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<br />Undesignated Fnnd Balance and Unrestricted Net Assets - Current resources available for which there <br />are no government self-imposed limitation or set spending plan. <br /> <br />General Fund - The unreserved fund balance should be at a minimum 50% of operating expenditures <br />(this includes the designation for cash flows). The City's goal will be to follow this recommendation. <br /> <br />Special Revenue Funds - Most of these funds will be designated for specific purposes and the <br />undesignated fund balances should be near zero. <br /> <br />Debt Service Funds - Most of these funds will be reserved for debt service and the undesignated fund <br />balance should be near zero. <br /> <br />Capital Projects Funds - Most of these funds will be designated for the capital improvement plan or <br />reserved for a specific project and the undesignated fund balance should be near zero. Specific capital <br />improvement funds may be negative because they are waiting on funding but should zero out at the end of <br />the proj ect. <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 />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 />Approval by the City Council the _ Day of <br /> <br />,2008. <br /> <br />Stanley D. Harpstead, Mayor <br /> <br />Date <br /> <br />Jim Willis, Interim City Administrator <br /> <br />Date <br /> <br />\\Metro-inet\ArdenHills\Finance\Policies and Procedures\Policies\Fund Balance Policy. doc <br />Last printed 2/20/2008 9:36 AM <br />