2005 Comprehensive Annual Financial Report

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CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) The park and recreation fund is used to account for the operation of the City park system. Financing is provided by a specific annual property tax levy to the extent that user fees and miscellaneous revenues are insufficient to provide such financing. The tax incremental financing (TIF) airport fund is used to account for public improvement pro- jects in the airport economic development area. Financing is provided by property tax proceeds in excess of those attributable to the assessed value of the property in the district before redevelopment. The county option income tax (COIT) fund is used to account for the City's share of the county option income tax. Expenditures include land improvements and purchases of motor equipment. The primary government reports the following major proprietary funds: The water utility fund accounts for the operation of the primary government's water distribution system. The wastewater utility fund accounts for the operation of the primary government's wastewater treatment plant, pumping stations and collection systems. The Century Center fund accounts for the operation and maintenance of the City's convention center. Financing is received from various rental agreements and a subsidy from the St. Joseph County's Special Funds Board of Managers. Additionally, the primary government reports the following fund types: The internal service fund accounts for liability coverage, employee medical coverage, and central services such as fuel, vehicle repairs and various supplies provided to other departments on a cost - reimbursement basis. The pension trust funds account for the activities of the 1925 police and 1937 fire pension funds which accumulate resources for pension benefit payments. The private - purpose trust fund reports a trust arrangement under which principal and income benefits cemetery maintenance. Agency funds account for assets held by the primary government as an agent for employee payroll, pension, and payroll deductions. Private - sector standards of accounting and financial reporting issued prior to December 1, 1989, gen- erally are followed in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private - sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The primary government has elected not to follow subsequent private - sector guidance. As a general rule, the effect of interfund activity has been eliminated from the government -wide finan- cial statements. Exceptions to this general rule are payments -in -lieu of taxes and payments of ad- ministrative costs. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 30