Page 322 - City of Colleyville FY22 Adopted Budget

City of Colleyville page 2 of 4
General and Utility Fund Balance Policy

balances are higher than the minimum level designated by the Government
Finance Officers Association recommended practice on determining the
appropriate level of unassigned fund balance for the General and Utility Funds.

Definitions

Fund Equity - A fund's equity is generally the difference between its assets and
its liabilities.

Fund Balance - An accounting distinction is made between the portions of fund
equity that are spendable and nonspendable. These are broken up into five
categories:

1. Nonspendable fund balance - includes amounts that are not in a spendable
form or are required to be maintained intact. Examples are inventory or
permanent funds.

2. Restricted fund balance - includes amounts that can be spent only for the
specific purposes stipulated by external resource providers either constitutionally
or through enabling legislation. Examples include grants and child safety fees.

3. Committed fund balance - includes amounts that can be used only for the
specific purposes determined by a formal action of the City Council.
Commitments may be changed or lifted only by the City Council.

4. Assigned fund balance - comprises amounts intended to be used by the City of
Colleyville for specific purposes. Intent can be expressed by the City Council. In
governmental funds other than the General Fund, assigned fund balance
represents the amount that is not restricted or committed. This indicates that
resources in other governmental funds are, at a minimum, intended to be used
for the purpose of that fund.

5. Unassigned fund balance - is the residual classification of the General Fund
and Utility Fund and includes all amounts not contained in other classifications.
Unassigned amounts are technically available for any purpose.

Policy
Committed Fund Balance
The City Council is the City's highest level of decision-making authority and the
formal action that is required to be taken to establish, modify, or rescind a fund
balance commitment is an ordinance approved by the Council at the City Council
meeting. The ordinance must either be approved or rescinded, as applicable,
prior to the last day of the fiscal year for which the commitment is

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