Agenda - Council Work Session - 06/28/2016

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NOTE 1—SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Recording of Expenditures — Expenditures are generally recorded when a liability is incurred, except for principal and interest on long-term debt and other long-term liabilities which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as capital outlay expenditures in the Governmental Funds. Proprietary Fund financial statements are reported using the economic resources measurement focus and accrual basis of accounting, similar to the government-wide financial statements. 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 City's Enterprise Funds and Internal Service Funds are charges to customers for sales and services. The operating expenses for the Enterprise Funds and Internal Service Funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this defmition are reported as non-operating revenues and expenses. The City's Fiduciary Fund is an Agency Fund, which uses the accrual basis of accounting, but has no measurement focus. Information for the Internal Service Fund is reported in a single column in the Proprietary Fund financial statements. Because the principal user of the internal services is the City's governmental activities, the financial statements of the Internal Service Fund are consolidated into the governmental column when presented in the government-wide financial statements. The cost of these services is reported in the appropriate functional activity. Description of Funds The City reports the following Major Governmental Funds: General Fund—This is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Tax Increment Special Revenue Fund — This fund is used to account for resources received from general property taxes in the form of tax increments. COR Land Special Revenue Fund — This fund is used to account for revenues and expenditures associated with land transactions within the COR area. 2012A G.O. Improvement Bond Refund Debt Service Fund — The 2005A Public Project Lease Revenue Bond was issued to finance the construction of the city's municipal center. Series 2012A G.O. Capital Improvement Bond was used to refund this original bond issue. 2012B Residence at the COR Bond Debt Service Fund—The$7,320,000 Series 2012B were Taxable General Obligation Tax Increment bonds that were issued to pay for certain qualified costs related to the construction of the Residence at the COR Apartments with Tax Increment District 14 in the city. Public Improvement Revolving Capital Project Fund—This fund is used to account for the resources to be used to finance the City's share of the annual street maintenance program. 63