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Fiduciary Funds are used when a government golds or manages financial resources in an agent or fiduciary capacity. The City of Gem Lake does.not operate any of these funds at the current time. The Budget Basis used by the City of Gem Lake is the modified accrual basis of accounting for governmental fund types (for example, the. General Fund, Special Revenue Funds, Debt Service and Capital Project Funds). Under this accounting method, revenues are recognized in the accounting period in which theybecome available and measurable.. Available means collectible within the. current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recognized in the period in which the fund liability is incurred, except for 'unmatured. interest on general longterm debt; which. is recognized when due. Enterprise Funds. use the accrual basis of accounting. Under the`accrual basis revenues are recognized when they are measurable and earned. Expenses are recognized.in the period incurred, if measurable. The budget basis for Enterprise and Internal Service: Funds is also the accrual basis with the exceptions noted below. The City's Comprehensive Annual Financial Report (CAFR} shows the status of the City's finances.on the basis of "generally accepted accounting principles'..(GAAP). This conforms to the way the. City prepares its budget. The CAFR shows fund expenditures on both a GAAP basis and budget basis.for comparison :purposes: BUDGET PROCESS The budget process begins in August with the City Treasurer developing a draft budget. The Mayor and Treasurer then meet in late August or early September to refine the draft budget. It is this budget that is presented to the full City. Council in a workshop session in early September. It is from this workshop that a preliminary:tax levy is presented and. adopted no later than September 151" of each year. Once adopted the preliminary. levy is certified to Ramsey County. Over the next few months the. Mayor and. Treasurer will develop a final. draft budget and tax levy, which again is presented to the full City Council for review in November. From the meeting a final budget and tax levy is developed and presented at a public hearing in November or December.. After the public hearing the City Council votes to .approve the budget and adopt the. final property tax levy.. In late December the December the final levy is certified to the County Auditor. [luring the fiscal year line items may be overspent as long as the total activity budget is not overspent, The Mayor can recommend changes for activities` budget to the City Council, The Council can than approve or disapprove the change, in the form of a budget amendment. Only with the City Council approval can an activity be overspent and only if funding is available. However, the property tax levy cannot be amended, 4