Forest City has recently implemented GAAP reporting and is attempting to determine which of the following special revenue funds should be classified as major funds and therefore be reported in separate columns on the balance sheet and statement of revenues, expenditures, and changes in fund balances for the governmental funds. As the city's external auditor, you have been asked to provide a rationale for either including or excluding each of the following funds as a major fund. Prepare a short report to the city manager that gives your recommendation and explanation. Selected information is provided below.

Forest City

As of (for the year ended) June 30,2014

	Gas Tax Revenue Fund	Housing & Urban Devolp. Grant Fund	Library Fund	All Governmental	Governmental & Enterprise
Total Assets	$160,748	$175,111	$101,549	$1,563,867	$3,497,398
Total Liabilities	72,551	85,433	0	867,533	1,487,225
Total Revenues	138,336	169,964	120,589	1,537,399	2,987,487
Total expenditures	124,225	130,583	119,812	1,496,223	2,684,531