2004-04-28 WS & CC Meeting - Laserfiche WebLink

Home Browse Search

CITY OF CENTERVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2003 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES - CONTINUED The City reports the following major governmental funds: The generalfund is the governm<mt's primary operating fund. It accounts for all financial resources of the general government, except those reqnired to be accounted for in another fund. The G.O. Improvement Bonds of 2002 fund accounts for the resonrces accnmu1ated and payments made for principal and interest on long-term general obligation debt of the governmental fund. The G.O. Temporary Improvement Bonds of2003 fund accounts for the resources accumn1ated and payments made for principal and interest on long-term general obligation debt of the governmental fund. The Peltier Preserve fund account for the resources to complete the capital project development The City reports the following major proprietary funds: The water fund accounts for the activities of the water distribution system the City maintains. The sewer fund acconnts for the activities of the City's sewage collection operations. Private-sector standards of accounting and financial reporting issued prior to December I, 1989, generally are followed in both the governrnent-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidan<:<! of the Governmental Accounting Standards Board (GASB). Governrnents also bave the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The government bas elected not to follow subsequent private-sector guidan<:<!. As a general rule the effect ofinterfund activity bas been elintinated from government-wide financial statements. Exceptions to this general rule are cbarges between the government's water and sewer function and various other functions of the government Elintination of these cbarges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include I) charges to customers or applicants for gonds, services, or privileges provided, 2) operating grants and contnbution, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, 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 revennes of the City enterprise funds are cbarges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and selVices, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resoUICes first, then unrestricted reso=es as they are needed.