Notes to Financial Statements

The government-wide financial statements are prepared on a full accrual basis using the economic resources measurement focus, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred regardless of the timing of the cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Proprietary funds record both operating and non-operating revenues and expenses. Operating revenues and expenses generally result from providing services, producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the proprietary and internal service funds are charges to customers for sales and services. Operating expenses for proprietary funds and internal service funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

Governmental fund financial statements are prepared on the modified accrual basis of accounting using the current financial resources measurement focus. Under modified accrual basis, revenues are recognized when they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers property tax revenues to be available if they are collected within 60 days of the end of the current period. Property taxes, sales and liquor taxes, franchise fees, and interest associated with the current fiscal period are all considered to be susceptible to accrual; and so have been recognized as revenues of the current period. Expenditures generally are recorded when a liability is incurred. An exception to this general rule includes principal and interest on general long-term debt, which is recognized when due, and expenditures related to compensated absences, claims, and judgments are recorded only when payment is due.

When both restricted and unrestricted resources are available, restricted resources will be used first for incurred expenses, and then unrestricted as needed. When using the unrestricted resources, committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.

The City reports the following major funds in the governmental fund financial statements:

General Fund

The General Fund is the government’s primary operating fund that is used to account for all financial resources, except those required to be accounted for in another fund.

Foothills Levy

The Foothills Levy fund, a capital projects fund, is used to further preserve and protect the Boise Foothills and Boise River. This fund is used to account for financial resources used for the acquisition, construction, and improvement of major capital assets which were collected through the Foothills levy approved by voters in both 2001 and 2015.

Capital Improvement

Capital Improvement, a capital projects fund, is used to account for expenditures to be used for the acquisition or construction of major capital assets and projects of the City other than those financed by proprietary funds.

The City reports the following major funds in the proprietary fund financial statements:

Airport

The Airport fund is used to account for the activities related to the operation of the City-owned municipal airport.