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City of Redwood City <br />Notes to the Basic Financial Statements (Continued) <br />For the Year Ended June 30, 2025 <br /> <br /> <br />64 <br />Note 1 – Summary of Significant Accounting Policies (Continued) <br /> <br />B. Basis of Presentation, Accounting and Measurement Focus (Continued) <br /> <br />Governmental Fund Financial Statements (Continued) <br /> <br />The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to <br />explain the differences created by the integrated approach of GASB Statement No. 34. <br /> <br />The City reports the following major governmental funds: <br /> <br />General Fund – The General Fund is the general operating fund of the City. The fund is used to account for <br />all the general revenues of the City not specifically levied or collected for other City funds and the related <br />expenditures. The General Fund accounts for all financial resources of a governmental unit which are not <br />accounted for in another fund. <br /> <br />Transportation Grants Special Revenue Fund – This fund accounts for grants and developer contributions <br />received for specific transportation projects. <br /> <br />Capital Outlay Capital Projects Fund – This fund was established to account for all miscellaneous capital <br />improvement projects that are financed by the General Fund. <br /> <br />Proprietary Fund Financial Statements <br /> <br />Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and <br />Changes in Fund Net Position, and a Statement of Cash Flows for each major Proprietary Fund and an aggregate <br />column for all nonmajor funds. <br /> <br />A separate column representing internal service funds is also presented in these statements. However, internal <br />service balances and activities have been combined with the governmental activities in the Government-Wide <br />Financial Statements. The City’s internal service funds include funds which provide services directly to other City <br />funds. These areas of service include fleet maintenance, facilities maintenance, and technology. <br /> <br />Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of <br />accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of <br />Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Position presents increases (revenues) <br />and decreases (expenses) in total Net Position. Under the accrual basis of accounting, revenues are recognized in <br />the period in which they are earned while expenses are recognized in the period in which the liability is incurred. <br />In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts. <br /> <br />Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of <br />the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are <br />essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. <br /> <br />The City reports the following major proprietary funds: <br /> <br />Water Utility Fund – This fund is used to account for the provision of water services to the residents of <br />Redwood City and some residents of areas adjacent to the City. All activities necessary to provide such services <br />are accounted for in these funds, including, but not limited to, administration, operations, maintenance, capital <br />improvements, financing, and billing/collections. <br /> <br />7.C. - Page 96 of 269 <br />115