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ACCOUNTING POLICIES AND PROCEDURES <br /> <br />CITY OF SUNNY ISLES BEACH <br /> <br />expenditure in the subsequent year depending on the timing of the project/reserve for which it was <br />assigned. <br /> <br />4. NON-SPENDABLE FUND BALANCE <br /> <br />Non-spendable fund balance is established to report items that are not expected to be converted to cash <br />such as inventory and prepaid items; items not currently in cash form such as the long-term amount of <br />loans and notes receivable as well as property acquired for resale; and, items legally or contractually <br />required to be maintained intact such as the corpus (or principal) of a permanent fund. <br /> <br />5. MINIMUM LEVEL OF UNASSIGNED FUND BALANCE <br /> <br />Unassigned fund balance is the residual classification for the general fund and represents fund balance <br />that has not been restricted, committed or assigned to specific purposes within the general fund. <br /> <br />RESERVATIONS OF FUND BALANCE (GENERAL FUND): <br /> <br />COMMITTED FUND BALANCE <br /> <br />The City Commission hereby establishes the following committed fund balance reserves in the General Fund: <br /> <br />Hurricane/Emergency and Disaster Recovery Operating Reserve - The Hurricane/Emergency <br />and Disaster Recovery Operating Fund Balance Reserve is to be maintained by the City Manager <br />at a minimum level of $10,000,000 for the purposes of responding to and providing relief and <br />recovery efforts to ensure the maintenance of services to the public during <br />hurricane/ emergency/disaster situations. Such emergencies include, but are not limited to <br />hurricanes, tropical storms, flooding, terrorist activity and other natural or man-made disasters. <br />Additional funds may be appropriated when necessary via a budget amendment ordinance. This <br />Reserve may not necessarily be established in the annual budget. <br /> <br />In the event these funds are utilized, they should be replenished in order to prepare for possible <br />future events. The City will make every effort to replenish this reserve over a two year period <br />beginning with the completion of recovery from the event for which the reserve funds were <br />used. <br /> <br />Fiscal Stability Reserve - The Fiscal Stability Operating Fund Balance Reserve is to be <br />maintained by the City Manager at a minimum level of 25%, (three months) of the general fund <br />operating expenditures for the purposes of providing for sufficient cash liquidity in times when <br />operating expenditures (cash outflow) exceed the operating revenue receipts (cash inflow). This <br />Reserve may not necessarily be established in the annual budget. <br /> <br />The City will make every effort to establish this reserve over the next six years. Once this <br />reserve is established and if the reserve subsequently falls below 25% of general fund operating <br />expenditures, the City shall take action to restore this Reserve to acceptable levels within one <br />year. <br /> <br />FUND BALANCE POLICY <br />