234.05  GOVERNMENTAL FUND ACCOUNTING STRUCTURE.
   (a)   For purposes of this section, a fund shall be defined as a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions and limitations.
   (b)   For purposes of this section, individual funds shall be established by further ordinance or resolution within a fund class by fund type. Fund classes and fund types shall be based on the following categories and subcategories:
   (1)   Governmental fund type(s).
      A.   These fund types are used to account for activities typically associated with general government operations.
      B.   Fund classes within the governmental fund type include the following:
         1.   General Fund.  This Fund is the main City fund to account for all general operations. The Fund is used to account for all financial resources, except those required by law, contract or administrative action to be accounted for in another fund.
         2.   Special revenue funds.  These funds are used to account for proceeds of specific revenue sources (other than expendable trusts or major capital projects) which are legally restricted for specific purposes.
         3.   Capital projects funds.  These funds are used to account for financial resources used for the acquisition or construction of major capital facilities, other than those financed by proprietary funds, special assessment funds and trust funds.
         4.   Debt service funds.  These funds are used to account for financial resources used to pay principal and interest debt (long and short term) and related costs.
         5.   Special assessment funds.  These funds are used to account for financing public improvements against which special assessments shall be levied.
   (2)   Proprietary fund types.
      A.   These fund types are used to account for activities typically emulating the private sector.
      B.   Fund classes within this fund type include the following:
         1.   Enterprise funds.
            a.   These funds are used to account for operations financed and operated in a manner similar to private business enterprises where the intent of the City of Norton is that the costs of providing materials, supplies or services to the general public on a continuing basis shall be financed or recovered primarily through user charges.
            b.   These funds are used to account for operations financed and operated in a manner similar to private business enterprises where the City of Norton has decided that a periodic determination of revenues earned, expenses incurred and/or net income are appropriate for capital maintenance, public policy, management control, accountability or other purposes.
         2.   Internal service funds.  These funds are used to account for financing goods (materials and supplies) or services provided by one department to another department of the City, or to other governmental units on a cost reimbursement basis.
   (3)   Fiduciary fund type(s).
      A.   These fund types are used to account for activities created for situations in which the government is acting in a fiduciary capacity as a trustee or agent.
      B.   Fund classes within this fund type include the following:
         1.   Trusts.
            a.   Expendable.  Assets held by a governmental unit in a trustee capacity per an agreement whereby both principal and interest can be spent.
            b.   Non-expendable.  Assets held by a governmental unit in a trustee capacity per an agreement whereby only the interest can be spent, and the principal is preserved.
            c.   Pension(s).  Used by those governments accounting for their own pension plans.  NOTE: The City of Norton has no need to utilize pension trust funds.
         2.   Agency.  These types of funds are used to account, as an agent, for assets held for other funds, individuals, private organizations or other governmental units.
   Each fund the City of Norton maintains, or shall have a need to maintain, shall be classified within one of the three fund types and within one of the eight generic fund classes.
   (c)   For purposes of this section, account groups are special classifications used to account for the general fixed assets purchased by governmental fund types and general long-term debt incurred by most governmental fund types.
   The general fixed asset account group and general long-term obligations account group are two self-balancing accounts that make a clear distinction between fixed assets related to specific funds and those of general government and between long-term obligations related to specific funds and those of general government.
      (1)   General fixed asset account group.  This account group is not a fund, but serves as a list of a government's fixed assets.  The account group is designed to ensure accountability for fixed assets.
         This account group accounts for property, plants and equipment acquired by the governmental and similar fiduciary fund types within the governmental entity.
      (2)   General long-term obligations account group.  This account group is not a fund, but provides the method by which a government accounts for unmatured long-term debt obligations not identified as a specific fund liability of a proprietary or trust (fiduciary) fund.
         Long-term debt obligations of proprietary funds and trust (fiduciary) funds  are accounted for through these funds.
(Ord. 54-1994.  Passed 4-25-94.)