Page 327 - City of Colleyville FY22 Adopted Budget

City of Colleyville page 3 of 4
General and Utility Fund Balance Policy

made. The amount subject to the constraint may be determined in the
subsequent period.

Assigned Fund Balance
The City Council has authorized the City's Chief Financial Officer as the official
authorized to assign fund balance to a specific purpose as approved by this fund
balance policy and City Council action.

Minimum Unassigned Fund Balance

It is the goal of the City to achieve, and maintain an unassigned fund balance
equal to three months of that year’s budgeted expenditures for both the General
and Utility Funds. The City Council may declare a fiscal emergency and withdraw
any amount of the unassigned General and Utility Fund Balances for purposes of
addressing the fiscal emergency. Any such action must also provide for
necessary appropriations to restore the designated fund balance to the balance
within a three-year.

Order of Expenditure of Funds

When multiple categories of fund balance are available for expenditure (for
example, a construction project is being funded partly by a grant, funds set aside
by the City Council, and unassigned fund balance), the City will start with the
most restricted category and spend those funds first before moving down to the
next category with available funds, unless specified otherwise by the City
Council.

Procedures:

In order to achieve the objectives of this policy, the following guidelines shall be
adhered to:

1. As part of the annual budget process, the Chief Financial Officer will
estimate and prepare a projection of the year-end unassigned fund
balances. Such projection will include an analysis of trends in fund
balance levels on an historical and future projection basis. The Chief
Financial Officer shall present the findings to the City Council as a part of
the budget review process for the ensuing fiscal year.

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