2008 Annual Comprehensive Financial Report

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