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CITY OF EUGENE, OREGON
<br />Notes to Basic Financial Statements
<br />(1) Summary of Significant Accounting Policies, continued
<br />(C) Government-wide and Fund Financial Statements, continued
<br />Fund financial statements (Exhibits 3 through 8) are provided for governmental funds and proprietary funds. Major
<br />individual governmental funds and major individual enterprise funds are reported as separate columns in the fund
<br />financial statements.
<br />(D) Measurement Focus, Basis of Accounting, and Financial Statement Presentation
<br />Measurement focus refers to what is being measured by a fund. Basis of accounting refers to when revenues and
<br />expenditures or expenses are recognized in the accounts and reported in the financial statements.
<br />Government-wide and Proprietary Fund Financial Statements
<br />The government-wide and proprietary fund financial statements are accounted for using an economic resources
<br />measurement focus, whereby all assets, deferred outflows of resources, liabilities, and deferred inflows of resources
<br />are included in the Statement of Net Position and the Statement of Fund Net Position. The increases and decreases
<br />in net position are presented in the government-wide Statement of Activities and in the proprietary fund Statement of
<br />Revenues, Expenses, and Changes in Fund Net Position. These funds use the accrual basis of accounting whereby
<br />revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing
<br />of related cash flows.
<br />Interfund activity consists of transfers, services provided and/or used, reimbursements, advances, and loans. As a
<br />general rule the effect of interfund activity has been eliminated from the governmental-wide financial statements.
<br />Exceptions to this general rule include interfund services provided and/or used. Interfund services provided and/or
<br />used are accounted for as revenues and expenses since the elimination of such revenues and expenses would distort
<br />the direct costs and program revenues reported for the various functions.
<br />Amounts reported as program revenues in the Statement of Activities include 1) fees, fines, and charges for services,
<br />2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Grants
<br />and contributions not restricted to specific programs are reported as general revenues rather than as program
<br />revenues. Likewise, general revenues include all taxes.
<br />Operating revenues and operating expenses are intermediate components within the proprietary fund Statement of
<br />Revenues, Expenses, and Changes in Fund Net Position, and include only those transactions that constitute their
<br />principal, ongoing activities exclusive of investing or financing transactions. Significant operating revenues include
<br />charges for services, rental income, and intergovernmental revenue. Significant operating expenses include
<br />personnel, materials and supplies, outside services, depreciation, and pension expense. All revenues and expenses
<br />not meeting this definition are reported as nonoperating revenues and expenses.
<br />Governmental Fund Financial Statements
<br />The governmental fund financial statements are accounted for using a current financial resources measurement
<br />focus. The Balance Sheet reports current assets, current liabilities, and deferred inflows of resources; and the
<br />Statement of Revenues, Expenditures, and Changes in Fund Balance presents increases and decreases in net fund
<br />balance. These funds use the modified accrual basis of accounting whereby revenues are recorded only when
<br />susceptible to accrual (both measurable and available). "Measurable" means that the amount of the transaction can
<br />be determined. "Available" is defined as being collectible within the current period or soon enough thereafter (60
<br />days) to be used to liquidate liabilities of the current period. Expenditures, other than interest on noncurrent
<br />obligations, are recorded when the fund liability is incurred.
<br />Real and personal property taxes are levied as of July 1 for each fiscal year on values assessed as of January 1.
<br />Property taxes are an enforceable lien on both real and personal property as of July 1 and are due and payable in
<br />three installments on November 15, February 15, and May 15. All property taxes are billed and collected by Lane
<br />County and remitted to the City. In the governmental fund financial statements, property taxes are reflected as
<br />revenues in the fiscal period for which they were levied, provided they are due, or past due and receivable within the
<br />current period, and collected within the current period or expected to be collected soon enough thereafter to be used
<br />to pay liabilities of the current period (60 days). Otherwise, they are reported as deferred inflows of resources.
<br />Property taxes which are held at year-end by the collecting agency, Lane County, and are remitted to the City within
<br />the 60-day period are reported as "Due from other governments."
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