02-08-1993 Council Packet - Laserfiche WebLink

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91487.3a(46)CITY OF ORONOIMTRODOCTION TO BUDGETED FUNDSThe City of Orono operates under "Optional Plan A" form of government as defined in the State of Minnesota Statutes. The City Council, composed of an elected mayor and four elected counc i Iniember s, exercises legislative authority and determines all matters of policy. The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts to record cash and other resources, together with related liabilities and balances. Funds are segregated for the purpose of carrying on specific activities or objectives under special regulations, restrictions or limitations. The City prepares budgets for the following funds, grouped by fund type. 1. Governmental Funds tyoes are those through which most governmental functions are financed and include the following funds: a) General Fund - The General Fund 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. b) Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects) that are legally restricted to expenditures for specific purposes. included in this fund type are: Park Fund Improvement and Equipment Outlay Fund Building Capital Outlay Fund c) Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. Included in this fund type are: 1980 Improvement Bond Fund 1982 Improvement Bond Fund 1985 Improvement Bond Fund 1991 Public Improvement Rev Bond Fund 1992 Improvement Bond Fund The debt service funds appear as information only. Formal budgets are not required annually as the schedule of bond redemption and sources of revenue are established at tie time of bond sale. d.) Capital Project Funds - Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds and trust funds. Included In this fund type are: Municipal State Aid Construction Fund Permanent Improvement Revolving Fund 2. Proprietary Fund Types are used to account for the City's activities which are similar to the private sector. The City has three (3) Enterprise or Proprietary Funds wherein the cost, of providing goods the general public on a continuing basis are to be financed or recovered primarily through user charges. Includeo in this fund type are: Water Operating Fund Sewer Operating Fund Golf Course Operating Fund