BFPD FY26 GFOA Budget - Flipbook - Page 173
| APPENDIX
purpose unless the District Board of Trustees removes the specified use by ordinance. This
classification also includes contractual obligations to the extent that existing resources in the
fund have been specifically committed for use in satisfying those contractual requirements.
Assigned fund balance - This classification reflects assets constrained by the expressed written
intent of the District Board of Trustees for capital equipment and/or capital projects.
Unassigned fund balance - This fund balance is the residual classification for the General Fund.
It is also used to report negative fund balances in other governmental funds. When both restricted
and unrestricted resources are available for use, it is the District’s policy to use externally
restricted resources first, then unrestricted resources—committed, assigned, and unassigned—in
order as needed. The District does not have a stabilization policy established.
The District’s flow of funds assumption prescribes that the funds with the highest level of
constraint are expended first. If restricted or unrestricted funds are available for spending, the
restricted funds are spent first. If different levels of unrestricted funds are available for spending,
the District considers committed funds to be expended first followed by assigned and, lastly
unassigned funds.
The District’s goal for fund balance minimums in the General and Ambulance fund is 25%. This
is based on the 3-month rule, which states that local governments should have enough reserves in
their primary operating funds to maintain service delivery for approximately 3 months without
their typical revenue streams.
Net Position Classifications
In the government-wide financial statements, equity is shown as net position and classified into
three components:
Net investment in capital assets - These amounts consist of capital assets net of accumulated
depreciation and reduced by the outstanding balances of any bonds, notes, or other borrowings
that are attributable to the acquisition, construction, or improvement of those assets. Net
investment in capital assets excludes unspent bond or other debt proceeds.
Restricted net position - These amounts consist of net position with constraints placed on its use
either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of
other governments; or (2) law through constitutional provisions or enabling legislation. It is the
District's policy to consider restricted net position to have been depleted before unrestricted net
position is applied.
Unrestricted net position - These amounts consist of all other net position that does not meet the
definition of "restricted" or "net investment in capital assets".
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