2014 Annual Comprehensive Financial Report

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City of Louisville Notes to the Financial Statements December 31, 2014 Note 1: Summary of significant accounting policies (continued) C. Measurement focus, basis of accounting, and financial statement presentation (continued) • The Open Space & Parks Fund is a special revenue fund and accounts for a temporary sales and use tax of three -eighths percent (3/8%) to be in effect for ten years, beginning January 1, 1994. The voters extended this tax in 2002 for another ten years beginning January 1, 2004 and extended the tax again in 2012 for another ten years beginning January 1, 2014 and ending on December 31, 2023. Revenues from the three -eighths percent are used exclusively for the acquisition and maintenance of land in and around Louisville for open space buffer zones, trails, wildlife habitats, wetlands preservation, and future parks. • The Capital Projects Fund was created in 1985 to account for the service expansion fee and the major thoroughfare fee. These fees were collected through the building permit process and were restricted for construction or renovation of park and building facilities; improvements to streets, alleys, sidewalks, and trails; acquisitions of City trees, improvements to drainage system; and for capital equipment. This fund now accounts for the monies received from a one -percent (1%) sales tax, which became effective July 1, 1989. This one -percent sales tax funds various capital improvements and, in the past, has funded debt service on sales tax revenue bonds. Proprietary funds distinguish operating revenues and expenses from non -operating 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 water and wastewater utilities, the golf course, the solid waste enterprise funds, and the City's internal service funds are charges to customers for sales and services. The utilities recognize the portion of tap fees intended to recover the cost of connecting new customers to the system as operating revenue. Operating expenses for enterprise funds and internal service 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 non -operating revenues and expenses. The City reports the following major proprietary funds: • The Water & Wastewater Fund accounts for the operations and capital needs to provide water, wastewater, and storm water services within the boundaries of the City. • The Golf Course Fund accounts for the operations and capital needs of Coal Creek Golf Course, which, due to the flood of 2013, did not have any operations during 2014 for reconstruction. • The Solid Waste & Recycling Fund accounts for the operations of providing solid waste pickup and single -stream recycling. 42