A fund is a grouping of related accounts that is used to maintain control over resources that have been separated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds The City maintains various individual governmental funds which are further organized into three types by respective spending purposes and funding restrictions (general fund, special revenue funds, and capital project funds). Description of each fund can be found in the “Governmental Funds (Detail)” section below.
Proprietary Funds The City maintains one type of proprietary (Enterprise) fund, which is used to
report water utility operation in financial statements.
Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties other than the City of Tustin. The City has three fiduciary funds. The first fiduciary fund is the Successor Agency, which was created on February 1, 2012 with the dissolution of the Tustin Community Redevelopment Agency (RDA). The Successor Agency’s primary responsibility is to wind down the affairs of the former Tustin Community Redevelopment Agency, including paying off the former RDA’s debts. The second fiduciary fund is the Other Post-Employment Benefit (OPEB) Trust Fund, which is used to account for the assets in the Section 115 trust with the Public Agency Retirement Services (PARS) for pre-funding the City’s OPEB obligations. The City Council approved the establishment of the trust in April 2017, and the City has made several deposits to the trust since its inception.
The third fiduciary fund is a custodial fund that is used to account for the assets of Community Facilities Districts 04-1, 06-1, 07-1, and 2014-1.
Governmental Funds(Detail) •
The General Fund is the primary operating fund of the City and is used to account for all revenues and expenditures that are not required to be accounted for in another fund. • Capital Projects Funds are used to account for financial resources including grants, to be used for the acquisition or construction of major capital facilities. • Gas Tax Fund accounts for revenues and expenditures apportioned under the Street and Highways Code of the State of California. Expenditures may be made for any street-related purpose allowable under the Code. • Community Development Block Grant Fund is used to account for funds received from U.S. Department of Housing and Urban Development to meet low-income housing and community development needs. • Asset Forfeiture Fund is used to account for monies received from the Federal government that are used for special law enforcement purchases.
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