Fund Balances Frequently Asked Questions
Q: How many funds does Douglas County have?
The County currently maintains 26 separate funds. Of these, 20 are governmental funds which report a fund balance; 6 of which are major governmental funds and 14 are non-major governmental funds. Three are proprietary funds which serve as internal service funds to record the County's self-insurance activity and three are fiduciary funds which report money held in a custodial capacity by the County. Proprietary and Fiduciary funds are not included in the fund balance calculations of the County.
The six major governmental funds are:
- General Fund
- Road and Bridge Fund
- Human Services Fund
- Law Enforcement Authority Fund
- Road Sales and Use Tax Fund
- Justice Center Sales and Use Tax Fund
The remaining fourteen non-major governmental funds include ten special revenue funds, the debt service fund and three capital project funds. In detail, these are:
Special Revenue Funds
- Sheriff's Forfeiture Fund
- Developmental Disabilities Fund
- Infrastructure Fund
- Open Space, Trails and Parks Fund
- Parks Sales and Use Tax Fund
- Conservation Trust Fund
- Lincoln Station Local Improvement District (LID) Fund
- Solid Waste Fund
- Woodmoor Mountain General Improvement District (GID)
- Rocky Mountain High Intensity Drug Trafficking Area
Debt Service Fund
Capital Projects Funds
- Capital Expenditures Fund
- Local Improvement District (LID) Capital Construction
- Capital Replacement Fund
Internal Service Funds
- Workers Compensation and Unemployment Benefits Fund
- Property and Liability Fund
- Medical, Dental and Vision Fund
- Treasurer's Fund
- Public Trustee Fund
- Douglas County Jail Escrow and Inmate Commissary and
Victim's Compensation Fund
Q: What are Subsequent Year Expenses and why are they Assigned a Fund Balance?
A Subsequent Year Expense is an appropriation of existing fund balance to eliminate a projected budgetary deficit in the next year’s budget. Assigning it in fund balance means that it will not get used for anything else.
Q: I don't see a balance for a particular fund here. Why?
If a fund has no fund balance it will not appear.
Q: What is a "Fund Constraint?"
All governmental funds report various fund classifications that comprise a hierarchy primarily based on the extent to which the County is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Policy cannot consider every situation that could occur, therefore, the County Manager shall have discretion to deviate should circumstances warrant. However, the following descriptions are a guideline of what can be expected to be appropriate in each fund balance classification.
- Accounts Receivable – Long-term receivables for intergovernmental loans.
- Inventory – The value of inventories that are not expected to be converted into cash.
- Prepaid Items – The valued of the prepaid assets held as non-cash assets.
- TABOR Reserves – Amendment One to the state constitution (Article X, Section 20), passed by voters in 1992, requires that reserves equal to 3% of the fiscal year spending be established for declared emergencies.
- Grant Funding – Unspent grant funding that must be used for specific programs as stipulated by the Grantor.
- Debt Service Reserves – Any amounts required to be held according to creditor requirements.
- Contractual Obligations – Resources specifically committed for use in satisfying contractual requirements. Could include amounts encumbered on outstanding purchase orders.
- Emergency Operating Funds – Funds set aside to meet operating expenses in the event of an emergency – as set forth in the County’s emergency operations policies.
- Working Capital - calculated as the greater of $100,000 or 10% of expenditures plus transfers out, less capital outlay, less any legally enforced emergency reserves (TABOR), less electronic benefit transfers (EBT).
- Revenue Shortfall - calculated as follows:
- Property Tax Funds - 5% of adopted revenues
- Sales and Use Tax Funds - the greater of $100,000 or 10% of adopted revenues.
- Subsequent Year Expenditures – Appropriation of existing fund balance to eliminate a projected budgetary deficit in the subsequent year’s budget.
- Designated Projects – The estimated cost of planned or desired, but not required, specific projects as requested by the Board of County Commissioners or other authorized individuals.
- Residual Fund Balance – In governmental funds, other than the General Fund, assigned fund balance will include any amount that is not non-spendable, restricted, or committed. This indicates that these resources are, at a minimum, intended to be used for the purpose of that fund.
- Residual Fund Balance – This is the residual fund balance classification for the General Fund and will contain any fund balance not already classified. If for any reason any other governmental fund should have a negative fund balance the negative fund balance would be reported as unassigned.