Page 344 - FY 2025 Adopted Operating Budget and Business Plan
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Appendices                                              Return to Table of Contents





            FUND ACCOUNTING INFORMATION
            Governmental Funds

            General Fund:  The General Fund is the principal fund of the City.  All general tax revenues and other receipts that are not
            allocated by law or contractual agreement to some other fund are accounted for in this fund.  From the General Fund are paid
            the general operating expenditures and the capital improvement costs that are not paid through other funds.

            Special Revenue Funds:  The Special Revenue Funds are used to account for the proceeds of specific revenue sources
            that are legally restricted to expenditures for specified purposes.  The Special Revenue Funds include Community Development
            Block Grants, Home Investment Partnership, Federal Aviation Administration, Federal Transit Administration, Automobile Theft
            Protection, Texas Department of Community Affairs, Police Restricted, Texas Department of Transportation, Park Performance,
            Convention and Event Services, and other special revenue funds.

            Debt Service Fund:  The Debt Service Fund is used to account for the accumulation of resources for, and the payment of,
            principal and interest on the general long-term debt not being financed by proprietary funds.  The fund’s primary source of
            revenue is ad valorem taxes, which are levied by the City.

            Capital Projects Funds:  The Capital Projects Funds are used to account for the acquisition or construction of capital
            facilities being financed from bond proceeds, contributed capital, assessments levied or transfers from other funds, other than
            those recorded in Proprietary Funds.  The Capital Projects Funds include Municipal Office Building, Police, Fire, Library, Airport,
            Park, Street, Traffic, Community Development, and Fleet.
            Proprietary Funds

            Enterprise Funds:  The Enterprise Funds are used to account for operations that are financed and operated in a manner
            similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation)
            of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user
            charges.  The Enterprise Funds include the Aviation Fund, the Water and Sewer Fund and the Stormwater Utility Fund.

            Internal Service Funds:  The Internal Service Funds are used to account for the financing of materials and services provided
            by one department of the City to other departments of the City on a cost-reimbursement basis.  The Internal Service Funds
            include General Services, Fleet Services, Technology Services, and the City’s self-insurance activities consisting of the Arlington
            Property Finance Authority, Workers’ Compensation and Group Health Funds.

            Basis of Accounting

            The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.  All of the City’s
            governmental fund types are accounted for using a current financial resources measurement focus.  Under this measurement
            focus, generally only current assets and liabilities are included on the balance sheet.  Operating statements of these funds
            present increases and decreases in net current assets.

            All  proprietary  funds  and  trust  funds  are  accounted  for  on  a  flow  of  economic  resources  measurement  focus.    With  this
            measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet.
            Fund equity is segregated into contributed capital and retained earnings components for proprietary funds and fund balance for
            trust funds.  Operating statements present increases and decreases in net total assets.

            Accrual basis:  The accrual basis of accounting is utilized by the Enterprise Funds, the Internal Service Funds, and Pension
            Trust Funds.  Accordingly, revenues and expenses are recognized in the accounting period in which they are earned and
            incurred, respectively.







            FY 2025 Adopted Budget and Business Plan                                        335                                                                City of Arlington, Texas
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