Page 48 - CityofColleyvilleFY23AdoptedBudget

grants and child safety fees.

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

. Assigned fund balance - comprises amounts intended to be used by the City of Colleyville for speci c
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.

. Unassigned fund balance - is the residual classi cation of the General Fund and Utility Fund and includes
all amounts not contained in other classi cations. 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 The ordinance must either be approved or rescinded, as applicable, prior to the last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 scal year for which the commitment is
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 Of cer as the of cial authorized to assign fund
balance to a speci c 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 scal
emergency and withdraw any amount of the unassigned General and Utility Fund Balances for purposes of
addressing the scal 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 rst before moving down to the next category
with available funds, unless speci ed otherwise by the City Council.

Procedures:

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

. As part of the annual budget process, the Chief Financial Of cer will estimate and prepare a projection of
the year-end unassigned fund balances. Such projection will include an analysis of trends in fund balance

City of Colleyville | Budget Book 2023 Page 48