Page 48 - FY 2026-2027 Adopted Budget Book

Fund Structure

The financial structure is defined by the City’s fund types. Funds are established for specific
revenues and expenditures related to certain activities of the City. They are further organized into various
groups to identify their purpose.

Governmental Funds - used to account for all governmental-type activities. These activities consist of all
financial resources that cannot be categorized in other funds.

Proprietary Funds - account for business activities where the cost of providing services is financed
primarily through user charges. These funds operate similarly to a private business.
Enterprise - a separate accounting and financial reporting mechanism for municipal services for which
a fee is charged in exchange for goods or services. It allows a community to demonstrate to the public
the portion of total costs of a service that is recovered through user charges and the portion that is
subsidized by the tax levy, if any.
Internal Service - a separate accounting and financial reporting mechanism for municipal services
provided by one department to other departments on a cost-reimbursement basis.

Special Revenue Funds - while a governmental fund type, the revenue source(s) is restricted or
committed to a specific purpose other than capital projects or debt service. This restriction often originates
in state or federal law, such as the revenue from Hotel Occupancy Taxes in the Tourism Fund, which must
be used for tourism-related facilities and special events.

The following chart identifies the City’s budgeted funds, organized by their fund type. The City has additional
funds that are audited, but not included in the budget. For example, the Grant Funds are not budgeted as the
revenue and expenditures are considered outside everyday operations and are not an ongoing,
consistent revenue source. Fiduciary funds are excluded because assets are held by the City in a trustee
capacity for other entities.

FY 2026-2027 Adopted Budget Book · September 15, 2026 44