CAFR 2017

on a continuing basis be financed or recovered primarily through user charges; or where the governing body has decided that periodic determination of revenues earned, expenses incurred, and net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. The Water Resources Fund provides water and sewer services to more than 104,000 customers and is designed to be self- supporting. This fund also provides for principal and interest on all water and sewer debt. Outstanding Combined Enterprise System revenue bonds are recorded in this fund. The Stormwater Management Fund was established to account for the federally mandated program of stormwater system management, which is supported by a City-wide stormwater fee. The War Memorial Coliseum Fund administers operations of a complex that brings top artists in entertainment, education, and sports to the City. The Coliseum Fund operation supports debt service on the financing agreements for energy improvements at the facility. The Solid Waste Management Fund accounts for waste disposal and recycling operations of the City, as well as solid waste landfill improvements. Outstanding special obligation bonds are recorded and supported in this fund. The City’s parking operations are included in “Other Enterprise Fund”, a non-major fund. Additionally, the government reports the following fund types: Internal Service Funds - Internal Service Funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost-reimbursement basis. The City also accounts for its risk-retention transactions and equipment purchases financed with lease-purchase agreements in the Internal Service Funds. Internal Service Funds of the City government (which traditionally provide services primarily to other funds of the government) are presented in summary form as part of the proprietary fund financial statements. Since the principal users of the Internal Service Funds are associated with the City’s governmental activities, financial statements of Internal Service Funds are consolidated into the governmental activities column when presented at the government-wide level. To the extent possible, the costs of these services are reflected in the appropriate functional activity. Fiduciary Funds - The Law Enforcement Officers Special Separation Allowance Pension Benefit Trust (LEOSSA) and the Other Postemployment Benefit (OPEB) Trust Funds account for assets held by the City in a fiduciary capacity and accumulate funds to provide pension and certain health and life benefit payments to qualified law enforcement officers and retirees. These funds use the accrual basis of accounting and have a capital maintenance measurement focus. They are accounted for in essentially the same manner as Proprietary Funds. The City’s fiduciary funds are presented in the fund financial statements by type (Law Enforcement Officers Special Separation Allowance Pension Benefit Trust (LEOSSA) and other Postemployment (OPEB) Benefit Trust). Since by definition these assets are being held for the benefit of a third party (pension and retiree participants) and cannot be used to address activities or obligations of the government, these funds are not incorporated into the government-wide statements. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to the rule are payments between the water resources and solid waste disposal funds and the General Fund. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Liabilities, Deferred Outflows/Deferred Inflows of Resources, and Net Position or Equity 1. Cash and Cash Equivalents/Investments The City maintains a cash and investment pool that is used by all funds except the following, which maintain separate deposits and investments: Capital Project Bond Funds and Water Resources Bond Funds. Each fund type’s equity and cash and cash equivalents/investments are displayed separately on a combined balance sheet. Interest is distributed to the various funds on the basis of equity in the cash and cash equivalent/investments pool and individual fund investments. For purposes of the

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