FY25 GFOA Budget - Flipbook - Page 15
Return to Table of Contents
FINANCIAL POLICY OVERVIEW
restricted fund balance, 3) committed fund balance, 4) assigned fund balance, and 5)
unassigned fund balance. 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 3 months without their typical revenue streams. More information on
these classifications can be found in the appendix.
Debt Policy & Limitations:
The District enters into debt transactions to finance additions of machinery, equipment,
and major improvements to fire facilities. Before debt can be incurred it must be approved
by the District’s Board of Trustees and be within the District’s defined debt limit. Because
the District is a non-home rule entity, it has a designated debt limit that is controlled by 70
ILCS 705/12. This states that the District cannot incur debt in any manner, or for any
purpose, in an amount exceeding 5.75% of its current EAV.
Bond Rating:
The District’s long-term municipal bond rate is 4.05% with an average AA credit rating.
Investment Policy:
The District’s general credit risk policy is to apply the prudent person rule: Investments
shall be made with the exercise of judgment and care, under circumstances then prevailing,
which individuals of prudence, discretion, and intelligence exercise in the management of
their own affairs, not for speculation, but for investment, considering the probable safety of
their capital, as well as the probable income to be derived.
P a g e 15 |BARTLETT FIRE PROTECTION DISTRICT | BUDGET OVERVIEW
