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<br />-5- <br />Both of the government-wide financial statements distinguish functions of the City that are principally <br />supported by taxes and intergovernmental revenues (governmental activities) from other functions that are <br />intended to recover all or a significant portion of their costs through user fees and charges (business-type <br />activities). The governmental activities of the City include general government, public safety, public <br />works, parks and recreation, and economic development. The business-type activities of the City include <br />water, sewer, surface water management, and recycling. <br /> <br />The government-wide financial statements can be found in the financial section following this report. <br /> <br />Fund Financial Statements – A fund is a grouping of related accounts that is used to maintain control <br />over resources that have been segregated for specific activities or objectives. The City, like other state and <br />local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal <br />requirements. All of the funds of the City can be divided into two categories: governmental funds and <br />proprietary funds. <br /> <br />Governmental Funds – Governmental funds are used to account for essentially the same functions <br />reported as governmental activities in the government-wide financial statements. However, unlike the <br />government-wide financial statements, governmental funds financial statements focus on near-term <br />inflows and outflows of spendable resources, as well as on balances of spendable resources available at <br />the end of the fiscal year. Such information may be useful in evaluating a City’s near-term financing <br />requirements. <br /> <br />Because the focus of governmental funds is narrower than that of the government-wide financial <br />statements, it is useful to compare the information presented for governmental funds with similar <br />information presented for governmental activities in the government-wide financial statements. By doing <br />so, readers may better understand the long-term impact of the government’s near-term financing <br />decisions. Both the governmental funds Balance Sheet and Statement of Revenues, Expenditures, and <br />Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental <br />funds and governmental activities. <br /> <br />The City maintains four individual major governmental funds. Information is presented separately in the <br />governmental funds Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund <br />Balances for the General; EDA Operating; Equipment, Building, and Replacement; and Permanent <br />Improvement Revolving Funds, which are considered to be major funds. <br /> <br />Data from all other governmental funds are combined into a single, aggregated presentation. Individual <br />fund data for each of these nonmajor governmental funds is provided in the form of combining statements <br />elsewhere in this report. <br /> <br />The City adopts an annual appropriated budget for its General Fund and special revenue funds. A <br />budgetary comparison schedule has been provided for these funds to demonstrate compliance with this <br />budget. <br /> <br />The basic governmental funds financial statements can be found in the financial section of this report <br />immediately following the government-wide financial statements.