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DRAFT <br /> <br />Nonspendable Fund Balances <br /> consists of amounts that are not in spendable form. <br /> <br />The City has several amounts unavailable for appropriation such as: prepaid items, inventories, etc. <br /> <br />Restricted Fund Balance and Restricted Net Assets <br /> consists of amounts related to externally imposed <br />constraints established by creditors, grantors or contributors; or constraints imposed by state statutory <br />provisions. It is the portion of fund balance that is not appropriable for expenditure or is legally <br />segregated (restricted net assets) for specific future uses. <br /> <br />The City has several items that are legally restricted to a certain use such as: police forfeiture funds, <br />federal and state economic development revolving loans, park dedication fees, and bond proceeds. <br /> <br />Committed Fund Balance <br /> consists of internally imposed constraints. These constraints are established <br />by Resolution of the City Council. Commitments may be changed or lifted only by the government <br />taking the same formal action that imposed the constraint originally. <br />Assigned Fund Balance <br />consists of internally imposed constraints. These constraints reflect the <br />Council and/or management. Pursuant to City Council Resolut <br />Administrative Services and/or City Administrator is authorized to establish assignments of fund balance. <br /> <br />Unassigned Fund Balance <br />is the residual classification for the general fund and also reflects negative <br />residual amounts in other funds. <br /> <br />General Fund The unassigned fund balance should be at a minimum 50% of operating expenditures <br />strive to follow this <br />recommendation. <br /> <br />Enterprise Funds It is expected that unrestricted net assets will be large. These funds have large <br />investment in infrastructure that needs to be maintained. The City will periodically complete a rate study <br />for these funds to ensure rates and unrestricted net assets are sufficient to operate and maintain these <br />activities. <br /> <br /> <br />Review and Approval <br /> <br />The fund balance policy shall be formally approved and adopted by resolution of the City Council and <br />any future changes to the policy must be approved by the City Council. <br /> <br />th <br />Approval by the City Council the 28 Day of April, 2014. <br /> <br /> <br /> <br /> ________________________________ <br /> David Grant, Mayor <br /> ATTEST: <br /> <br /> <br />_______________________________ <br />Amy Dietl, City Clerk <br /> <br />Revised 04/28/2014 <br />