CCP 05-15-2006 - Laserfiche WebLink

Home Browse Search

CITY OF ARDEN IDLLS, MINNESOTA NOTES TO mE FINANCW. STATEMENTS DECEMBER 31 2005 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED The City reports the following major governmental fundsl n. . The Generalfund 15 the Clty's pnmary operatmg f$d, . 0 except those required to be accounted for in anothe~ fund, FI,' ",,,,I"I'eSmITce <"!he . The Economic Development Authority fund aCcollllts for revenue sources that are legally restricted to expendimres for specified pUlposes (uot including major capital projects). The Tax Increment Bonds of 1998Afund accounts for the accumulation ofresoUTces and payment of general obligation bond principal and interest from governmental reSOUTces and special assessment bond principal and interest from special assessment levies when the City is obligated in some manner for the payment. The Permanent Improvement Revolvingfund accounts for the acquisition affIxed assets or construction for tbis major capital project not being fmanced by proprietary funds, The City reports the following major proprietary funds: The Water fund accounts for costs associated v..rith the City's water system and insure that user charges are sufficient to pay for those costs. The Sewer fund accounts for the costs associated with the City's sewer system and insure that user charges are sufficient to pay for those costs. The Recyclingfund accounts for costs associated with the City's recycling operations and insure that us.er charges are sufficient to pay for those costs. . The Surface Water ManagementfUnd accounts for costs associated "With the City's storm water system and insure that user charges are sufficient to pay for those costs. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the gove=ent,wide and proprietary fund fmaneia! statements to the extent that those standards do not conflict with or contradict guidance ofGASB, Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance, As a general rule the effect ofinterfund activity has been eliminated from government-wide fmancial statements, Exceptions to this general rule are payments-ill-lieu of taxes and other .charges between the City's water and sewer function and various otber functions of the City, Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contribution, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Like"Wise, general revenues include all taxes. 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 City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. . When both restricted and umestricted resources are available for use, it is the City's policy to use restricted resources fIrst, then unrestricted resources as they are needed. -25-