6.6. SR 06-04-2018 - Laserfiche WebLink

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CITY OF ELK RIVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 38 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED D.Fund Financial Statement Presentation (Continued) Proprietary fund financial statements are reported using the economic resources measurement focus and accrual basis of accounting, similar to the government-wide financial statements. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds are charges to customers for sales and services. The operating expenses for the enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Fiduciary fund financial statements use the accrual basis of accounting. Agency funds, the City’s only fiduciary type, are custodial in nature (assets equal liabilities) and do not have a measurement focus. The government reports the following major governmental funds: The General fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The YMCA bonds debt service fund is used to account for the accumulation of resources and payment of principal and interest on bonds used to finance the construction of a recreation facility which is leased to the YMCA. The Pavement Management fund is used to account for franchise taxes collected to fund expenditures for the ongoing maintenance and repair of City streets. The government reports the following major enterprise funds: The Municipal Liquor fund accounts for the operations of the City’s off-sale liquor stores. The Garbage fund accounts for the activities of the garbage and recycling collection programs. The Sewer fund accounts for the activities of the sanitary sewer treatment system. The Storm Water fund accounts for the activities of the storm water collection system. The Water fund accounts for the activities of the water distribution system. The Electric fund accounts for the activities of the electric distribution system. Additionally, the government reports the following fund types: The Developer Escrow agency fund is used to account for resources received from developers for the payment of expenses incurred by the City for private development projects. The FSA Plans agency fund is used to account for resources received from employees for the City’s self- administered medical and dependent care FSA plans.