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CITY OF ROSEVILLE, MINNESOTA NOTES TO FINANClAL STATEMENTS December 31, 2015 8. Long-term obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, and proprietary fund type statement of net position. Bond premiums and discounts, if material, are deferred and amortized over the life of the bonds using the effective interest method. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the cutrent period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 9. Fund balance a. Classification In the fund financial statements, governmental funds report fund classifications that comprise hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose far which amounts in those funds can be spent. • Nonspendable Fund Balance — These are amounts that cannot be spent because they are not in spendable form. • Restricted Fund Balance — These are amounts that are restricted to specific purposes either by a) constraints placed on the use of resources by creditors, grantors, contributors, or laws or regulations of other governments ar b) imposed by law through enabling legislation. • Committed Fund Balance — These are amounts that can only be used for specific purposes pursuant to constraints imposed by the City Council (highest level of decision malcing authority) through resolution. • Assigned Fund Balance — used for specific pu� Council resolution, the balance. These are amounts that are constrained by the City's intent to be poses but are neither restricted nor committed. Pursuant to City Council is authorized to establish assignments of fund • Unassigned Fund Balance — These are residual amounts in the General Fund not reported in any other classification. The General Fund is the only fund that can report a positive unassigned fund balance. Other funds would report a negative unassigned fund balance should the total of nonspendable, restricted and committed fund balances exceed the total net resources of that fund. .•