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CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC: FINANCIAL STATEMENTS ©ECEMBER 31., 2016 NOTE.'I SUMMARY OF SIGNIFICANT. ACCOUNTING POLICIES (CONTINUED) B. Basic Financial Statements (Continued) 1. Government -Wide Statements (Continued) in the government -wide. statement of net position, bath the .governmental and business -type activities columns: (a) are presented on`> a. consolidated basis by column; and. (b). are reported on a full accrual, ecor orriic resource {oasis, which recognizes all long-term assets and receivables ;as well as. long-term debt and. obligations. The City's net position is reported im lree: parts: (1) net investment in capital assets; (2) restricted net position; and (3j''unresi''lcted net position. The City first utilizes restricted resources:to finance gyal1NAng activities. The statement. of activities. demonstrates the degree to which `the ;;direct.expenses of each function of the City'.s governmental activities...and different business --type activity are offset by program revenues "birect expenses are #hose ' that are clearly identifiable with a specific function or. activity: Program revenues include: (1) fees, fines and charges paid by the recipients: b : goods, services, or privileges provided by a given functivn.or activity; and (2) grants ;and contributions that are restricted to meeting the operational or capital requirements. of a particular function or activity. Revenues that: are not classified as. program'revenues, including .al[ taxes, :are presented as general. rever!ties. 2. Fund Financial $tatements The. fund .financial statements provide information about the City's funds. Separate statements for each :;fund category;, governmental and proprietary, are presented. The err pf asis of. governrr ental..ancl -propriota y fund financial statements is on major individual governmental. acid enterprise funds, with each displayed as separate cold. i ris in fh`e:fi .nd financial statements. All remaining governmental and enterprise funds'ateaggregated and reported as nonmajorfunds. (14)