Page 409 - FY 2026-2027 Adopted Budget Book

Committed. That portion of the fund balance that is constrained by a formal action of the
government’s highest level of decision-making authority, the City Council. These constraints can
only be removed or changed by taking the same type of action employed to commit these amounts.

Assigned. That portion of the fund balance not ‘restricted’ or ‘committed’ that has a specific
purpose expressed by the governing body or a body/official to which the governing body delegates
authority. Only resources in other governmental funds can be assigned. The General Fund cannot
assign its fund balance.

Unassigned. A residual amount for the General Fund that is not classified in any of the other 4
categories and is available for any purpose. Negative residual amounts for all other governmental
funds are reported in this classification.

Enabling Legislation. Authorizes the government to assess, levy, charge, or otherwise mandate
payment of resources and includes a legally enforceable requirement that those resources be used
only for the specific purpose.

General Fund. A fund that accounts for all financial resources not accounted for and reported in
another fund.

Special Revenue Fund. A fund whose revenue source(s) is restricted or committed to a specific
purpose other than capital projects or debt service. Usually has one or more revenue resources
that is not a transfer from another fund.

Capital Projects Fund. A fund that accounts for all financial resources that are restricted,
committed, or assigned to expenditures for capital outlays.

Debt Service Fund. A fund that accounts for all financial resources that are restricted, committed,
or assigned to expenditures for principal and interest of debt obligations.

Enterprise Fund. A fund that accounts for operations that are financed and operated in a manner
similar to private business enterprises, where the intent of the governing body is that the cost of
providing goods or services to general public on a continuing basis be financed or recovered
primarily through user charges.

Permanent Fund. Funds to account for resources that are restricted to the extent that only
earnings, and not principal, may be used for purposes that support the City of Bedford’s programs
that are for the benefit of the city and/or its citizens.

Working Capital. The measurement of the operating liquidity of an enterprise fund by subtracting
the current liabilities from the current assets.

PRIORITY OF FUND BALANCE CATEGORIES:
In lieu of a policy for unrestricted fund balance, funds that are constrained in the remaining
categories will be used in the order of: 1) committed, 2) assigned, 3) unassigned. Therefore, when
multiple categories of fund balance are available for expenditure (i.e. a construction project funded
partly by 1) a grant, 2) funds set aside by the City Council, & 3) unassigned funds), the City will
start with the most restricted category and spend those funds first before moving down to the next
category with available funds. Normally, this would result in the use of restricted, then committed,
then assigned, and lastly unassigned fund balance.