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The government-wide financial statements of the City are divided into two categories: <br /> Governmental activities— Most of the City's basic services are included here, such as the public <br /> safety, public works, parks and recreation, library services, and general administrative services. <br /> Sales and use taxes, property taxes, other taxes, charges for services, and intergovernmental <br /> revenue finance most of these activities. <br /> Business-type activities— The City charges user fees to customers to recover most of the costs <br /> of providing certain services. The City's water, wastewater, storm water, and solid waste <br /> utilities, as well as golf facilities, are included here. <br /> Fund Financial Statements <br /> The fund financial statements provide more detailed information about the City's most significant <br /> funds — not the City as a whole. A fund is a grouping of related accounts that is used to <br /> maintain control over resources that have been segregated for specific activities or objectives. <br /> The City uses fund accounting to ensure and demonstrate compliance with finance-related legal <br /> requirements. Some funds are required by State law and by bond covenants. Other funds are <br /> established by the City Council to control and manage money for particular purposes or to show <br /> that it is properly using certain taxes and grants. <br /> All of the funds currently used by the City can be divided into two categories: governmental <br /> funds and proprietary funds: <br /> • Governmental funds— Most of the City's basic services are included in governmental funds, <br /> which focus on (1) how cash and other financial assets can readily be converted to cash <br /> flow in and out and (2) the balances left at year-end that are available for spending. <br /> Consequently, the governmental funds statements provide a detailed short-term view that <br /> helps determine whether there are more or fewer financial resources that can be spent in <br /> the near future to finance the City's programs. Because this information does not <br /> encompass the additional long-term focus of the government-wide statements, we provide <br /> additional information at the bottom of the governmental funds statement, or on the <br /> subsequent page, that explains the relationship (or differences) between them. <br /> • Proprietary funds — Services for which the City charges customers a fee are generally <br /> reported in proprietary funds. Proprietary funds, like the government-wide statements, <br /> provide both long-term and short-term financial information. <br /> o The City uses enterprise funds (one type of proprietary fund) to report its business-type <br /> activities and provide more detailed and additional information, such as cash flows. <br /> o The City uses internal service funds (the other type of proprietary fund) to report <br /> activities that provide services and asset replacement for the City's other programs and <br /> activities — such as the City's Fleet Management Fund. These funds are reported with <br /> governmental activities in the government-wide financial statements. <br /> 14 <br />