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FUND STRUCTURE AND BUDGET BASIS. The financial structure of City of Gem Lake is similar to other governments with the use of funds. Funds are the control structures that ensure that public moneys are spent only for those purposes authorized and within amounts authorized. Funds.are established to account for different types of activities and legal restrictions that are associated with a particular government function. The Governmental Accounting Standards Board (GASB) defines a fund as, A fiscal and accounting entity with a self -balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual.equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. All of the. funds used by the City must be classified into one of.seven "fund types." Four of these fund types are used to account. for the City's "governmental -type" activities and are known. as "governmental funds." Two of these fund types are used to account for a government's "business -types activities and are known as "proprietary funds." .Finally, the seventh fund type is reserved for a government's "fiduciary activities." The. City currently.does not operate: any fiduciary activities. Governmental Fund types are used to account for govemmental-type activities. These are the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. The General Fund is used to account for most of the day-to-day operations of the City, which are financed from: property taxes and other general revenues.. Activities .financed by the General Fund.are those not. accounted for in other funds. There can only be one General Fund. Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources, which, by law, ;are designated to finance particularfunctions, or activities of the City and whlch therefore cannot be. diverted to other uses,. The. Special Revenue Funds the City operates are the Park and. Playground Fund, which was established to purchase and.develop parks and trails in the City through the.collection of park dedication fees on new developments or building permits and new for 2015 is.a fund to account for possible..grants the City may apply for to help redevelop its. commercial district. Debt Service Funds are used to account for the payment of interest. and principal on general and special obligation debts other than debt issued for and serviced by a governmental enterprise. The Capital Projects Funds account for all resources used for the acquisition and/or construction of capital equipment and facilities except. those financed by Enterprise and Internal Service Funds. Two Proprietary. Fund Types are used to account for the City's business -type activities. These are the Enterprise Funds and the Internal. ServiceFunds. The City's only Enterprise Fund is the Sewer Operating Fund.. This fund is used to account for the acquisition, operation and maintenance of these facilities and services, which are entirely or predominantly self -supported., by user charges. The. operations of the Sewer Operating Fund are accounted for in such a manner as to show a profit or loss similar to private enterprises.