All of the funds of the City can be divided into three categories: governmental funds, proprietary
funds, and fiduciary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as balances of spendable resources available
at the end of the fiscal year. Such information may be useful in evaluating a government’s near-
term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the City’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of
revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City maintains 29 individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures and changes in fund balances for the General Fund and Debt Service Fund. Data from
all the other governmental funds are combined into a single aggregated presentation. Individual
fund data for each of these nonmajor governmental funds is provided in the form of combining
statements elsewhere in this report.
The City adopts an annual appropriated budget for its general fund. A budgetary comparison
statement has been provided for the General Fund to demonstrate compliance with this budget.
Proprietary Funds
Proprietary fund reporting focuses on the determination of operating income, changes in net
position (or cost recovery), financial position, and cash flows. The proprietary fund category
includes enterprise and internal service funds.
The City maintains two different types of proprietary funds. Enterprise funds are used to report the
same functions presented as business-type activities in the government-wide financial statements.
The City uses enterprise funds to account for its Wastewater and Solid Waste operations. Internal
service funds are an accounting device used to accumulate and allocate costs internally among the
City’s various functions. The City uses an internal service fund to account for its self-insured
programs. Because this service predominantly benefits governmental rather than business-type
functions, it has been included within governmental activities in the government-wide financial
statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
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