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CITY OF ROSEVILLE, MINNESOTA <br /> NOTES TO FINANCIAL STATEMENTS <br /> December 31, 2016 <br /> <br /> <br /> <br /> <br />9. Fund balance <br /> <br />a. Classification <br /> <br /> In the fund financial statements, governmental funds report fund classifications that comprise <br /> hierarchy based primarily on the extent to which the City is bound to honor constraints on the <br /> specific purpose for which amounts in those funds can be spent. <br /> <br /> Nonspendable Fund Balance – These are amounts that cannot be spent because they are <br />not in spendable form. <br /> <br /> Restricted Fund Balance – These are amounts that are restricted to specific purposes either <br />by a) constraints placed on the use of resources by creditors, grantors, contributors, or <br />laws or regulations of other governments or b) imposed by law through enabling <br />legislation. <br /> <br /> Committed Fund Balance – These are amounts that can only be used for specific purposes <br /> pursuant to constraints imposed by the City Council (highest level of decision making <br /> authority) through resolution. <br /> <br /> Assigned Fund Balance – These are amounts that are constrained by the City’s intent to be <br /> used for specific purposes but are neither restricted nor committed. Pursuant to <br />Council resolution, the City Council is authorized to establish assignments of fund <br />balance. <br /> <br /> Unassigned Fund Balance – These are residual amounts in the General Fund not reported <br />in any other classification. The General Fund is the only fund that can report a positive <br />unassigned fund balance. Other funds would report a negative unassigned fund balance <br />should the total of nonspendable, restricted and committed fund balances exceed the total <br />net resources of that fund. <br /> <br /> When both restricted and unrestricted resources are available for use, it is the City’s policy to <br /> first use restricted resources, and then use unrestricted resources as they are needed. When <br /> committed, assigned, or unassigned resources are available for use, it is the City’s policy to <br /> use resources in the following order: 1) committed, 2) assigned, and 3) unassigned. <br /> <br /> a. Minimum Fund Balance <br /> <br /> It is the City’s policy that at the end of each year, the City will maintain the unassigned <br /> portion of the fund balance for cash flow in a range equal to 35% to 45% of the General <br /> Fund operating expenditures. <br /> <br />10. Net position <br /> <br /> The Statement of Net Position reports restrictions in net position for community development <br /> revenues which are used for building code enforcement, development and redevelopment <br /> activities. Telecommunication revenues are used for the administration and maintenance of <br /> telecommunication activities. Park dedication proceeds are used to create parks or park <br /> <br />48 <br />Item 8: Attachment D