Fund balance is generally defined as the difference between a fund's assets and liabilities. It is intended to serve as a measure of the financial resources available in a governmental fund. It is essential that governments maintain adequate levels of fund balancve to mitigate current and future risks, ensure stable tax rates, maintain bond rating, and not jeopardize the continuation of necessary public services.
The City Council has set a minimum fund balance target of 28% of expenditures and recurring transfer. This 28% goal for unassigned fund balance only amounts to $5,245,392 for FY 2022. The total estimated fund balance for the General Fund for the year beginning July 1, 2020 is $8,250,000. No other fund balance policies exist.
A summary of the Estimated changes in Fund Balance for FY 2022 follows: