2012 Budget - South Suburban Parks and Recreation

South Suburban Park and Recreation District
Summary of Significant Financial Policies
Fund Balance (continued)
Enterprise Fund Restrictions (continued)
2007 Revenue Bond $355,500
Per the 2007 Golf Course and Ice Arena Facilities Refunding Revenue Bonds
covenants, this amount is restricted to prevent deficiencies in the payment of bonds.
1999 Revenue Bond $242,080
Per the 1999 Golf Course and Ice Arena Facilities Revenue Bonds covenants, this
amount is restricted to prevent deficiencies in the payment of bonds.
The Enterprise Fund has the following Assignments:
Subsequent Year’s Expenditures $205,642
The Enterprise Fund assigns the amount of fund balance used in the following year’s
annual budget.
The Enterprise Fund has Unassigned Fund Balance (internal designation):
7% Reserve $1,347,319 ($1,536,410 - $189,091 Emergency Reserve)
The District has a practice of holding 7% of the budgeted operational expenditures for
cash flow purposes and emergencies. This amount includes the 3% Emergency
Reserve. This amount is not included in the annual budget.
Any remaining fund balance in the Enterprise Fund is unassigned.
Fund balances are anticipated to change more the 10% due to the following reasons:
The Budgeted fund balance in the General Fund shows a significant change. This is
mainly due to the CHV Reserve and the 2000 1 Mill Reserve. The total reserves for
these two items are included as expenditures in the 2012 Budget, as the District may
have to use some or all of these funds for operational or capital expenditures.
Budgeting the total amounts of these reserves causes fund balance to change more
than 10%.
The Conservation Trust fund balance change is due to anticipated spending of all
funds on 2012 capital projects.
The 2010 1 Mill fund balance change is due to anticipated spending of funds on
approved 2012 capital projects ($468,150) and park irrigation water expenditures
($1,119,688). However, the 2012 Budget also includes undesignated funds of
$945,370. A portion of these funds may be spent in 2012 if any eligible projects are
approved. Otherwise the undesignated amount will remain in fund balance for future
years.
65