Laserfiche WebLink
CITY OF PEQUOT LAKES <br /> ACCOUNTING AND REPORTING POLICIES <br /> Adopted: 4-5-05 <br /> Amended: 1-6-15 <br /> A. MAJOR FUNDS AND FUND GROUPS <br /> The City will report funds as major according to the GASB #34 requirements. In <br /> addition, the City has the discretion to show additional major funds (i.e. fire <br /> fund). All remaining funds are reported as non-major governmental-type funds. <br /> B. ANNUAL OPERATING BUDGET <br /> The purpose of establishing an operating budget is to ensure the City's annual <br /> operating expenditures are based on a stable stream of revenues. The City follows <br /> these procedures in establishing the budgetary data reflected in the financial <br /> statements. <br /> 1. During May or June of each year, the City Clerk and Finance <br /> Administrator provide all department heads with budget worksheets. <br /> Department heads prepare a proposed operating budget and return the <br /> worksheets to the City Clerk and Finance Administrator for review. The <br /> City Clerk and Finance Administrator meet with department heads and <br /> accept proposed budget work-papers. <br /> 2. Prior to September 1, the City Clerk submits to the City Council a <br /> proposed operating budget for the fiscal year commencing the following <br /> January 1. The operating budget includes proposed expenditures and the <br /> means of financing them. <br /> 3. Public meetings or hearings are conducted in accordance with the state <br /> truth in taxation statutes to obtain taxpayer comments and adopt the final <br /> tax levy and budgets for the governmental, special revenue, and enterprise <br /> funds. <br /> 4. Formal budgetary integration is employed as a management control device <br /> during the year for the general fund, special revenue funds and enterprise <br /> funds. <br /> 5. Operating budgets are prepared for the following funds as recorded in the <br /> general ledger: General Government - general,police, roads,parks, <br /> planning and zoning, cemetery, fire, library, Business Park, housing and <br /> redevelopment authority, and Enterprise—water and sewer. <br /> 6. Capital outlay carryover is a budget line item for the purpose of <br /> assigning monies for future projects, programs, or equipment. <br /> C. REVENUE CLASSIFICATION AND USE <br /> General Fund revenues typically consist of: various taxes, rental income, grants <br /> and contributions, special assessments, fees and charges, fines and forfeits, and <br /> grants that are budgeted or indicated for a specific purpose, activity or program. <br /> Fees, Charges, and Fines are charges to customers, applicants or others who <br /> - 3 - <br />