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 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 financial statements into two generic fund types and three
fund categories as follows:
A. Governmental funds.
(1) General Fund. The General Fund is the general operating
fund of the City. It is used to account for all financial resources except
those required to be accounted for in another fund.
(2) Special revenue funds. Special revenue funds are used
to account for the proceeds of specific revenue sources that are restricted
to expenditures for specified purposes.
B. Proprietary funds.
(1) Enterprise funds. Enterprise funds are used to account
for operations (a) that are financed and operated in a manner similar to private
business enterprises where 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; or (b) where the governing body has decided that periodic determination
of revenues earned, expenses incurred and/or net income is appropriate for
capital maintenance, public policy, management control, accountability, or
other purposes.
Inventory is valued at the lower of FIFO cost or market.
Property and equipment in general fixed assets are stated at values
found in insurance records. Generally accepted accounting principles require
that such assets be recorded at historical value. Records of some historical
costs on fixed assets have not been located. Proprietary fund fixed assets
are stated at cost. Major repairs or improvements are capitalized. Assets
sold, retired, or otherwise disposed of are removed from the asset and accumulated
depreciation accounts and any gain or loss thereon is reflected on operations.
Depreciation is computed on the straight basis at the following rates:
|
Years
|
---|
Buildings
|
33.3 to 40
|
Equipment
|
10 to 22
|