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NOTES TO THE FINANCIAL STATEMENTS (Continued) 2B. Fund Deficits. At June 30, 1993, the Communications Services, Engineering Services and Self-Insurance Internal Service Funds had retained earnings deficits of$1,429, $106,084 and$8,339,524 respectively. The fund deficit in the Communications Services and Engineering Services Funds will be recovered in the next fiscal year through increased service charges. The fund deficit in the Self-Insurance Fund is primarily attributable to shortfalls in charges made to the City's operating departments. Management implemented a 12.5% increase in charges to the City's operating departments to reduce this shortfall during fiscal year 92-93. Working capital in the Self-Insurance Fund was sufficient to cover 70% of the present value of outstanding losses at June 30, 1993. The City continues to generate sufficient annual revenue in the fund to cover insurance premiums, benefit payments, and paid losses for the given fiscal year. 2C. Budgetary Compliance. All expenditures were within the legally prescribed limits as approved by the City Council. Note 3. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS 3A. Property Tax Calendar. Property taxes are assessed and collected each fiscal year based on the following property tax calendar: Lien date March 1 Levy date March 1 Due Dates November 1 - 1st Installment March 1 -2nd Installment Collection dates December 10 - 1st Installment April 10 - 2nd Installment A State constitutional amendment Proposition 13 (now Article XIIIA to the Constitution) effective July 1, 1978, altered the method of property tax assessment. This amendment essentially reduces the total property tax levy to one percent of full cash value on the 1975-76 assessment, adjusted upward the lesser of the increase in CPI or per capita income indices or two percent compounded for each succeeding year, except that property changing ownership subsequent to July 1, 1978 and improvements are reassessed at the time of the exchange or improvement and adjusted each year thereafter at the appropriate rate. As previously explained in Note 1C, property taxes are reported on a modified accrual basis. Accordingly, they are recognized as levied provided they meet this accrual criteria. Property taxes not meeting the accrual criteria are deferred until received or otherwise meet the criteria. At June 30, 1993, $3,145,893 is included under the caption "Taxes Receivable" of which $892,615 was accrued in revenue and $2,253,278 was deferred.