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NOTE 7 — NET POSITION/FUND BALANCES (CONTINUED) <br />B. Governmental Fund Balance Classifications <br />At December 31, 2023, a summary of the City's governmental fund balance classifications are as follows: <br />Special Revenue <br />Capital Projects <br />Tax Increment <br />Community Financing Vehicle and <br />Special Street <br />General EDA Center District No. 5 Equipment <br />Projects Improvements Nonmajor <br />Total <br />Restricted <br />Economic development <br />$ — $ 1,429,697 $ — $ — $ — <br />$ — $ — $ — <br />$ 1,429,697 <br />Tax increment <br />— — — 45,226 — <br />— — 601 <br />45,827 <br />Communications <br />— — — — — <br />— — 226,082 <br />226,082 <br />Public safety <br />— — — — — <br />— — 30,164 <br />30,164 <br />Parks and recreation <br />— — — — — <br />— — 76,189 <br />76,189 <br />Conservation <br />— — — — — <br />— — 32,306 <br />32,306 <br />Debt service <br />— — — — — <br />— — 413,745 <br />413,745 <br />Total restricted <br />— 1,429,697 — 45,226 — <br />— — 779,087 <br />2,254,010 <br />Assigned <br />Levy reduction <br />2,047,160 — — <br />— — — — — 2,047,160 <br />Balance subsequent budget <br />976,000 — — <br />— — — — — 976,000 <br />Community center <br />operations <br />— — 318,133 <br />— — — — — 318,133 <br />Other capital projects <br />— — — <br />— 2,557,036 2,691,259 — — 5,248,295 <br />Street reconstruction <br />— — — <br />— — — 1,286,625 — 1,286,625 <br />Total assigned <br />3,023,160 — 318,133 <br />— 2,557,036 2,691,259 1,286,625 — 9,876,213 <br />Unassigned <br />5,528,190 — — <br />— — — — — 5,528,190 <br />Total <br />$ 8,551,350 $ 1,429,697 $ 318,133 $ <br />45,226 $ 2,557,036 $ 2,691,259 $ 1,286,625 $ 779,087 $ 17,658,413 <br />C. Minimum Fund Balance Policy <br />The City Council has formally adopted a policy regarding the minimum unassigned fund balance for the <br />General Fund. The policy establishes a minimum unassigned General Fund balance of between 35.0 percent <br />and 50.0 percent of the subsequent year's budgeted revenues and transfers or a minimum five months of <br />expenditures and transfers. At December 31, 2023, the unassigned fund balance of the General Fund was <br />60.7 percent of the subsequent year's budgeted revenues and transfers, compared to 62.5 percent for the <br />prior year. <br />-49- <br />