04-22-2019 Council Packet - Laserfiche WebLink

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CITY OF ORONO NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2017 (31) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Fund Financial Statement Presentation (Continued) 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. 2008 Improvement Bonds – This fund is used to accumulate resources and make debt service payments on the City’s G.O. Improvement Bonds, Series 2008A. The City reports the following major enterprise funds: Water Operating Fund – This fund is used to account for the provision of water services to the residents of the City who have water service available. Sewer Operating Fund – This fund is used to account for the provision of sewer services to the residents of the City who have sanitary sewer service available. Storm Water Fund – This fund is used to account for the charges for and the costs of maintaining the City’s storm water system. The City’s proprietary funds also include the following: Internal Service Funds – Insurance and Compensated Absences – These funds are used to account for the insurance costs incurred by the City for general liability, property, vehicle, workers’ compensation, and other insurance and deductibles as well as to account for the accrual of sick and vacation days that are earned by the City’s employees. These funds are reimbursed through charges to the various participating departments of the City. E. Cash and Investments Cash balances from all funds are combined and invested to the extent available in short- term investments. Earnings from the pooled investments are allocated to the individual funds based on the average monthly cash and investment balances of the respective funds. The City considers all highly liquid debt instruments with an original maturity from the time of purchase by the City of three months or less to be cash equivalents. The proprietary funds’ portion in the government-wide cash and investment management pool is considered to be cash equivalent. Cash and investments held by trustee reflect balances held in segregated accounts for specific purposes. Interest earned on these investments is allocated directly to those accounts.