village of wellington, florida

NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)Fund Equity (Continued)Designated for insurance – represents funds set aside to offset future years’ insurance premium increases.Designated for disaster recovery – represents funds set aside for future emergency and disaster recovery.Designated for road maintenance – represents funds set aside for future maintenance of Village ownedroads.Designated for rate stabilization – represents funds set aside to offset future years’ property tax rateincreases.Interfund TransactionsActivity between funds that is representative of lending/borrowing arrangements outstanding at the end ofthe fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfundloans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). All otheroutstanding balances between funds are reported as “due to/from other funds”. Any residual balancesoutstanding between the governmental activities and business-type activities are reported in thegovernment-wide financial statements as internal balances.Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserveaccount in the applicable governmental funds to indicate that they are not available for appropriation andare not expendable available financial resources.Property TaxesUnder Florida law, the assessment of all properties and the collection of all county, municipal, school board,and special district property taxes are consolidated in the offices of the county Property Appraiser andcounty Tax Collector, respectively. All property is reassessed according to its fair market value on January 1of each year and each assessment roll is submitted to the State Department of Revenue for review todetermine if the assessment roll meets all of the appropriate requirements of State law. The Village Charterpermits it to levy property taxes at a rate of up to 5 mills.The millage rate assessed by the Village for the 2008/2009 year was 2.34 ($2.34 for each $1,000 of assessedvaluation). This levy was based upon an assessed valuation as of January 1, 2008, of approximately $7.4billion.Taxes may be paid less a 4% discount in November or at declining discounts each month through themonth of February. All unpaid taxes become delinquent on April 1 st following the year in which they areassessed. Delinquent taxes on real property bear interest at 18% per year. On or prior to June 1 st followingthe tax year, certificates are offered for sale for all delinquent taxes on real property.After sale, tax certificates bear interest at 18% per year or at any lower rate bid by the buyer. Applicationfor a tax deed on any unredeemed tax certificate may be made by the certificate holder after a period of twoyears. Unsold certificates are held by the County. Delinquent taxes on personal property bear interest at18% per year until the tax is satisfied either by seizure and sale of the property or by the five-year statute oflimitations. At September 30, 2009, unpaid delinquent taxes are not material and have not been recorded bythe Village.During 2007 the Florida Legislature passed property tax reform legislation limiting the property tax levies oflocal government in the State of Florida. For the fiscal year ending September 30, 2009, the maximum taxlevy allowed by a majority vote of the governing body is based on a percentage reduction applied to thechris36