CCP 05-22-2006 - Laserfiche WebLink

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Management Discussion and Analysis - Continued April 14,2006 . The government~wide financial statements include not only the City itself (known as the primar}' government)l but also a legally separate Eeonorrllc Development Authority (EDA) for which the City is fmaneially accountable. The EDA, although legally separate, functions for all practical purposes as a department of the City, and therefore has been included as an integral part of the primary government. The government-wide jinancial statements can be found on pages 4 - 6 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other State and local governments, uses fund accounting to ensure and demonstrate compliance with fmance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary f1illds. Governmental funds. Governmental fUnds are used to account for essentially the same functions reported as governmental activities in the government-wide fmancial statements. However, unlike the government-wide fwancial statements, governmental fund fmancial statements focus on near-term inflows and OUlj7ows of spendable resources, as well as on balances of spendable resources available at the end ofthe fiscal year. Such information may be useful in evaluating a governmenCs near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented fOT governmental funds with similar information presented for governmental activities in the gllvernment-wide fmanciaI statements. By doing so, readers may better understand the long~tcrm impact by the government's near-term financing decisions. Both the governmental fund balance sheet and the goverrunental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate tills comparison between governmental funds and governmental activities. eThe City maintains 13 individual governmental funds. Information is presented separately in the governmental fund balance sbeet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General fund, Tax Increment Bonds of 1998A, Economic Development Authority and tbe Permanent Improvement Revolving fund, all of which are considered to be major funds. Data from the other 9 governmental funds are combined into a single~ aggregated presentation. individuai fund data for each of these nonmajor governmental funds is provided in the [(HID of combining statements or schedules elsewhere in this report. The City adopts an annual appropriated budget for all funds. A budgetary comparison statement has been provided for tbe General fund to demonstrate compliance with thls budget. The basic govenunental fund fmancial statements can be found on pages 7 - 14 ofthls report. Proprietary funds. The City maintains one type of proprietary fimd. Enterpn.se funds arc used to report the same functions presented as business-type activities in the govemment-vvide financial statements. The City uses enterprise funds to account for water, sewer, recycling and surface water management activities_ Proprietary funds provide the same type of information as the government-wide financial statements, only in morc detail. The proprietary fund fInancial statements provide separate information for the water, sewer, recycling and surface water management funds, all of which are considered to be major funds of the City. The basic proprietary fund financial statements can be found on pages 15 - 38 of this report. . -lV-