5.5. SR 06-02-2008 - Laserfiche WebLink

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1 1 1 CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED The government reports the following major governmental funds: The Ceneral fund is the government'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 Library special revenue fund accounts for any library maintenance cost which are not paid by the Great River Regional Library System and for the construction of a new library. The Improvement Bonds debt service fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation special assessment debt. The proceeds were used to finance various street, water, sewer and storm sewer improvements. The Street Improvements capital projects fund is used to account for the construction of street improvement projects throughout the City. The Improvement Projects capital projects fund is used [o account for the construction of various improvements within the City. The YtY1CA capital projects fund is used to account for the construction of a new recreation facility which will be leased by the YMCA. The government reports the following major proprietary funds: The !Llunlcipal Liquor fund accounts for the operations of the City's off-sale ]iyuor stores. The Carbage fund accounts for the activities of the City's garbage collection and recycling program. The Sewer fund accounts for the activities of the City's sanitary sewer treatment system. The Water,fund accounts for the activities ofthe City's water distribution system. The Electric fund accounts for the activities of the City's 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 Developer Escrow agency fund is omitted from the government-wide financial statements, and is included separately within Che statement of fiduciary net assets. Private-sector standards of accounting and fmancial reporting issued prior to December 1, ] 989, generally are followed in both the government-wide and proprietary fund fmancial statements to the extent that those standards do not conflict with or contradict guidance of the Govemmenta] Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The government has elected not to fallow subsequent private-sector guidance. As a general rule, the effect of interfund activity has been eliminated from government-wide fmancial statements. Exceptions to this general rule are charges between the City's sewer, water and electric functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 41