6.2 SR 06-03-2024 - Laserfiche WebLink

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59 City of Elk River Notes to Basic Financial Statements NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current period are all considered to be susceptible to accrual and so have been recognized as revenues of the current period. Only the portion of special assessments receivable due within the current period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. Description of Funds: Major Governmental Funds: General Fund – This 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. Pavement Management Fund – This fund accounts for franchise taxes collected to fund expenditures for the ongoing maintenance and repair of the City streets. Proprietary Funds: Municipal Liquor Fund – This fund accounts for the operations of the City's off-sale liquor stores. Sewer Fund – This fund accounts for the sewer service charges which are used to finance the sanitary sewer system operating expenses. Garbage Fund – This fund accounts for the activities of the garbage and recycling collection programs. Storm Water Fund – This fund accounts for the activities of the storm water collection system. Electric Fund – This fund accounts for the activities of the electric distribution system. Water Fund – This fund accounts for the activities of the water distribution system. Page 180 of 464