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CITY OF RAMSEY <br />Notes to Financial Statements (continued) <br />December 31, 1998 <br />NOTE 1 -SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) <br />b. Special Revenue Funds -The Special Revenue Funds are used to account for the proceeds of <br />specific revenue sources (other than expendable trusts or major capital projects) that are legally <br />restricted to expenditures for specified purposes. They are also used to finance specified <br />activities as required by law or administrative regulation. <br />c. Debt Service Funds -The Debt Service Funds are used to account for the accumulation of <br />resources for, and the payment of, general long-term. debt principal, interest, and related costs. <br />d. Capital Project Funds -The Capital Project Funds are used to account for financial resources <br />to be used for the acquisition or construction of major capital facilities (other than those <br />financed by Proprietary Funds). <br />2. Proprietary Fund Types <br />a. Enterprise Funds -The Enterprise Funds are used to account for operations that are financed <br />and operated in a manner similar to private business enterprises -where the intent of the <br />governing body is that the costs of providing goods or services to the general public on a <br />continuing basis be financed or recovered primarily through user charges. <br />b. Internal Service Fund -The Internal Service Fund is used to account for the City's insurance <br />refunds, dividends, and other miscellaneous insurance related revenues, and to provide for self- <br />insuring the deductible portions of the City's insurance policies. The Internal Service Fund <br />operates in a manner similar to Enterprise Funds; however, the fund provides services primarily <br />to other departments within the City. <br />3. Fiduciary Fund Type <br />a. Expendable Trust Funds -The Expendable Trust Funds are used to account for assets held by <br />the City in the capacity of trustee. <br />4. Account Groups <br />a. General Fixed Assets -The General Fixed Assets Account Group is used to account group for <br />fixed assets acquired by the City's governmental fund types. <br />b. General Long-Term Debt -The General Long-Term Debt Account Group of accounts contains <br />the long-term obligations of the City, other than those liabilities in the Proprietary Funds. <br />D. Measurement Focus and Basis of Accounting <br />The accounting and financial reporting treatment applied to a fund is determined by its measurement focus <br />and its basis of accounting. <br />-12- <br />