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City of Raleigh

Financial Section

Assigned Fund Balance

 – This classification includes a portion of fund balance that the City of Raleigh intends 

to use for specific purposes.  The City of Raleigh City Council has designated the City Manager as the delegated 

Official that can “assign” portions of fund balance per the City of Raleigh’s fund balance goal policy. 

Subsequent year’s appropriation

 – portion of fund balance that is appropriated in the next year’s budget that is 

not already classified in restricted or committed.  The governing body approves the appropriation; all budget 

amendments regardless of amount must be submitted to the City council for approval. 

Assigned for community development

 – portion of fund balance the City intends to use for community 

development across the City. 

Assigned for City projects

– portion of fund balance that the City intends to use for specific projects. 

Assigned for disaster recovery

– portion of fund balance that the City intends to use for disaster recovery efforts. 

Assigned for debt service

– portion of fund balance that the City intends to use for future debt service payments.  

Assigned for parks and recreation

 – portion of fund balance that the City intends to use for specific parks and 

recreation programs.  

Unassigned Fund Balance

 – This classification includes the portion of fund balance that has not been restricted, 

committed, or assigned to specific purposes or other funds. 

When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, 

the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, 

assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of 

committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has 

provided otherwise in its commitment or assignment actions. 

The City of Raleigh has also adopted a minimum fund balance policy for the general fund which instructs 

management to conduct business of the City in such a manner that available fund balance is at least equal to or 

greater that 14% of next years budgeted expenditures.  Any portion of the general fund balance in excess of 14% of 

budgeted expenditures may be appropriated for one‐time expenditures and may not be used for any purpose that 

would obligate the City in a future budget. 

10. Pensions 

For purposes of measuring the net pension asset, deferred outflows of resources and deferred inflows of resources 

related to pensions, and pension expense, information about the fiduciary net position of the Local Governmental 

Employees’ Retirement System (LGERS) and additions to/deductions from LGERS’ fiduciary net position have 

been determined on the same basis as they are reported by LGERS.  For this purpose, plan member contributions 

are recognized in the period in which the contributions are due.  The City of Raleigh’s employer contributions are 

recognized when due and the City of Raleigh has a legal requirement to provide the contributions.  Benefits and 

refunds are recognized when due and payable in accordance with the terms of LGERS.  Investments are reported 

at fair value. 

11. Interest rate swap 

The City enters into interest rate swap agreements to modify interest rates on outstanding debt. The interest rate 

swaps are reported in the net position statements for government‐wide and proprietary funds at fair market value.