Within Governmental Funds, every dollar is labeled as one of the following five classifications:
This classification includes amounts which cannot be spent either because they are not in spendable form or because they are legally or contractually required to be maintained intact.
This classification includes amounts which can be spent only for specific purposes because of the City Charter, City Code, state, or federal laws or externally imposed conditions by grantors or creditors.
This classification includes amounts which can be used only for specific purposes determined by a formal action by the City Council. Such formal action may be in the form of an ordinance and may only be modified or rescinded by a subsequent formal action.
This classification includes amounts which are intended by the City to be used for a specific purpose but are neither restricted nor committed. Assignments may be made only by the governmental body or official.
This classification represents the residual positive balance within the General Fund, which has not been restricted, committed, or assigned. In funds other than the General Fund, unassigned fund balances are limited to negative residual balances.