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MUNICIPAL ORDER NO. 610
A MUNICIPAL ORDER ESTABLISHING FUND CLASSIFICATIONS
UNDER GENERALLY ACCEPTED GOVERNMENTAL ACCOUNTING PRINCIPLES
(GAGAP)
SECTION 1. Under GAGAP the City of Paducah,
Kentucky, wishes to provide guidance in its fund and account
group classifications for the budget year ending June 30,
1992, as follows:
Governmental Funds are used to account for all or
most of a government's general activities, including the
collection and disbursement of earmarked monies (special
revenue funds), the acquisition or construction of general
fixed assets (capital project funds), and the servicing of
general long-term (debt service funds). The general fund is
used to account for all activities of the general government
not accounted for in some other funds. The funds comprising
the governmental funds are as follows:
General Fund: (There is only one general fund.)
Special Revenue Funds: Federal and state grant
funds, municipal aid, Emergency 911, court awards
and excursion boat.
Debt Service Funds: (There is only one general
debt service fund.)
Capital Projects Funds: Capital Projects Fund
Proprietary Funds are used to account for activities
similar to those found in the private sector, where the deter-
mination of net income is necessary or useful to sound finan-
cial administration. Goods or services from such activities
can be provided either to outside parties (enterprise funds) or
to other departments or agencies primarily within the govern-
ment (internal service funds). The various enterprise funds of
the City are as follows:
Enterprise Funds: Solid waste, wastewater/storm-
water and internal service (fleet maintenance).
Fiduciary Funds are used to account for assets held
on behalf of outside parties, including other government, or on
behalf of other funds within the government. When these assets
are held under the terms of a formal trust agreement, either a
pension trust fund, a nonexpendable trust fund or an expendable
trust fund is used. The terms "nonexpendable" and "expendable"
refer to whether the government is under any obligation to
maintain the trust principal. Agency funds generally are used
to account for assets that the government holds on behalf of
others as their agent. The funds included in this group are:
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Trust Funds: Police and Firemen's Retirement
Appointive Employees' Pension Fund
General Fixed Assets and General Lonq-Term Debt
Account Groups:
Fixed assets used in governmental fund type opera-
tions (general fixed assets) are accounted for in the General
Fixed Assets Account Group, rather than in governmental funds.
Public domain ("infrastructure") general fixed assets con-
sisting of certain improvements other than buildings, including
roads, bridges, curbs and gutters, streets and sidewalks,
drainage systems, and lighting systems are not capitalized
along with other general fixed assets. Depreciation is not
provided on general fixed assets.
All fixed assets are valued at historical costs or
estimated historical cost if actual historical cost is not
available. Donated fixed assets are valued at their estimated
fair market value on the date donated.
Long-term debt expected to be financed from govern-
mental funds are accounted for in the General Long-term Debt
Account Group, not in the governmental funds.
The two account groups are not "funds". They are
concerned only with the measurement of financial position.
They are not involved with measurement of results of opera-
tions.
SECTION 2. This Order will be in full force and
effect from and after the date of its adoption.
GERRY B. MONTGOMERY
Mayor
Adopted by the Board of Commissioners October 8, 1991
Recorded by Lenita Smith, City Clerk, October 8, 1991
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