Page 121 - Pantego FY22 Operating Budget

C. FUND BALANCE CLASSIFICATION – Governmental Funds

1. Governmental funds report aggregate amounts of five classifications of fund balance
based on the constraints imposed on the use of these resources:

a. Nonspendable. Includes amounts that cannot be spent because they are either
not spendable in form (such as prepaids or inventory) or are legally or
contractually required to be maintained intact (such as endowment funds).

b. Restricted. Includes amounts restricted by external sources (such as creditors,
laws of other governments, etc.) or by constitutional provision or enabling
legislation.

c. Committed. Includes amounts constrained to specific purposes by a government
itself, using its highest decision-making authority to be reported as committed.
Amounts cannot be used for any other purpose unless the government takes the
same highest-level action to remove or change the constraint (such as a Town
Ordinance or Resolution)

d. Assigned. Includes amounts a government intends to use for a specific purpose;
intent can be expressed by the governing body or by an official or body to which
the governing body delegates authority. The Town Council has the authority to
assign amounts for specific purposes.

e. Unassigned. All amounts not included in other spendable classification.

2. Ending fund balances of the Town shall be reported according to the following
classifications:

DEBT SERVICE FUNDS:
400 Interest & Sinking Fund – Restricted

SPECIAL REVENUE FUNDS:
800 Court Security Fund - Restricted
825 Court Technology Fund - Restricted
850 Pantego Fest – Restricted
875 Shamburger Fund – Restricted
880 Cartwright Library Fund – Restricted

CAPITAL PROJECT FUNDS:
300 Capital Projects Fund – Committed
500 Street Improvement Construction Fund – Restricted

3. Order of expenditure -- When committed, assigned and unassigned resources can be
used for the same purpose, funds shall be spent in the sequence of committed
resources first, assigned second, and unassigned last.

4. When it is appropriate for fund balance to be assigned, the Council delegates that
authority to the Town Manager.

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