b'City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2018 Budgetary ProcessAllfundsarelegallyrequiredtobebudgetedandappropriated.Therewasnobudgetadoptedforthe nonmajor law enforcement block grant special revenue fund in 2018 as there was no budgetary activity for 2018.The major documents prepared are the tax budget, the certificate of estimated resources, and the appropriations resolution, all of which are prepared on the budgetary basis of accounting.The tax budget demonstrates a need for existing or increased tax rates.The certificate of estimated resources establishes a limit on the amount Council may appropriate.The appropriations resolution is Councils authorization to spend resources and sets annual limits on expenditures plus encumbrances at the level of control selected by Council.ThelegallevelofcontrolhasbeenestablishedbyCouncilattheobjectlevelwithineach department.Any budgetary modifications at this level may only be made by resolution of City Council.The certificate of estimated resources may be amended during the year if projected increases or decreases in revenue are identified by the City Auditor.The amounts reported as the original and final budgeted amounts on the budgetary statements reflect the amounts on the amended certificate of estimated resources in effect at the time original and final appropriations were passed by Council.Theappropriationresolutionissubjecttoamendmentthroughouttheyearwiththerestrictionthat appropriations cannot exceed estimated resources.The amounts reported as the original budgeted amounts reflectthefirstappropriationresolutionforthatfundthatcoveredtheentireyear,includingamounts automaticallycarriedforwardfromprioryears.Theamountsreportedasthefinalbudgetedamounts represent the final appropriation amounts passed by Council during the year. Note 3Changes in Accounting Principles and Restatement of Net PositionFor fiscal year 2018, the City implemented Governmental Accounting Standards Board (GASB) Statement No.85,Omnibus2017,StatementNo.89,AccountingforInterestCostIncurredbeforetheEndofa Construction Period, Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions, and related guidance from (GASB) Implementation Guide No. 2017-3, Accounting and Financial Reporting for Postemployment Benefits other Than Pensions (and Certain Issues Related to OPEB Plan Reporting). For2018,theCityalsoimplementedtheGovernmentalAccountingStandardsBoards(GASB) Implementation Guide No. 2017-1.These changes were incorporated in the Citys 2018 financial statements; however, there was no effect on beginning net position/fund balance.GASB 85 addresses a variety of topics including issues related to blending component units, goodwill, fair valuemeasurementandapplication,andpostemploymentbenefits(pensionsandotherpostemployment benefits(OPEB)). ThesechangeswereincorporatedintheCitysfiscalyear2018financialstatements; however, there was no effect on beginning net position/fund balance.GASB 89 establishes accounting requirements for interest cost incurred before the end of a construction period.These changes were incorporated in the Citys 2018 financial statements; however, there was no effect on beginning net position.GASB 75 established standards for measuring and recognizing Postemployment benefit liabilities, deferred outflows of resources, deferred inflows of resources and expense/expenditure.The implementation of this pronouncement had the following effect on net position as reported December 31, 2017:- 41 42 -'