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The government-wide financial statements include not only the City itself (known as the primary government), but also a
<br />legally separate Urban Renewal Agency (URA) for which the City is financially accountable. Although legally separate, the
<br />URA’s governing body is identical to the City’s, and because the services of the URA are exclusively for the benefit of the City,
<br />it is included as an integral part of the primary government.
<br />The government-wide financial statements can be found at Exhibits 1 and 2 in the basic financial statements.
<br />Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have
<br />been segregated for specific activities or objectives. The City uses fund accounting to demonstrate transparency and ensure
<br />compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories:
<br />governmental funds and proprietary funds.
<br />Governmental funds. Governmental funds are used to account for activities where the emphasis is placed on available
<br />financial resources, rather than upon net income determination. Therefore, unlike the government-wide financial statements,
<br />governmental fund financial statements focus on the acquisition and use of current spendable resources, as well as on
<br />balances of spendable resources available at the end of the fiscal year.
<br />Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to
<br />compare the information presented for governmental funds with similar information presented for governmental activities in the
<br />government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s
<br />near-term financial decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues,
<br />Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental
<br />funds and governmental activities. These reconciliations can be found at Exhibits 3 and 5 in the basic financial statements.
<br />The City maintains 23 individual governmental funds. Information is presented separately in the governmental fund Balance
<br />Sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances for those funds
<br />that are considered significant (major) to the City taken as a whole. These financial statements report four major funds:
<br />General Fund, Community Development Special Revenue Fund, General Capital Projects Fund, and the Systems
<br />Development Capital Projects Fund. Data from the other 19 governmental funds are combined into a single, aggregated
<br />presentation. Summary fund data by fund-type for these nonmajor governmental funds is provided as other supplementary
<br />information in the form of combining statements at B-1 and B-2 of this report. Individual fund data for each of these nonmajor
<br />governmental funds is provided in the form of combining statements at C-1, C-2, D-1, D-2, E-1, and E-2.
<br />The City adopts an annual appropriated budget for all governmental funds. To demonstrate compliance with the budget,
<br />budgetary comparison statements have been provided for the General Fund and the Community Development Fund as
<br />required supplementary information at A-1 and A-2. Budgetary comparisons for all other governmental funds have been
<br />provided as other supplementary information at C-3 through C-14, D-3 through D-5, and E-3 through E-8.
<br />The governmental fund financial statements can be found at Exhibits 3 and 4 in the basic financial statements.
<br />Proprietary funds. Proprietary funds are used to account for activities where the emphasis is placed on net position. The
<br />City maintains two different types of proprietary funds – enterprise funds and internal service funds. Enterprise funds are used
<br />to report the same functions presented as business-type activities in the governmental-wide financial statements. The City
<br />uses enterprise funds to account for its ambulance transport, municipal airport, parking services, stormwater utility, and
<br />wastewater utility operations. Internal service funds are an accounting device used to accumulate and allocate costs internally
<br />among the City’s various functions. The City uses internal service funds to account for engineering services, facilities
<br />services, fleet services, information systems and services, and risk and benefits management activities. Because internal
<br />service funds predominantly benefit governmental rather than business-type functions, their assets, deferred outflows of
<br />resources, liabilities, and deferred inflows of resources have been included with the governmental activities in the government-
<br />wide financial statements.
<br />The enterprise funds, all of which are considered to be major funds of the City, are reported separately as proprietary fund
<br />financial statements in the basic financial statements. Conversely, all internal service funds are combined into a single,
<br />aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is
<br />provided as other supplementary information in the form of combining statements at G-1, G-2, and G-3.
<br />The City adopts an annual appropriated budget for all proprietary funds. To demonstrate compliance with the budget,
<br />budgetary comparison statements have been provided for the enterprise funds as other supplementary information at F-1
<br />through F-5. Budgetary comparisons for the internal service funds are provided as other supplementary information at G-4
<br />through G-8. The proprietary fund financial statements can be found at Exhibits 6, 7, and 8 in the basic financial statements.
<br />Notes to the basic financial statements. The notes provide additional information that is essential for a full understanding of
<br />the data provided in the government-wide and fund financial statements. They are an integral part of the financial statements
<br />and should be read in conjunction with them.
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<br />December 9, 2019, Meeting - Item 2CCC Agenda - Page 58
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