The City adopted its present charter in 1983. The legislative functions of the City are vested in the five Council members. The Mayor serves as President of the Council, participates in all Council discussions, and has veto power on all ordinances passed by the Council. The Mayor is also the ceremonial head of the City government. The Mayor and all Council members are elected on an at-large basis for four year terms.

The City Administrator serves as the chief administrative officer of the City, responsible to the Council for the administration of all City affairs. The Director of Finance is the chief financial officer of the City and has been delegated the task of supervising and directing the proper accounting of all revenues and expenditures, and the preparation of the annual operating budget. The books and accounts of the City are audited annually by an independent public accountant selected by the Council.

The City provides the full range of municipal services that is contemplated by statute or charter. This includes public safety (police and fire), highways and streets, sanitation, electric, water and sewer service, parks and recreation, public improvements, economic development, planning and zoning, property management, and general administrative services.

FUND ACCOUNTING
As shown on the fund structure organizational charts preceding each major section of the budget, the City's accounts are organized into funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriatZ

GOVERNMENTAL FUNDS
General Fund - The General Fund is the general operating fund of the City. It is used to account for all functional resources not required to be accounted for in another fund.

Special Revenue Funds - These funds, such as the Community Development Block Grant Fund, Urban Development Action Grant Fund, and Economic Redevelopment Fund, Telework Fund, Business Revolving Loan Fund, Community Betterment Fund, and Forest Conservation Fund are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes.

Capital Improvement Projects Fund - This fund is used to account for the acquisition of major capital facilities within the Governmental Funds. Revenue sources are grants from other governmental agencies, appropriations from other City funds, outside financing and prior year's appropriated fund balances.

PROPRIETARY FUNDS
Enterprise Funds - Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that costs of providing goods or services are to be recovered primarily through user charges. The Light Fund, Water Fund, Water Pollution Control (Sewer) Fund, Parking Facilities Fund, Golf Course Fund, Property Management Fund and Ice Rink Fund all operate as Enterprise Funds.

INTERNAL SERVICE FUNDS
Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by one department or agency of a government to other departments or agencies on a cost-reimbursement basis. The City's Liability Coverage Service Fund, Worker's Compensation Fund and Health Care Fund are used to provide for potential uninsured liability claims and worker's compensation and health care claims below the City's insurance policy deductibles.

ACCOUNT GROUPS
General Fixed Assets Account Group - This account group is established to account for all fixed assets of the City, other than those accounted for in the Enterprise Funds and property held by the Special Revenue Fund.

General Long-Term Obligations Group - This account group is established to account for long-term obligations of the City, other than those accounted for in the Enterprise Funds.

Specific details of the various programs and activities included in each fund are shown as a component of each fund or department's Program Summary.

BASIS OF ACCOUNTING
Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements.
All governmental and expendable trust funds use the modified accrual basis of accounting. Certain revenues, primarily property taxes, are accrued when they are both measurable and available. In addition, certain grant revenues are accrued when the funds are earned. Expenditures are generally recognized when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long-term debt which is recognized when due.
All proprietary and non-expendable trust funds use the accrual basis of accounting; which means that expenses are recorded when the liabilities are incurred and revenues are recorded when earned.