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CTTY OF ROSEVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTIN�ED) DECEMBER 31, 1989 Note 1- SummarY of Siqnificant Accountinq Policies (Coniinued) expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds hased upon the purposes for which ihey are to be spent and the means by wh9ch spending activities are <ontrolLed. The various funds are grouped in the finan<ial statemen[s report into seven generic fund [ypes and three 6road fund categories as foLlows: GOVERNMENTAL FUNOS GeneraL Fund - The General Fund is [he primary operating fund of the City. It is used to account for alt financial resources except those required to tie accounted for in another fund. SpeciaL revenue funds - Special revenue fonds are used to account for the proceeds of ceriain specific revenue sources that are tegaLLy restricted to expenditures for specified purposes. Deht service funds - Deht service funds are used to account for the accumuLation of resources for, and the payment of generaL Long-term de6t principaL, interest, and reLated msts. Capitat projects funds - Capitat proje<ts funds are used to account for financiaL resources to 6e used '�. for ihe acquisition or construction of major capital facilities other than those financed 6y proprietary '��. funds. � '.. PROPRIETARY FUNDS Enterprise iunds - Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private 6usiness enterprises, where ihe intent of the governing 6ody is that the costs (expenses, i�cLuding depreciation) of providing goods or services to the general pu6li[ on a contiwing 6asis he financed or recovered primarily through user charges. The City has five Enterprise Funds: Water �tllity Fund, Sewer �tility Fund, Storm Orainage Fund, Gotf Fund and Ice Arena fund. Internat Service Funds - Interoal 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 City has two InternaL Service Funds, they are: Workers' Compensation Self-Insurance Fund whi<h accounts for Yhe City's workers' compensation cLaims, and the Risk Management Fund which accounts for atl of the CiTy's general insurance costs. FIDUCIARY F�NDS Agency funds - Agency iunds are used to account for the assets hetd by the City in a trustee capacity or as an agent for individuaLs, private organizations, other governmen[s, and/or other tunds. The City's Agency Punds are custodiaL in nature�-(assets equal liahiLiTies) and do not involve measuremen[ of resuLts of operations. C. Measurement focus The accounting and reporting treatment applied to the fixed assets and Long-term liabiLities associated with a fund are determined by its measurement focus. Governmental funds and Expenda6Le Trust funds are accounted for on a spending or 'financiaL ftow" measurement focus, This means that only current assets and current Liabilities are generalty inctuded on their hatance sheets. Their reported fund 6atance iS 29