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L <br />Cityof FINANCE COMMITTEE <br />Louis- ville COMMUNICATION <br />COLORADO -SINCE 1878 <br />SUBJECT: NEW MEMBER ORIENTATION — FUND STRUCTURE AND <br />RESTRICTED REVENUE <br />DATE: DECEMBER 15, 2020 <br />PRESENTED BY: KEVIN WATSON, FINANCE DIRECTOR <br />SUMMARY: <br />For accounting purposes, a government is not treated as a single, integral entity. Rather, <br />a government is viewed instead as a collection of smaller, separate entities known as <br />"funds". A Fund is defined as: <br />A fiscal and accounting entity with a self -balancing set of accounts recording cash <br />and other financial resources, together with all related liabilities and residual <br />equities or balances, and changes therein, which are segregated for the purpose <br />of carrying on specific activities or attaining certain objectives in accordance with <br />special regulations, restrictions, or limitations. <br />All of the funds used by a government must be classified into one of three fund <br />"classifications", which contain eleven fund "types". The three broad fund classifications <br />are Governmental, Proprietary, and Fiduciary. <br />Governmental Funds <br />Governmental Fund types include the General Fund, Special Revenue Funds, Debt <br />Service Funds, Capital Project Funds, and Permanent Funds. The City uses the following <br />fund types to account for governmental -type activities. <br />General Fund — The General Fund is the City's main operating fund and is used to <br />account for everything not accounted for elsewhere. <br />Special Revenue Funds — Special Revenue Funds account for specific revenue sources <br />whose use is limited to a specific purpose, other than for debt service or general capital <br />projects. Special Revenue Fund revenue are typically restricted by law and are <br />designated to finance particular functions or activities of government and which cannot <br />be diverted to other uses <br />Open Space & Parks Fund <br />On November 2, 1993 Louisville voters approved a temporary sales and use tax increase <br />of 3/8% for ten years, beginning January 1, 1994. This was extended for another ten <br />years (through 2013) in 2002 and again (through 2023) in 2012. Revenues from the <br />increase are used exclusively for the acquisition and maintenance of land in and around <br />FINANCE COMMITTEE COMMUNICATION <br />E <br />