Laserfiche WebLink
FUND STRUCTURE AND BUDGET BASIS <br />The financial structure of City of Gem. Lake is similar to other governments with the use of funds. <br />Funds are: the. control structures that ensure that public moneys are spent only for those purposes <br />authorized and within amounts authorized. Funds are. established to account for different types of <br />activities and legal restrictions. that are associated with a particular government function. The <br />Governmental Accounting. Standards Board (GASB) defines a fund as: <br />A fiscal and accounting entity with a self -balancing set of accounts recording cash and other <br />financial resources, together with all related liabilities and. residual equities or balances, and <br />changes therein, which are segregated for the purpose of carrying on. specific activities or <br />attaining certain objectives in accordance with special regulations, restrictions, or limitations. <br />All of the funds. Used by the City.must be classified into one of seven "fund types. Four of these fund <br />types are used to account for the City's "governmental -type" activities and are known as "governmental <br />funds:" Two of these fund types are used to account fora government's "business-typen activities and <br />are known as."proprietary funds." Finally, the seventh fund type is reserved for a government's <br />'`fiduciary activities." The City currently does not operate.any fiduciary activities. <br />Governmental Fund types are used to account for governmental -type activities. These:are the <br />General Fund, Special. Revenue Funds, Debt. Service Funds, and Capital Projects Funds. <br />The General Fund is used to account for most of the day-to-day operations of the City, which are <br />financed from property taxes and other general revenues. Activities financed by the General Fund are <br />those not accounted for in other funds. There can only be one. General Fund. <br />t <br />Special Revenue Funds are used to account for revenues derived from specific taxes or other <br />.earmarked revenue sources which, by law,. are designated to finance particular functions or activities of <br />the City and which therefore cannot be diverted to other uses. The Special Revenue Funds the City <br />operates are. the Park and Playground Fund, which was established to purchase and develop parks <br />and trails in the.City through the collection. of park dedication fees on new developments or building <br />permits and new for 2g15 is a fund to account for possible grants the City may apply for to help <br />redevelop its commercial district. <br />Debt Service Funds are used to account for the payment of interest and principal on. general and. <br />special obligation debts other than debt.issued for and serviced by a governmental enterprise. <br />The Capital Projects Funds account for all resources used for the acquisition and/or construction of <br />capital equipment and facilities except those financed by Enterprise and Internal Service Funds. <br />Two Proprietary Fund Types are used to.account.for the City's business -type activities. These are <br />the Enterprise Funds and the Internal Service Funds. <br />The City's only Enterprise Fund is the Sewer Operating. Fund.. This fund is used to account for the <br />.acquisition, operation and maintenance of these facilities and services, which are entirely or <br />predominantly self -supported, by user:charges. The operations. of the Sewer Operating Fund are <br />accounted. for in such a manner as to show a profitar loss similar to private enterprises. <br />Internal Service Funds are used to account for the financing of.goods and services provided by one <br />department to other departments of the City, on a cost -reimbursement basis. The City of Gem Lake <br />does not have any Internal Service Funds. <br />3 <br />