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CITY OF ROSEVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 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 for which amounts in those funds can be spent. Nonspendable Fund Balance Î These are amounts that cannot be spent because they are not in spendable form. Restricted Fund Balance Î 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 or b) imposed by law through enabling legislation. Committed Fund Balance Î These are amounts that can only be used for specific purposes pursuant to constraints imposed by the City Council (highest level of decision-making authority) through resolution. Assigned Fund Balance Î These are amounts that are constrained by the CityÓs intent to be used for specific purposes but are neither restricted nor committed. Pursuant to Council resolution, the City Council is authorized to establish assignments of fund balance. Unassigned Fund Balance Î 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. When both restricted and unrestricted resources are available for use, it is the CityÓs policy to first use restricted resources, and then use unrestricted resources as they are needed. When committed, assigned, or unassigned resources are available for use, it is the CityÓs policy to use resources in the following order: 1) committed, 2) assigned, and 3) unassigned. b. Minimum Fund Balance It is the CityÓs policy that at the end of each year, the City will maintain the unrestricted portion of the fund balance for cash flow in a range equal to 35% to 50% of the General Fund operating expenditures budgeted for next year. At December 31, 2024 this percentage was 38% and therefore the minimum fund balance was met. 10. Net position The Statement of Net Position reports restrictions in net position for community development revenues which are used for building code enforcement, development and redevelopment activities. Telecommunication revenues are used for the administration and maintenance of telecommunication activities. Park dedication proceeds are used to create parks or park improvements within a new development area. Law Enforcement is proceeds received from 50 Qbhf!69!pg!334