FY25 GFOA Budget - Flipbook - Page 167
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APPENDIX
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 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.
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