Types of Governmental Funds
Governmental funds are used to account for most, if not all, of a government’s tax-supported activities. The general fund, special revenues funds, debt service funds, and capital projects funds are considered governmental funds.
1. GENERAL FUND
GENERAL FUND: The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund.
2. SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for proceeds of specific sources (other than for major capital projects) that are legally restricted to expenditure for specified purposes.
AIR QUALITY IMPROVEMENT FUND (AQMD): Established to account for the City's share of funds received under Health & Safety Code Section 44223 (AB 2766) to finance mobile source air pollution reduction programs consistent with the California Clean Air Act of 1988.
COMMUNITY DEVELOPMENT BLOCK GRANT FUND (CDBG): This fund accounts for revenues received from the Department of Housing and Urban Development. These revenues must be expended to accomplish one of the following objectives: elimination of slum or blight, benefit low and moderate income persons, or to meet certain urgent community development needs.
DRAINAGE FEES FUND: Established to account for the construction and maintenance of the City's drainage system. Financing is provided by fees charged to residential and commercial developers.
FIRE SYSTEM DEVELOPMENT FEES FUND: Established to account for the receipt and disbursement of the development impact fees established by Ordinance No 89-1 for future construction of fire protection facilities and equipment for north Costa Mesa.
GAS TAX FUND: Established to account for the receipt and disbursement of funds used for construction and maintenance of the road network system of the City. Financing is provided by the City's share of State gasoline taxes.
HOME PROGRAM FUND: Established to account for the receipt and disbursement of funds received under the Federal Home Investment Partnership Program of the Department of Housing and Urban Development. These revenues must be expended for acquisition, rehabilitation, and new construction of rental housing.
LOCAL LAW ENFORCEMENT BLOCK GRANT FUND (LLEBG): Established to account for Federal grant monies provided by the 1998 Appropriations Act, Public Law 105-119. Funds are restricted for projects utilized to reduce crime and improve public safety.
LOW AND MODERATE INCOME HOUSING FUND: Established per Section 33334.3 of the Health and Safety Code to account for 20% of tax increment received by the Costa Mesa Redevelopment Agency which is to be expended for the purpose of increasing, improving, and preserving the low and moderate-income housing available at affordable housing costs to persons and families of low or moderate-income and to very low-income households.
NARCOTICS FORFEITURE FUND: Established to account for receipt and disbursement of narcotic forfeitures received from County, State and Federal agencies pursuant to Section 11470 of State Health and Safety Code and Federal Statute 21USC Section 881.
PARK DEVELOPMENT FEES FUND: Established to account for the development of new park site and playground facilities. Financing is provided by fees charged to residential and commercial developers.
PROPOSITION 172 FUND: Established to account for the receipt and disbursement of voter-approved one-half cent permanent increase in the State sales tax in November 1993. These revenues must be expended for public safety purposes.
RENTAL REHABILITATION PROGRAM FUND: Established to account for revenues received from the Department of Housing and Urban Development under Section 17 of the U.S. Housing Act of 1937. These revenues must be expended to provide assistance to rehabilitate primarily privately-owned residential rental property.
SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND (SLESF): Established to account for the receipt and disbursement of funds received under the State Citizen's Option for Public Safety (COPS) program allocated pursuant to Government Code Section 30061 enacted by AB 3229, Chapter 134 of the 1996 Statues. These COPS/SLESF funds are allocated based on population and can only be spent for "front line municipal police services" as per Government Code Section 30061 (c) (2).
TRAFFIC IMPACT FEES FUND: Established to account for the receipt and disbursement of funds for off- site transportation improvements Citywide. Financing is provided by fees charged to residential and commercial developers.
3. DEBT SERVICE FUNDS
Debt Service Funds are used to account for accumulation of resources for, and the payment of, general long-term debt including principal and interest.
FINANCING AUTHORITY DEBT SERVICE FUND: To accumulate monies for payment of the Lease Revenue Bonds,Agency Revenue Bonds, Special Tax Bonds,and Community Facility Bonds.
REDEVELOPMENT DEBT SERVICE FUND: To accumulate monies for payment of the 1993 Tax Allocation Refunding Bonds, the promissory note due upon demand to the City and other developer loans. All tax increments received are placed in this fund and are used to retire debt (bonded or loans) in accordance with the Health and Safety Code.
4. CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds).
CAPITAL OUTLAY FUND: Established to account for the construction of capital facilities financed by the City's General Fund and any grant not accounted for in a special revenue fund.
MEASURE "M" CONSTRUCTION FUND: Established to account for the expenditure of the April 1991 voter-approved one-half percent sales tax for local transportation improvements.
REDEVELOPMENT PROJECTS FUND: Established to account for financial resources to be used for acquisition or construction of major capital facilities within the Redevelopment Project Areas. Financing is to be provided by the Redevelopment Agency.
VEHICLE PARKING DISTRICTS FUND: Established under the Vehicle Parking District Law of 1943 to provide vehicle facilities in the downtown area. Financing is provided through specific property tax levies.
PROPRIETARY FUNDS
Proprietary funds are used to account for a government’s business-type activities. Enterprise funds and internal service funds are considered proprietary funds. The City does not have an enterprise fund.
INTERNAL SERVICE FUNDS
Internal Service Funds are used to report any activity that provides goods or services to other funds, departments, or agencies of the primary government and its component units, or to other governments, on a cost- reimbursement basis.
EQUIPMENT REPLACEMENT FUND: Established to account for all motorized equipment used by City departments.
SELF-INSURANCE FUND: Established to account for the receipt and disbursement of funds used to pay workers' compensation, general liability, and unemployment claims filed against the City.
From city of Costa Mesa FY 08/09 Budget
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