Funds and Groups

Fund Accounting

The City's accounting system is organized and operated on the basis of funds and account groups, each of which is considered a separate reporting entity. The operation of each fund is accounted for within a separate set of self balancing accounts recording cash and other financial resources, together with all related liabilities, balances, and changes. These are segregated for the purposes of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. The City uses the following fund types of account groups: 

 

Government Funds

Governmental funds are those through which most governmental functions typically are financed. The acquisition, use, and balances of the City's expendable financial resources and the related current liabilities (except those accounted for in proprietary and fiduciary funds) are accounted for through governmental funds. The measurement focus is upon determination of financial position and changes in financial position. The following are the City's governmental fund types: 

  • General Fund: To account for all financial resources except those required to be accounted for in another fund. It is the general operating fund of the City.
  • Special Revenue Funds: To account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes.
  • Debt Service Fund: To account for the accumulation of resources for, and the payment of, general and special assessment long-term debt principal and interest.
  • Capital Project Funds: To account for financial resources to be used for the construction or acquisition of capital facilities, other than those financed by proprietary and trust funds.

 

Proprietary Funds

The proprietary funds are used to account for the City's ongoing organizations and activities which are similar to those found in the private sector. The measurement focus is upon determination of net income or (loss), financial position, and changes in cash flows. The following are the City's proprietary fund types: 

  • Enterprise Funds: To account for operations that are financed and operated in a manner similar to private business enterprises. The intent is that the cost of providing goods or service to the general public on a continuing basis be financed or recovered through user charges.
  • Internal Service Funds: To account for the financing of goods or services provided by one department of the City to another department on a cost reimbursement basis.

 

Fiduciary Funds

Trust and agency funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments, and/or other funds. The City's fiduciary funds are: 

  • Expendable Trust Funds: To be accounted for in essentially the same manner as governmental funds.
  • Agency Funds: Purely custodial in nature, assets equal liabilities, and does not involve the measurement of results of operation.

 

Account Groups

To make clear distinction between fixed assets related to specific funds and those of general government, and between long-term liabilities related to specific funds and those of a general nature, the following account groups are used. 

  • General Fixed Assets Account Group: The general fixed assets account group is used to account for fixed assets other than those accounted for in the proprietary funds or trust funds.
  • General Long-Term Obligations Account Group is used to account for all un-matured long-term obligations of the City that are not a specific liability of the proprietary funds.