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LITY OF ROSEV(LlE MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31. 1992 Note 1- SummarY of Sianificent Actounting Policies The City of Roseville, Minnesota, wes incorporated on May 28, 1948, and became a statutory city on Jenuary 7, 7974. The City operates under a Councit-Manager form of goverrvnent, and provides various services as authorized by State stafute, including the follouing: general goverrment, public safety, public uorks, parks and recreation, uater ard seuer utility, and camunity developnent. The aecounting policies of the City of Roseville eonform to Benerally accepted accounting principals appticeble to goverrvnental units. The follouing is a su�mary of the more significant policies. A. Reporting Entity Por finantial reporting purposes the City's financial statertients include ell furds, eccount groups, depertments, egencies, boerds, eommissions, erd other or8anizetions over which City officials exercise oversight responsibitity. Oversight responsibility includes such aspects es appointment of governing body members, budget revieu, approval of property tex levies, outstending debt secured by the City's full faith and credit or revenues end responsibility for funding deficits. Certain organizations have been excluded fran the City's financial stetements es follous: Extluded: Firemen's Relief Association - This essociation is organized as a non-profit or9anization by it�s members to provide pension end other benefits to their respective members in accordance with Minnesota statutes. Their board ot directors are etected by the members. All funding is condutted in actordance with Minnesote statutes, whereby state aids ttow to the association, and tax levies are determined by the association. 7he essocietion pays benefits directty to their mei�ers. The association may certify tex levies to the County directly if the City does not cerry out this function. Because the associetion is able to furW it�s programs independently ofi the City, it is excluded fran the reporting entity. (See Note 9 for disclosures relating to the pension ptan operated by the association.) Independent Schoot Districts No. 627 and 623 - These Oistricts, like all school districts in Minnesota, are completely independent of eny other goverrxnentel entity. They have their own elected Boards of Education, Levy their oun taxes and prepare their oun financiat reports. B. Pund Accounting ��. The accounts of the City are organized on the besis of funds and account groups, each of which is considered I, a separate accounting entity. The operations of each fund are accounted for uith a separate set of self- . 6atencing ectounts that canprise its assets, liabilities, tund equity, revenues, and expenditures, or expenses, es appropriate. Goverrment resources are ellocated to and accounted for in individual funds based upon the purposes for uhich they ere to be spent end the means by uhich sperding activities ere controlled. The various � funds are grouped in the financial statements report into seven generic fund types and three broad fund '��.. categories as follous: GOVERNMENTAL FUNDS General fund - The General Fund is the primary operating fund of the City. It is used to atcount for all finantiet resources except those required to be eccounted for in enother fund. Speciet revenue funds - Special revenue funds ere used to account for the proceeds of certein specific revenue sources that ere legally restricted to expenditures for specified purposes. Debt service funds - Debt service funds ere used to eccount for the eccun�lation of resources for, end the peyment of generel tong-term debt principet, interest, and releted costs. Capital projetts funds- Cepital projects furds are used to eccount for finencial resourees to be used for the ecquisition or construction of inejor capitel fatilities other than those financed by proprietary funds. PROPRIETAR7 FUNDS Enterprise funds - Enterprise Funds are used to account for operations that ere financed and operated in a manner simiter to private business enterprises, where the intent of the governing body is that the costs (expenses, including depreciationy of providing goods or servires to the generel pubtic on a continuing basis be finented or recovered primarily through user charges. The City has six Enterprise Funds: Water Utility Fund, Seuer Utility Fund, Storm Drainage Fund, Golf Fund, Soid Yaste Recycling and Ice prena Fund. E(17