BFPD FY26 GFOA Budget - Flipbook - Page 172
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resources is reported as a fund liability of a governmental fund. Long-term liabilities expected to
be financed from proprietary fund operations, when applicable, are accounted for in those funds.
Debt service/Debt limits – The District enters into debt transactions to finance additions of
machinery, equipment, and major improvements to fire facilities. An example of this includes the
purchase of two new fire engines in FY20. Before debt can be incurred by the District, it must
(1) be approved by the District’s Board of Trustees and (2) be within the District’s defined debt
limit. This debt limit is 5.75% of the District’s current EAV.
Presently, the District does not have deferred charges on refunding debt, and as of the District’s
most recent audit (balance taken 12/31/2024), the District’s debt balance was $293,488. Through
regular payments made utilizing a payment schedule, this number continued to decrease in
FY25. Another evaluation of the District’s debt service will be made during the FY25 audit. It
should be noted that debt service for the purchase of 2 fire engines (FY20) was fully completed
in FY25, and bond payments to the Village of Bartlett for the financing of Station 3 will be fully
complete in FY26. This marks the end of two significant recurring payments.
Finance Leases – Leases that span more than twelve months and that do not transfer ownership
are recognized as a right-of-use asset and finance lease liability. The right-of-use assets are
measured at an amount equal to the present value of the related lease liability plus any lease
payments made prior to the lease term, less lease incentives, and plus ancillary charges necessary
to place the lease into service. The right-of-use assets are amortized on a straight-line basis over
the life of the related lease. Finance leases that transfer ownership are recognized as capital
assets at cost and a related lease liability.
Bond ratings: Long-Term Municipal Bond Rate as of District’s most recent audit (2024)—
4.08% with an average AA rating.
Fund Balances
In the fund financial statements, governmental funds report aggregate amounts for five
classifications of fund balances based on the constraints imposed on the use of these resources.
Non-spendable fund balance - The non-spendable fund balance classification includes amounts
that cannot be spent because they are either (a) not in spendable form - prepaid items or
inventories; or (b) legally or contractually required to be maintained intact. The spendable
portion of the fund balance comprises the remaining four classifications: restricted, committed,
assigned, and unassigned.
Restricted fund balance - This classification reflects the constraints imposed on resources either
(a) externally by creditors, grantors, contributors, or laws or regulations of other governments; or
(b) imposed by law through constitutional provisions or enabling legislation.
Committed fund balance - Amounts can only be used for specific purposes pursuant to
constraints imposed by ordinances of the District Board of Trustees—the government’s highest
level of decision-making authority. These committed amounts cannot be used for any other
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