Fiscal & Budgetary Guidelines
Fund Balance Policies
�
�
�
�
Unassigned Fund Balance will mean funds that remain available for appropriation by the Town Council after all assignments and commitments for future expenditures , previous Council designations , and required use restrictions by external sources have been calculated . The Town will define these remaining amounts as “ unassigned fund balance .” The Town of Garner will strive to maintain unassigned fund balance in the General Fund at a level sufficient to meet its objectives . The Town will target an unassigned fund balance at the close of each fiscal year equal to at least 30 % of the closing fiscal year ’ s General Fund operating budget ; at no time shall the unassigned fund balance fall below 25 % of the closing fiscal year ’ s General Fund operating budget . Unassigned fund balances in excess of the target 30 % may be appropriated from time to time for pay-as-you-go capital and other one-time uses . The Town Council may , from time-to-time , appropriate fund balance that will reduce unassigned fund balance to an amount below the 25 % policy for the purposes of a declared fiscal emergency or other such global purpose as to protect the long-term fiscal security of the Town of Garner . In such circumstances , the Council will adopt a plan to restore the unassigned fund balance to the 30 % policy level within 36 months from the date of the appropriation . If restoration cannot be accomplished within such time period without severe hardship to the Town , then the Council will establish a different but appropriate time period . The Town will establish and maintain within the General Fund designations and / or commitments by Council for special revenue funds that will be used to account for the proceeds of specific revenue sources to finance or fund specified activities and projects that are required by statute , ordinance , resolution or executive order .
21 4