Agenda Packets - 2024/05/13 - Laserfiche WebLink

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NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Recording of Expenditures — Expenditures are generally recorded when a liability is incurred, except for principal and interest on long-term debt and other long-term obligations, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as capital outlay expenditures in the governmental funds. Proprietary fund financial statements are reported using the economic resources measurement focus and accrual basis of accounting, similar to the government -wide financial statements. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds are charges to customers for sales and services. The operating expenses for the enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses that do not meet this definition are reported as nonoperating revenues and expenses. Description of Funds The City reports the following major governmental funds: General Fund — This fund is the City's primary operating fund. It accounts for all financial resources of the general government except those required to be accounted for in another fund. Economic Development Authority Special Revenue Fund — This fund accounts for transfers from the General Fund, tax increment funds, a tax levy, and expenditures for economic development activities of the Economic Development Authority. Community Center Special Revenue Fund — This fund accounts for the operation of the City's community center. Tax Increment Financing District No. 5 Special Revenue Fund — This fund accounts for tax increments collected from properties within the district that are used to retire the developer note. Vehicle and Equipment Capital Projects Fund — This fund accumulates resources for the eventual replacement of city vehicles and equipment. Special Projects Capital Projects Fund — This fund finances the construction of city buildings, park improvements, and some transportation projects, except any accounted for in the proprietary funds. The main funding source has been periodic transfers of surpluses from the General Fund. Street Improvement Capital Projects Fund — This fund is used to account for the construction and major repair of city streets as part of the City's street improvement program. The City reports the following major proprietary funds: Water Fund — This fund accounts for the activities associated with providing water service to city residents and businesses. Services are paid for by user fees. Sewer Fund — This fund accounts for the activities associated with providing sanitary sewer service to city residents and businesses. Services are paid for by user fees. Storm Water Fund — This fund accounts for the construction and maintenance of storm water facilities. Utility fees are charged on the quarterly utility bill and impact fees are charged on new development of land. Street Light Fund (nonmajor) — This fund accounts for the activities associated with providing streetlight services to city residents and businesses. Services are paid for by user fees. 101