Per the Governmental Accounting Standards Board Statement #54, there are five components of fund balance: nonspendable, restricted, committed, assigned, and unassigned. The City of Folly Beach shall maintain combined unassigned, committed, and assigned fund balances (unreserved fund balance) for the purpose of securing and/or maintaining an excellent credit rating, meeting seasonal cash flow shortfalls, having funds available in the event of a disaster, and funding the needs of the city in the event of an emergency. The unreserved fund balance for the general fund shall be a minimum of 30% of the previous year's audited total general fund actual expenditures exclusive of bond or other financed purchases. This unreserved fund balance, or any part thereof, shall only be used for seasonal cash flow shortfalls, in the event of a disaster as declared by the Mayor, or to fund needs of the city in the event of an unforeseen emergency. This use of the unreserved fund balance, or any part thereof, shall require a two-thirds vote of City Council. Excess unreserved fund balance funds above the minimum 30% shall be available to be invested in accordance with the City of Folly Beach Investment of Funds Policy as adopted by City Council.
(Ord. 16-07, passed 6-26-07; Am. Ord. 14-17, passed 5- 9-17; Am. Ord. 013-23, passed 6-13-23)