year 2016 taxes. Real
property taxes received in calendar year 2017 were levied after April 1, 2016, on the assessed values as of
January 1, 2016, the lien date. Assessed values for real property taxes are established by State statute at 35
percent of appraised market value. Real property taxes are payable annually or semiannually. If paid
annually, payment is due December 31; if paid semiannually, the first payment is due December 31, with
the remainder payable by June 20. Under certain circumstances, State statute permits alternate payment
dates to be established. Public utility property tax revenues received in calendar year 2017 represent the
collection of calendar year 2016 taxes. Public utility real and personal property taxes received in calendar
year 2017 became a lien on December 31, 2015, were levied after April 1, 2016, and are collected with real
property taxes. Public utility real property is assessed at 35 percent of true value; public utility tangible
personal property is currently assessed at varying percentages of true value.

The District receives property taxes from Summit County. The County Fiscal Officer periodically
advances to the District its portion of the taxes collected. Second-half real property tax payments collected
by the County by June 30, 2017, are available to finance fiscal year 2017 operations. The amount available
as an advance at June 30, 2017 was $4,852,223 in the general fund and $141,592 in the permanent
improvement fund (a nonmajor governmental fund). This amount is recorded as revenue. The amount
available as an advance at June 30, 2016 was $8,893,330 in the general fund and $269,820 in the
permanent improvement fund (a nonmajor governmental fund). The amount of second-half real property
taxes available for advance at fiscal year-end can vary based on the date the tax bills are sent.

Accrued property taxes receivable includes real property, public utility property and delinquent tangible
personal property taxes which are measurable as of June 30, 2017 and for which there is an enforceable
legal claim. Although total property tax collections for the next fiscal year are measurable, only the amount
of real property taxes available as an advance at June 30 was levied to finance current fiscal year operations
and is reported as revenue at fiscal year end. The portion of the receivable not levied to finance current
fiscal year operations is offset by a credit to deferred inflows.

On the accrual basis of accounting, collectible delinquent property taxes have been recorded as a receivable
and revenue, while on a modified accrual basis of accounting the revenue has been reported as a deferred
inflow of resources.

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