2002 Approved Budget - Laserfiche WebLink

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Modifications that affect the total budget on a fund basis are only approved by the action of the City Council. The City Council, under Minnesota State Statutes Section 412.731, can modify or amend the budget if unappropriated funds are available. Budget appropriations are at the fund level. Examples of such budget amendments would include requests for additional or emergency expenditures where reserve balances are available or additional revenues have been received. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped in the Comprehensive Annual Financial Report (CAFR) into three broad fund categories and six generic fund types as follows: Governmental Funds Subject to Financial Planning and Appropriation General Fund - The General fund is the primary operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special revenue funds are used to account for the proceeds of certain specific revenue sources that are legally restricted to expenditures for specified purposes. Governmental Funds Subject to Financial Planning, but not Subject to Appropriation Debt Service Funds - Debt service funds are used to account for the accumulation of resources for, and the payment of general long -term debt principal, interest, and related costs. Capital Projects Funds - Capital projects funds are used to account for financial resources to be used for the acquisition or construction of maj or capital facilities other than those financed by proprietary funds. Other Funds Subject to Financial Planning but not Subject to Appropriation (Proprietary Funds) Enterprise Funds - Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. With these, the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The City has five Enterprise Funds: Water Utility Fund, Sewer Utility Fund, Storm Drainage Fund, Golf Fund, and Solid Waste Recycling. Internal Service funds - Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City. The I -14